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More nonprofits are raising spending on risk management and compliance, BDO's annual benchmarking survey finds

In the accounting firm's tenth survey of 250 nonprofit leaders, 52% said they are increasing spending on risk and compliance, up from 38% a year earlier. Fewer see a merger as likely, and most report using AI.

Nonprofits increasing spending on risk management and compliance

2025 survey 38% 2026 survey 52% Up 14 points 2025 survey 38% 2026 survey 52% Up 14 points
Share of 250 nonprofit leaders surveyed for BDO in May and June 2026Chart: The Nonprofit Herald · Source: BDO USA via Business Wire, published by The National Law Review

Chicago. More than half of nonprofit leaders, 52%, say their organizations are increasing spending on risk management and compliance, up from 38% in 2025, according to the 2026 Nonprofit Standards Benchmarking Report that the accounting firm BDO USA released on Oct. 26.

Now in its tenth year, the report surveys 250 nonprofit leaders about financial health, strategy, technology and risk. Rabin Roberts Research fielded the survey in May and June 2026 among leaders of health and human services organizations, public charities, colleges and universities, grantmakers, trade associations and professional societies.

Spending on the back office

Half of the organizations are increasing investment in finance and accounting systems, up from 40% last year. Ninety percent expect growth over the next 12 months, and 74% expect to introduce new programs without eliminating existing ones. The share holding seven to 12 months of operating reserves grew from 24% to 32%.

Partnerships with similar nonprofits remain a priority for 61% of respondents, while 40% consider a merger likely, down from 51% in last year's survey.

Measuring results remains hard. Of the leaders surveyed, 59% said inadequate technology makes it difficult to gather information on program impact, half cited too few staff to collect the data, and 49% pointed to the lack of a consistent framework for measuring and reporting it.

AI without a dedicated owner

Ninety three percent of the organizations now use AI in some capacity, and 70% have formally adopted it in at least one area, including 27% that have integrated it across several. Yet 58% manage oversight of AI within their IT function rather than through a dedicated owner or committee, which the firm says can leave gaps in how compliance and financial risks are handled.

“No organization can anticipate every challenge ahead, but the strongest organizations remain focused on their mission, are proactive, and continue moving forward with purpose.”

Robby Vanrijkel, National Nonprofit & Education Practice Co-Leader at BDO USA

BDO also released a separate look at colleges and universities, where 82% reported growth in their most recent fiscal year, down from 92% in 2025. The firm says it will publish four more snapshots in November, on public charities, health and human services organizations, grantmakers and associations.

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501c3.help wrote this story from the sources listed with it, not from material an organization sent. Our editors approved it on Oct. 27, 2026. Stories in The Nonprofit Herald are free, and nothing is asked in return. Editorial rules.

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