The charity sector enters 2026 facing familiar headwinds: unpredictable income, rising demand, and rapid technological change. Yet we also carry a renewed sense of purpose.
Charities exist to change outcomes that matter profoundly to people, communities, and the country. That clarity is our greatest strength – and in an increasingly divided society, it matters more than ever.
Those that are more likely to thrive this year will combine a steadfast, mission‑led strategy with the courage to transform how they work, partner, and engage. Their leaders will need to oversee the following three shifts to succeed.
Mission‑led impact and organisation‑wide transformation
Impact – not quarterly reporting – must be a charity’s North Star. The most effective charities will set a long‑term strategy rooted in their mission, then align everything behind it: governance, operating model, culture, and finance.
This means being clear about the problems we’re uniquely placed to solve, the outcomes we commit to achieve, and the capabilities we need to get there. It means making tough choices, including stopping high-quality work that is not central to the mission.
The role of leadership is key to success. Boards and executives must lead transformational change from the front, not just settle for the status quo. That starts with honest diagnosis, decisive prioritisation, and a disciplined test‑and‑learn rhythm – accelerating what works, and retiring what doesn’t.
Culture is critical. When teams are trusted to own outcomes, equipped with the right data, and supported to learn in the open, high performance becomes the norm and transformation stops being an annual initiative, but how the charity operates.
This is also the year for charities to move beyond scattered AI pilots, instead implementing high-value programmes that help achieve objectives. AI can help diagnose and respond to supporter needs, triage services more effectively, translate evidence into action, and free staff from routine tasks for the human work only they can do. This requires charities to establish strong data foundations; clear consent, high‑quality metrics, and real‑time visibility so that people and teams can make faster and better decisions.
Leaders should set out a three-year roadmap for major change programmes, appoint senior leaders with clear decision rights to own the transformation, and build skilled delivery teams to accelerate progress. For AI, adopt a value-first approach: two or three initiatives with measurable benefit will deliver far more than ten experiments.
Diversified income and partnerships that accelerate the mission
Sustainable impact depends on resilient income. Relying on one fundraising stream, a single grant giver, or a handful of major donors is a risk we can no longer afford.
The next phase of diversification is both financial and strategic. It includes philanthropy that funds innovation and scale, corporate partnerships that bring capital and capability, trading or licensing that sits squarely within a charity’s purpose, and social investment where repayable finance can accelerate delivery.
Partnerships can be the fastest route to scale impact. Collaborations between charities, universities, businesses, and the public sector can reduce duplication, open new channels to beneficiaries, and bring specialist skills that would be costly to build alone. The best ones start with the beneficiary outcome and work back: what problem can we solve together, and what does each partner contribute to doing it better, faster, or more affordably?
Set growth targets for two priority income streams and establish partnership principles that protect your values while enabling speed. Invest in the commercial and legal skills to negotiate fair, outcome-focused agreements. Success should be measured in lives improved and inequalities reduced – not just income booked.
Supporter engagement reimagined at scale
Supporters are vital to our work, but expectations have rightly changed. People want relationships that feel personal, useful, and respectful of their time and data. This year charities will move from broad segmentation to individual journeys. That means short, human messages, timely opportunities to act, and content that helps supporters see and feel the difference they make.
Technology is an enabler, not the point. Data and AI can help us understand intent, predict the next best action, and tailor experiences – while rigorous consent and privacy guardrails preserve trust. But human connection still matters most, especially at emotionally significant moments: someone to talk to after a cancer diagnosis, a thank you that recognises the person rather than the pound, a volunteer experience designed around purpose and respect.
Audit your supporter journeys for friction, length, and relevance. Ask them directly about frequency and channels. Reduce the number of asks per contact and think about what they get back. Blend automation with human contact to create relationships worthy of the causes we serve.
The theme running through these shifts is leadership
Charities need to make bolder decisions and receive faster feedback. Be explicit about your mission, impact and outcomes. Back a small number of high‑value transformations and execute them well. Build partnerships that make a substantial difference. Treat supporters as valued partners in change. And share what you learn – especially when plans don’t go to plan – so the whole sector gets better.
Our challenges are real, but so is our opportunity and privilege to deliver more impact for those who rely on us. The future favours the bold. This year, let’s be courageous.
By Michelle Mitchell OBE, chief executive of Cancer Research UK
