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Our take on what the 2026 Charity Insights findings mean for social purpose organisations and civil society more broadly.
Our take on what the 2026 Charity Insights findings mean for social purpose organisations and civil society more broadly.
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Funding pressures, rising demand, shrinking civic spaces, pressure on charity workforces and digital transformation are just some of the many factors that characterise the challenging operating environment for charities.
Financial health and income generation are understandably the primary focus of many charity leaders. However, our research here and our work with charities has shown that financial and operational health, positive internal culture, clear impact reporting, strong external relationships and clarity of purpose are all equally important in building long-term organisational resilience.
Indeed, this research clearly highlights that a considerable amount of charity leaders’ time is taken up by the demands of the day-to-day running of their organisations, with less time than they would like on strategic long-term thinking. This is a common tension we observe among the charities we advise and support. Yet, leaders who are able to step back and prioritise strategic work, are also those that feel most optimistic and secure for the future.
Those who feel a sense of belonging to a community are far more likely to donate. Charities can help to foster this sense of belonging and communicate their relevance at a local level. Many charities are already embedded in communities, but there are lessons for larger organisations here. Providing real examples of change that people can relate to and participate in, could mean people are more likely to engage, either through donating, volunteering or wider social action.
Throughout this report, there are numerous examples of charities taking steps to improve their wider organisational resilience. This includes developing impact reporting frameworks, which can help to improve their confidence and sense of long-term sustainability, or making the decision to diversify their income, which 37% did in the last year.
The data also points to potential opportunities for resilience-building that can be a blind spot for charity leaders. For instance, very few see communicating their impact (19%) and building trust (6%) as key issues facing their organisations, compared to 63% of people who see these as important considerations in their giving. While this research finds that external networking can also be de-prioritised, the evidence remains strong that collaborating with peers and partners is a major protective factor in terms of organisational resilience and sustainability.
Finally, I was particularly encouraged to see lived experience coming through as a key trend in the research. This is something we feel strongly about at CAF, and it is great to see it mentioned as a priority in recruitment — particularly in humanitarian and development contexts. It is a real asset for charities in shaping and owning their organisational mission.
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This year’s Charity Insights report brings the day-to-day reality for charities around the world into clearer view. The stories behind the data call on those who influence the environment in which charities operate to listen closely. Funders, policymakers, government leaders, and others whose decisions influence charitable work will find not just data in this report, but a clear message from charity leaders about what they need to succeed.
The findings are sobering. Fewer than two in every five charities around the world feel well positioned for future success, and the vast majority identify financial challenges among their most pressing concerns. More — and more reliable — funding matters. However, the findings are a reminder that while funding matters, partnership, trust, flexibility, and recognition matter too.
So, the question becomes: what would stronger partnership look like across the philanthropic ecosystem? The challenges explored in this report cannot be solved by any one group acting alone. Progress depends on charities, funders, policymakers, and communities working together to create the conditions in which social purpose organizations can thrive.
Two-thirds of charities say that funders could better support them by facilitating opportunities for networking and learning. For some funders, opening a door, making an introduction, convening peers, or sharing useful knowledge may be a practical way to extend support beyond the grant itself.
The data also invites donors to examine how funding is structured. Charities with higher levels of restricted funding can find it harder to achieve their goals. Where circumstances allow, greater flexibility and a clearer understanding of the true costs and broader inputs needed to deliver the work can give charity leaders more room to respond, adapt, and enable their strategy.
The report also asks us to listen closely to charity leaders who say they feel undervalued. Championing their role and providing recognition could serve to not only galvanise their efforts, but also to generate increased donations. Public platforms can be used to acknowledge the expertise and contribution of charities, share evidence of their impact, and help strengthen public understanding of their role. Our accompanying Donor Insights report suggests that when people perceive that their government is supportive of charities, that confidence can also drive public generosity.
None of these actions is a complete answer, and not every action will be right in every context. They are an invitation to begin with what is in our reach. This report underlines that the connections we can make, the knowledge we can share, and the stories we publicize would help to further the impact we all want to see.
Creating spaces for collaboration and allyship is central to our mission at AFE. The value of peer-to-peer networking and learning — from both positive and negative experiences — is so important to building a more resilient charity sector overall.
The more charity leaders can for sharing on this level, the more equipped they will be to tackle challenges in their own organisations.
The data clearly highlights the extent to which restricted funding can exert pressure on charities and civil society organisations. In Zambia we’ve seen the power that core funding towards costs like institutional strategy formulation, policy/governance convenings, rent, salaries or consumables can have, as it allows organisations to invest in their own structures and systems, putting them in a better place to be able to deliver real impact in communities.
The variable provision of restricted and unrestricted funding around the world is a big challenge, with poorer countries seeing more ring-fenced, project-only funding. I hope that funders’ appetites and regulatory hurdles can be moved to a place where charities and civil society organisations receive more unrestricted funding (or even restricted funding that is earmarked for core costs), so they are empowered to prioritise their own health as organisations.
The Donor Insights report showed that Japan’s position as the country that is least trusting of charities reflects a significant ‘disconnection’ — where the general public simply can’t see and appreciate the role that charities play in the fabric of society.
This gap, while pronounced in Japan, is by no means unique to us. Charities around the world need to recognise this challenge and do far more to tell their story and build connections with the public and other funders.
Through clearly communicated tangible results, social value, and transparency at the community level, the charities that can best demonstrate the positive change they bring about, are those that will flourish.
