The Status of UK Fundraising 2026 – what drives growth

Developing new fundraising strategies is proving to be a difficult challenge for charities in 2026. Charities are facing the ongoing task of balancing rising demand with uncertain funds, searching for new ways to harness the support of donors who are likewise navigating financial pressures and changing priorities.  

Indeed, the current economic situation was cited as the main challenge facing UK charities in the 2026 Status of UK Fundraising report, conducted by fundraising software providers Blackbaud. The report looks at key trends impacting the charity sector and evaluates how the sector is using digital technology to respond.  

For example, charities seeing income growth during this challenging period have taken “a proactive response”, including investing in capacity, stewardship, or innovation. Exceptional gifts, focus on supporter experience, and new or different activity were cited as the three biggest drivers of growth. 

And even amid economic uncertainty, the report revealed more cause for optimism – more charities are reporting income growth or stable performance than decline in the last full financial year. Most organisations met or exceeded their fundraising targets.  

So what does this optimism mean for the charity sector? It means that there are still opportunities to boost fundraising and drive support in an ever-evolving economic climate. There is still the potential for innovation and growth in the charity sector in 2026. As the fundraising landscape evolves, charities remain resilient.  

Below, we explore three of the trends highlighted in the 2026 Status of UK Fundraising report in more detail. 

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What does the fundraising landscape look like in 2026? 

Supporter experience drives growth 

When asked about the main drivers of their income growth, around half of charities cited exceptional gifts, making it the biggest reason behind boosted fundraising for four years running.  

The success of exceptional gifts is particularly important given how it demonstrates the need to prioritise supporter engagement and build trust with supporters. Exceptional gifts – typically large, one-off donations – reflect the long-term benefits of creating excellent supporter experiences, tailored to their needs.  

As Blackbaud points out, exceptional gifts are not random: “Major gifts result from intentional giving programmes and strategies aimed at cultivating these relationships.” 

Charities require a long-term strategy involving a portfolio of major donors to make exceptional gifts no longer a nice surprise, but a regular, staggered source of income. Major donors may not donate in the same year, but they may still be inspired to give at regular intervals over a longer period of time. 

The second biggest driver of income growth was a greater focus on supporter experience, with 36% of charities saying it contributed, ten percentage points more than in 2025.  

Charities want to use AI but struggle with how 

More than nine in ten charities are using artificial intelligence (AI), according to the report, with just 9% of participants saying they don’t use it. This is a considerable increase on people using AI, after only three quarters of charities said they were using it in 2025.  

Generative AI is most commonly used in the charity sector, with 59% saying they use it to draft content. Far fewer charities are using AI to analyse or visualise data (26%), while just 23% are using it to automate tasks. 

So while AI adoption is generally high in the charity sector, more advanced applications of the technology are still limited. Few charities are using AI to optimise campaigns, discover leads, or test communications. Almost half of charities said they did not have the resources to explore how AI can be used in their organisation, while a similar proportion (45%) said they lacked the technical expertise to use it effectively. 

Technology use is high, but fragmented 

The report found that charities use an average of four systems or tools weekly to support their work. The technology they use has a wide-range of uses, including constituent management, digital marketing, analytics and reporting, collaboration, and finance.  

But while technology is clearly helping charities advance their mission, only 8% of organisations say their tech is well integrated. This percentage rises to 17% among digitally mature organisations. 

Blackbaud asks respondents to rate their own digital maturity between one and ten. Digitally mature organisations rate themselves at around eight out of ten, while digitally average organisations score themselves between five and seven. The least digitally mature charities rate themselves between one to four, and a third of this group say their systems are not at all integrated.  

Integrated technology gives charities a more complete picture of their progress. Tools work together, with shared data, to meet the changing needs of supporters, to identify new patterns, and forecast performance. It is no surprise that there is a correlation between the level of digital maturity and the level of tech integration – both mean tech is used more effectively, resulting in greater impact for the communities they serve.   

“The findings suggest that digital maturity is an enabler of growth, and even a moderate level of maturity can have a positive impact on performance,” advises Blackbaud. “To strengthen your digital maturity, begin by evaluating your current digital capabilities: pinpoint where your infrastructure, skills, or processes fall short.” 

To discover more about fundraising in 2026, and how charities can innovate to drive donations, check out the full Status of UK Fundraising report below. 

Download the full report