How funders can make it a better 2026 for everyone

Ben Wittenberg argues that in the face of mounting pressure on charities, funders in 2026 can either deepen strain or strengthen the sector by collaborating on change, listening and learning honestly, and offering support that goes beyond grants to help charities plan, adapt and thrive.

Funders, especially trusts and foundations, sit at the heart of the UK charity ecosystem, shaping what is possible for organisations that are already stretched to their limits. In a year when rising costs, falling income, intense competition for every pound and shifting priorities are all converging, the way funders behave can either multiply impact or unintentionally multiply stress. The choices funders make in 2026 will go a long way towards determining whether charities can keep doors open, retain brilliant people and meet growing need in their communities.

Plan change together, not in isolation

A recurring frustration for grant fundraisers this year has been the “surprise pause” – funds closing with little warning while priorities or processes are reviewed. Strategy reviews, system upgrades and catching up on backlogs are all necessary, but when several funders in a niche pause at once, whole segments of the sector can suddenly find their top prospects gone. For organisations already dealing with rising demand and inflationary pressure, that kind of cliff-edge can push already fragile plans into crisis.

Funders have real opportunities to soften those shocks in 2026. Being open about review timelines and signalling upcoming changes early gives charities time to plan, diversify and adjust. Even small steps – shared statements about pauses, joint FAQs, or aligned reopening dates – can mean the difference between a bumpy patch and an existential threat for frontline organisations.

Listen hard, learn honestly

It is an old grant-making joke that once you start handing out money, you never pay for lunch or hear the unvarnished truth again. In a context where application volumes are surging and internal systems are under strain, funders need better data and independent challenge to understand what is really working for applicants and grant holders. Without that, well-intentioned tweaks to criteria, forms or reporting can create new barriers, especially for smaller organisations and those led by marginalised communities.

Independent evaluations and learning projects can cut through the noise. DSC’s work with funders – mapping grant holders, assessing impact and tracking how funding flows through a field – has helped funders refine programmes, target gaps and make the case for renewed or additional investment. Commissioning this kind of external review, and sharing the learning openly, gives funders a clearer picture of their role in the wider ecosystem and helps charities see how best to engage.

Go beyond the grant

One of the most powerful things funders can do next year is to grow their “more than money” offer. Funder Plus or Grants Plus-style programmes that combine financial support with practical learning, advice and space to think are often transformational for organisations whose training budgets are tiny or non-existent. When funders partner with DSC to provide flexible bursaries for training and support, grant holders can build skills, strengthen governance and improve fundraising, even if there is no scope to increase the size of the grant itself.

There is no single Funder Plus model that works for everyone, and that is a strength rather than a weakness. Some funders back open bursary pots, others design structured programmes around themes like governance, leadership or income diversification, and many test a pilot first and refine it over time. What they have in common is a commitment to making access easy, stripping out extra admin, and trusting charities to choose the support they most need, rather than second-guessing from a distance.

Facing 2026 as a shared challenge

The pressures coming over the hill – competition for funds, rising costs, growing demand, AI-generated applications and overloaded grant management systems – are not problems any single funder or charity can solve alone. They are system-wide challenges that demand more collaboration, more honesty and more willingness to experiment together. By expanding non-financial support, coordinating strategic shifts and investing in independent learning, funders can help ensure that scarce resources go further and do more good where they are most needed.

For charities on the front line, that kind of partnership will be the difference between constantly firefighting and being able to plan, adapt and thrive. For funders, it is a chance to show that their role is not just to distribute money, but to convene, connect and create the conditions where the whole sector can weather uncertainty and build a better 2026 for the people and communities it exists to serve.

Find out more about DSC’s Funder Plus work here.

Find out more about how we can help with research, beneficiary mapping or independent impact reporting here.