Waves to Ride in 2026
If you’ve been reading the Wave Report for any amount of time, you know that I think there is a lot we can learn from waves to help us grow ourselves and our organizations.
One lesson I learned long ago is that it’s much easier to catch a wave and ride the existing momentum than to create momentum of my own where there was none.
One reason I believe The Rise of Sustainable Giving has resonated so much with charity leaders is that sustainable giving has momentum.
Sustainable giving is riding the wave of momentum of subscriptions and the subscription economy, and changing donor behavior, creating new opportunities to grow sustainable recurring giving for their charities.
Each year, one of the most fun Wave Reports I write is this one – what are the waves that, as leaders, I think we should pay attention to in the new year.
And because I’m deeply passionate about helping you grow sustainable giving, I’ll show how you can tap into each to grow recurring revenue for your organization.
Without further ado, here are six waves I see building momentum in 2026 that I think you can ride to create growth for you and your organization:
#1 Wave to Ride
Donor-Advised Funds (DAFs)
Donor-Advised Funds have been growing at an accelerating pace for more than a decade. In 2024, contributions to DAFs exceeded $89 billion, total assets surpassed $326 billion, and grants from DAFs to charities reached an all-time high of $65 billion—more than double what donors were granting just six years earlier (per the DAF Research Collaborative).
As they have become more accessible through sponsors like Fidelity Charitable, DAFs aren’t just for the ultra-wealthy anymore. Increasingly, donors giving moderate amounts are using DAFs as a practical planning tool.
With the standard deduction now exceeding what many households give annually, DAFs allow donors to “bunch” contributions in high-income years – then use their DAF as a charitable checking account to support causes they care about over time.
Looking ahead, many sector analysts expect DAF assets and grantmaking to continue growing steadily, especially as younger donors inherit wealth and prefer flexible, donor-controlled giving vehicles.
I’ve got an episode of the podcast we’re working on right now that I hope will shed light on this opportunity—and how it intersects with sustainable recurring giving.
Sustainable Giving Application
DAF giving can be recurring—and because the funds are already designated for charity, they’re often easier dollars to activate. Consider asking donors whether they have a DAF and inviting them to join your sustainer program through DAF giving. Reduce friction by adding a DAFPay button to your giving page.
🔗 Learn more: The DAF Research Collaborative’s annual DAF Report offers a clear, data-driven look at long-term growth and trends.
#2 Wave to Ride
New Tax Incentives
I’m not a CPA or tax attorney, and I’d just as soon leave that work to the professionals, but there are some interesting developments in the most recent federal budget, referred to as the “One Big Beautiful Bill.”
Overall, while I’m somewhat discouraged by elements of the bill that reduce tax incentives for larger donors and companies, and by a high standard minimum deduction that makes it less relevant to most everyday donors, there is one element we can tap into to grow generosity from everyday donors.
The bill introduces a universal charitable deduction – allowing donors who do not itemize to deduct up to $1,000 ($2,000 if filing jointly) for cash gifts to public charities.
If you’re a fundraiser, consider how you might encourage everyday donors to give and take advantage of this new opportunity to help make an impact and save on taxes at the same time.
Sustainable Giving Application
At $1,000 individually or $2,000 for married couples filing jointly, that’s $83 to $167 a month that a donor can give on a recurring basis and get a deduction. Consider appealing directly to smaller donors with this information, and encourage them that they can give up to those amounts and get a deduction.
#3 Wave to Ride
Middle and Major Gifts
Middle and major gifts remain one of the most important and highest-leverage ways to grow sustainable funding. Overall, fundraising trends are toward fewer donors giving more, and while I hope in my lifetime to help reverse that trend, it’s clear that investing in growing middle and major donor gifts is wise.
2026 will continue to see donors give more to the causes that are most important to them, and that includes donors giving larger gifts, including gifts of assets.
Further, major donors are subscribers too. Every charity we are working with is seeing donors step in with recurring gifts from $500 to $5,000 a month, and everywhere in between. (One charity recently shared they have a major donor who gives $50,000/month!) 🤯
Sustainable Giving Application
Major donors are subscribers too, and more and more are choosing to give to causes on a recurring basis. And despite concerns that recurring giving may suppress total giving, the data we are seeing is that when major donors give on a recurring basis, their overall giving goes up. Consider how you might cultivate mid- and major donors to give sustainable recurring gifts, and identify existing sustainers who might be candidates for middle or major donor solicitation.
#4 Wave to Ride
AI Tools as Coworkers
One of the most helpful ways to think about technology in general, and how we might leverage AI better, is to think of AI as a collaborator. I’ve written about how we can leverage AI regularly.
