What Is Shaping the Funding Landscape in 2026?

What trends are shaping nonprofit funding in 2026? For nonprofits and fundraising professionals, 2026 is already shaping up to be a year that requires adaptability, strong positioning, and proactive strategy. ZIM’s first quarter has been defined by steady progress, thoughtful partnership with our clients, and a clear focus on helping organizations navigate an evolving environment.

What Are We Seeing in the Funding Landscape?

It’s encouraging to see that many funders are still prioritizing general operating support and capacity building. At the same time, there is a noticeable shift toward more specificity. Funders are asking more detailed questions about outcomes, long-term sustainability, and how organizations plan to measure impact in real and tangible ways. 

Another clear trend is the increased competition for funding. Many organizations are seeking support at a time when demand for services continues to rise, but funding has not always scaled at the same pace. This is leading to more competitive application cycles and a greater need for organizations to be strategic in how they prioritize opportunities.

Government funding remains a significant opportunity, but it continues to require a high level of readiness and patience. In Q1, we have seen a steady flow of opportunities at the federal, state, and local levels, alongside some delays and shifting timelines.

In terms of equity, philanthropy and federal trends are at odds. Many foundations still view equity as a priority, but are facing federal pressure not to use this language. In the wake of many executive orders in 2025, nonprofits have shifted their public-facing media away from equity, but they still continue to support vulnerable communities. Federal pressure is shaping state, county, and local funding opportunities, resulting in the government grants landscape at all levels shying away from equity as an explicit priority. This is also reflected in some foundations, while others continue to visibly promote equity. This leaves nonprofits torn between how to address this across their fundraising efforts.

What Is Changing in Government Grants Right Now?

One of the most significant updates this quarter is a set of proposed changes to SAM.gov registration. These measures would require organizations to agree to new certifications tied to recent executive actions in order to obtain, maintain, or renew their registration. Because SAM.gov registration is required for federal funding, this can directly affect an organization’s ability to apply for and receive grants. These certifications would be signed under penalty of civil and criminal law, which adds another layer of risk and consideration for nonprofits navigating federal funding.

At the state level, there are also some promising developments. Colorado House Bill 26-1274 is focused on improving how state agencies issue payments to grant recipients. If passed, this bill would allow nonprofits to request a portion of their funding in advance, rather than relying solely on reimbursement. For many organizations, especially those with limited cash flow, this could remove a significant barrier to implementing programs after an award is made.

At a national level, there was also some positive news this quarter. Courts have upheld SNAP benefits, which help ensure continued support for families and stability for nonprofits working in food access and basic needs. While not a grant program itself, this kind of policy decision has a direct impact on the communities many nonprofits serve and can influence overall demand for services.

One of the biggest themes our team has noted is how tight turnaround times have been. Many opportunities are being released with shorter application windows, which makes preparation, strong alignment, and checking eligibility essential. Organizations that already have core materials, strong data, and clear program structures in place are at a clear advantage.

What Are We Paying Attention To?

This is not only about being prepared to respond to opportunities, but also being ready to pivot in moments of uncertainty or funding disruption. In a landscape that can shift quickly, organizations are often faced with unexpected gaps or challenges. Those that are gaining traction are the ones that have taken the time to get clear on their story, their data, and their priorities, allowing them to respond quickly and confidently. This level of preparedness also creates the ability to turn moments of crisis into opportunities for fundraising, rather than setbacks that stall progress.

We are also paying close attention to how funders are evolving their expectations. There is a continued shift toward funding that supports long-term impact rather than short-term outputs. This requires a different kind of narrative and a deeper level of clarity from organizations.

At the same time, relationships continue to matter. Strong proposals are critical, but they are often most effective when paired with thoughtful cultivation and ongoing engagement.

What Comes Next?

As we move into the next quarter, the pace is only going to pick up. There will be more opportunities, but also more competition. Organizations that are proactive, prepared, and strategic will be in the strongest position.

At ZIM, we are excited to keep building on what this first quarter has set in motion. We are grateful to be working alongside organizations that are doing meaningful, community-rooted work, and we are looking forward to what the rest of the year will bring. 

If you are reflecting on your first quarter and identifying areas where additional support could strengthen your funding strategy, we would welcome the opportunity to connect.