For nonprofits and the consultants who serve them, 2026 has been a year of transition. Fresh survey data and our hands-on work in the sector all point to a stronger upward trend compared to last year. Rates for consultants are rising, nonprofit budgets are stabilizing, and there are real opportunities for growth.
To help you make smart decisions for your business, we’ve rounded up the latest data to understand the trends affecting nonprofits and nonprofit consultants in 2026
Trends in What Nonprofit Consultants Are Experiencing
Trends I’ve been hearing about from nonprofit consultants in my network and in our coaching programs include:
- Fewer discovery calls are converting to contracts right away, often because nonprofit leaders have been dealing with increased financial uncertainty. But that is slowly changing as budgets stabilize around the new “normal” for federal and foundation funding.
- The common “feast or famine” cycle of consulting contracts can still be extreme. That can mean bigger gaps between new client signups and more clients signing up all at once (such as when their annual budget needs are secured).
- More nonprofits and nonprofit consultants are curious about or starting to use AI tools in their workflows—with both successes AND setbacks.
- More nonprofit consultants are being intentional about managing or avoiding burnout, which is especially necessary when there are more ups and downs in client contracts.
Trends in the Nonprofit Sector that Affect Consultants
Running a nonprofit is not getting any easier in 2026. Trends in the nonprofit sector over the past year reveal continuing challenges for nonprofit leaders:
- Fundraising and financial sustainability are the top challenges facing most nonprofit leaders. In the past year, 40% of nonprofit CEOs report reduced foundation funding and 36% report reduced federal funding. (May 2026, CEP State of Nonprofits; May 2025, Nonprofit Trends Report from Salesforce, Seventh Edition; and April 2025, Urban Institute)
- Burnout in nonprofits is rising—and staff morale is dropping. Nearly 90% of nonprofit leaders are concerned about their own level of burnout, and 90% also report that burnout is impacting their staff. Two-thirds of nonprofits now report capacity issues related to staff hiring, retention, and burnout. (May 2026, CEP State of Nonprofits, May 2025, CEP State of Nonprofits, and May 2025, Nonprofit Trends Report from Salesforce, Seventh Edition)
- Nonprofits remain under pressure. Demand for community services is increasing, the high costs of inflation are taking a toll on nonprofit budgets, and funding is not keeping up. For example, 86% of nonprofit leaders report that high costs from inflation have affected their organizations. (May 2026, CEP State of Nonprofits; and 2025 State of the Nonprofit Sector Survey)
- Federal funding changes remain a challenge. In 2025, over half (52%) of nonprofits that receive federal funding experienced financial instability. Many of these nonprofits responded by reducing staff, canceling programs, and delaying initiatives. (September 2025, The NonProfit Times)
While the data paints a difficult picture, on the ground we’re seeing just how vital the role of nonprofit consultants has become. Many consultants bring decades of experience in the sector to their work. These consultants can offer the strategy, insights, and experience that leaders need to navigate today’s ups and downs.
What the Data Says About Nonprofit Consulting Right Now
In 2026, the nonprofit consulting sector is continuing to play an essential role in supporting nonprofits. According to the latest survey data on our sector:
- Average hourly rates for nonprofit consultants are rising: from $151/hour in 2024 to $159/hour in 2025.
- Most consultants are spending 20-24 “billable hours” per week on client work. Consultants also reported spending 5-14 hours per week ON their businesses—that means doing tasks not related to client services.
- Six-figure businesses are possible and even common—especially if that’s one of your goals. The average gross “billing” for consultants in 2025 was $124,000. Other data shows that, in 2025, median annual earnings for full-time consultants were $87,000.
- Part-time consulting businesses are viable models. Part-time consultants may earn less, but they work fewer hours while gaining flexibility and freedom.
- Age is not a hindrance to building your business. Half of nonprofit consultants are age 45 or over—meaning they’re bringing a wealth of knowledge and experience the sector desperately needs to navigate today’s challenges.
- Referrals are the bread and butter of nonprofit businesses. That means building and cultivating networks is key to a thriving business.
Takeaways About Consulting Trends
Fresh data about trends in nonprofit consulting is great to have—but it’s most useful when translated into actions you can take. Here are three ways you can use this data right now in your own business:
👉 Review your rates as a nonprofit consultant.
Are you hitting your income goals without working yourself to burnout? If not, there may be room to raise your rates in 2026. Keep this in mind when you’re bringing on new clients or renewing contracts with existing clients.
👉 Think about your HOURS as much as your RATES.
I was pretty surprised to read that consultants are spending 5-14 hours a week on business-related tasks (rather than client-related work).
The big question I have next is: WHAT are folks doing with those hours? Because that’s a lot of time each week if it’s not being used strategically.
For example, business-related work can include growth-focused activities like digging into service design and refining marketing strategies. It can ALSO include day-to-day admin like manual invoicing, writing every email from scratch, going in circles scheduling meetings, or writing scopes of work from scratch for every client (rather than using templates).
At Funding for Good, we talk a lot about streamlining and templates because they make such a HUGE difference in how you spend your time as a consultant.
When you save time on the business activities that are a slog, you get to CHOOSE where to put that time. You can earn more money. You can enjoy more free time. Or you can invest in achieving long-term business goals (like planning for retirement, hitting multi-six figures, working half-time but earning a full-time income, etc.).
👉 Don’t get caught up in comparisons.
Are you earning less than the average hourly rate but still love your work? That is perfectly fine. You don’t have to earn the most, have the biggest clients, or grow the biggest business to be a success.
This is something a lot of nonprofit consultants in our Consulting Boot Camp struggle with. It might sound obvious, but knowing what success looks like for YOU can make a big difference in how you feel about your work and your business. And that difference definitely comes through when you’re talking to prospective clients.
Get Support to Hit Your Consulting Business Goals
One of the smartest, research-backed methods of building a successful and sustainable business is through coaching. Funding for Good coaches consultants of all types, including through our signature 60-Day Nonprofit Consulting Boot Camp. Because we know coaching is such an important investment, you can even book a call to find out if the program is right for you.