Technology in the 20th century was all about augmenting human ability – it helped us do what only we could do, just better and faster. Technology was a power tool.
However, technology in the 21st century, particularly with artificial intelligence tools like ChatGPT, Claude, and others, is increasingly acting as collaborators and partners. If you’ve ever gotten lost in a thread with ChatGPT, jaw to the floor at its apparent wisdom, you know what I mean. Technology is becoming a coworker.
In 2026, more leaders will adapt and learn to leverage AI tools as coworkers – helping them strategically plan and execute.
Sustainable Giving Application
Tools of artificial intelligence can help in multiple ways to grow sustainable giving – AI-based segmentation and modeling can help us to reach the right people with the right message at the right time. AI-based generative tools like ChatGPT can help us to refine and create messaging, value propositions, and communications. Consider how you might tap into AI-based tools in 2026 to be more effective and efficient and inspire more generosity.
#5 Wave to Ride
Giving Circles
Part of a broader movement known as collective giving, giving circles are an ancient practice of group giving with a modern twist. I recently interviewed the CEO of Grapevine, Emily Rasmussen. Grapevine is a platform that helps giving circles form and connect potential donors and nonprofits.
You can listen to my conversation with Emily here:
Sustainable Giving Podcast S2:E5
From Crowdfunding to Community: Giving Circles and Sustainable Giving
I’m not sure how giving circles will play out in 2026, but we know that social giving is not a new trend, so I expect more of these groups to form for the purpose of making a collective giving impact. And those charities that learn how to support and tap into these groups will benefit from this powerful form of generosity.
Sustainable Giving Application
Giving circles, by their very design, are a form of recurring giving. Each member agrees to contribute a set amount of money on a recurring basis (often quarterly), and then the group meets to determine who to grant the funds to. Giving circles are a powerful example of collective recurring giving, and it will be interesting to see how causes tap into that movement in 2026.
#6 Wave to Ride
Sustainable Recurring Giving
We continue to see the massive wave of sustainable recurring giving gaining momentum, as donors continue to choose to give to more causes on a recurring basis than at any other time in history.
The question is which charities will take advantage of this trend.
It’s not enough to just enjoy the fruits of donors proactively choosing to give to charities on a recurring basis. When an organization decides to treat sustainable giving as a discipline and not just a campaign, giving accelerates.
This week, I met with two organizations that we’ve been advising since last summer. In the first six months of working together, the first organization saw a 4:1 return on its investment on 12-month donor value alone, and a whopping 11:1 when accounting for the long-term value (LTV) of those new recurring donors.
The second organization? In six months, they’ve seen a 16:1 return in 12-month giving from sustainers, and a 55:1 return when factoring in long-term value.
In other words, for every $1 this charity invested in growing its recurring giving program, it raised $55 in long-term value from new recurring donors. 🤯
I’m so proud of these organizations. They put in the work. But here’s the thing – they aren’t unusual. They aren’t extra special. This could be your organization.
The question is, will you catch this wave in 2026?
Ready to Scale in 2026?
If sustainable recurring giving is the biggest opportunity facing charities in 2026, the real question is this:
Are you positioned to scale it—or just maintain what you already have?
If your organization has built a strong base of recurring donors (roughly 1,000+ sustainers or $500k+ in annual recurring revenue) and you’re ready to move from incremental growth to intentional scale, applications are now open for the Sustainable Giving Accelerator.
The Accelerator is our flagship, hands-on growth program for organizations that are serious about accelerating recurring giving. We combine a deep-dive assessment, a clear two-year growth roadmap, and focused execution support—so you’re not just learning, but actually growing in the first six months.
We’re only able to accept 4 organizations this round, which allows us to go deep and deliver meaningful results. Over the past three years, we’ve partnered with 35 organizations and helped unlock more than $41 million in sustainable, recurring revenue.
One example: The Joshua Fund came to us with a solid base and a desire to scale. Two years later, they’ve grown their recurring donor base by 79%, securing millions in long-term recurring value that didn’t exist before. You can hear the story directly from The Joshua Fund’s Chris Free here.
Applications close January 30, and we’ll be enrolling the accepted organizations over the next couple of months.
👉 Learn more and apply here: www.imago.consulting/growth
💡 Takeaway: If 2026 is the year you want to stop maintaining recurring giving and start scaling it, the Sustainable Giving Accelerator was built for that moment. Apply now while space remains.
Until next week… Surf’s Up! 🌊
- Dave