Nonprofits Are Growing Revenue Faster Than Ever — So Why Do Leaders Say the Foundations Feel Fragile?

On paper, the nonprofit sector's latest financial numbers look like unambiguous good news: a 2026 survey of 500 nonprofit executives found that 83% grew revenue over the past year. But the same research, from Momentive Software, delivers a pointed warning in its very title — "Strong Revenue, Fragile Foundations" — that the growth itself may be exposing weaknesses the sector hasn't yet resolved.

Growth Is Outpacing Donor Trust

Nine in ten surveyed executives say donor trust is now harder to earn than it used to be — a striking finding to sit alongside 83% revenue growth. It suggests organizations are bringing in more money even as the relational foundation of that funding — trust — becomes more effortful to build and maintain, a gap that could eventually catch up with revenue if left unaddressed.

A Single Point of Failure in Financial Operations

Perhaps the most concrete vulnerability the research surfaces: 65% of surveyed organizations rely on a single person to manage all of their financial operations. For a sector processing steadily larger sums of money, that concentration represents a genuine operational risk — institutional knowledge, financial controls, and continuity all resting on one individual's availability and judgment.

Technology and AI Gaps

The research also identifies gaps in AI operationalization and broader technology infrastructure as a growing threat to the sector's trajectory. As donor expectations around efficiency, transparency, and data-driven reporting rise, nonprofits that haven't invested in the underlying technology and processes to meet those expectations risk falling behind organizations that have — regardless of how strong their current revenue numbers look.

Diversifying How Nonprofits Bring In Money

On a more constructive note, the research points to nonprofits increasingly embracing online giving, merchandise sales, and donor-supported digital transactions as ways to build more resilient, diversified income streams — a hedge against overreliance on any single funding channel.

Strong Numbers, Structural Homework

Read together, the findings paint a sector experiencing real financial momentum that hasn't yet been matched by proportional investment in the trust-building, staffing depth, and technology infrastructure needed to sustain that momentum — a gap that, left unaddressed, risks turning today's growth into tomorrow's vulnerability.