Jump To Close < Back to the full 2027 report on Top Risks Beyond the next grant cycle: Building capacity, trust and resilience in the nonprofit sector 5 min read 2027 Executive Perspectives on Top Risks and OpportunitiesNonprofit leaders are being asked to do more with less, and the pressure is testing more than day-to-day operations. Rising costs, constrained funding, workforce challenges and growing expectations from funders and regulators all bear on whether organizations can sustain their missions over time. Protiviti's 2027 findings show leaders responding by strengthening the foundations of resilience: extending capacity through partnerships, equipping people to use AI responsibly, and investing in cybersecurity and data privacy to protect stakeholder trust. Confidence in protecting the organization is stronger than confidence in transforming or responding quickly. Read the nonprofit brief to see how leaders are building capacity beyond the next grant cycle.Explore the 2027 nonprofit insightsWatch the 2027 cross-industry webinar on-demand Where nonprofit leaders see the greatest growth opportunities over the next two to three yearsNonprofit leaders overwhelmingly see partnerships as their strongest path forward. Collaborations with peer organizations, funders, technology providers and shared-service arrangements extend capacity without significant new investment, while the main goal remains stable, diversified funding and doing more with it. 36 % see significant opportunities to grow revenue. 84 % see significant opportunities to expand strategic alliances and partnerships. 43 % see significant opportunities to grow beyond their headquarters' domestic market. Explore featured solutions and industries Building capacity beyond the next grant cycle depends on a skilled workforce, responsible AI and strong cyber and privacy protections. These capabilities help nonprofit leaders protect stakeholder trust while extending their reach. People and ChangeAlign people and business strategies to attract and retain talent, manage change and build engaging employee experiences that support mission delivery.Learn more Artificial Intelligence (AI)Prioritize, build and embed AI in real workflows, with governance, security and change enablement that help teams adopt it responsibly and deliver value.Learn more CybersecurityProtect sensitive data and critical assets across every layer of the organization, from identity to incident response, so stakeholder trust stays intact.Learn more Nonprofit ConsultingStrengthen governance, manage risk, improve performance and modernize technology so mission-driven organizations can stay focused on maximizing impact.Learn more People and ChangeAlign people and business strategies to attract and retain talent, manage change and build engaging employee experiences that support mission delivery.Learn more Artificial Intelligence (AI)Prioritize, build and embed AI in real workflows, with governance, security and change enablement that help teams adopt it responsibly and deliver value.Learn more CybersecurityProtect sensitive data and critical assets across every layer of the organization, from identity to incident response, so stakeholder trust stays intact.Learn more Nonprofit ConsultingStrengthen governance, manage risk, improve performance and modernize technology so mission-driven organizations can stay focused on maximizing impact.Learn more Previous Article Next Article Get more Top Risks insights Discover our full catalog of insight briefs for additional research findings and expert commentary related to the 2027 report on Top Risks and Opportunities. Insights by industry Insights by organizational role Insights by industry Aerospace & Defense CPG & Retail Energy & Utilities Financial Services Healthcare Higher Education Manufacturing & Distribution Private Equity Technology, Media & Telecommunications Insights by organizational role Finance Teams Information Security Teams Internal Audit Teams Operations Teams Technology & Data Teams FAQs + EXPAND ALL Where do nonprofit leaders see the greatest growth opportunities? + Partnerships lead by a wide margin: 84% of nonprofit leaders see significant opportunity to expand their ecosystem of strategic alliances and partnerships, compared with 43% for geographic expansion and 36% for revenue potential. Collaborations with peer organizations, funders, technology providers and shared-service arrangements let nonprofits access expertise and share resources without major new investment. The core goal remains stable, diversified funding, along with stronger donor relationships and less dependence on any single source. What are the top risks for nonprofit organizations in 2027? + Economic conditions lead at 3.84 on a five-point impact scale, followed by talent acquisition, retention and succession (3.69), resilience to manage an unexpected crisis (3.65), cyber threats (3.64), and privacy compliance and regulatory change (both 3.53). Many nonprofits operate with thin financial cushions, so a funding interruption, technology failure or regulatory issue can quickly push an organization into survival mode. Access to capital and third-party risks also rank in the top 10. How can nonprofits get more value from AI? + Start with people and governance. 57% of nonprofit leaders rank equipping the workforce as a top AI priority, followed closely by improving governance and accountability (53%), ahead of integrating AI with existing processes (35%). Nonprofits operate where auditability, transparency and data stewardship are essential to stakeholder trust, so AI tools need clear safeguards. Grant management, donor reporting, prospect research and compliance monitoring are practical places to free staff time for the mission. Why are nonprofit leaders less confident in their ability to respond to change? + Only 20% of nonprofit leaders report high confidence in their ability to respond with agility, and 20% in their ability to transform, compared with 31% for protecting organizational value. Limited reserves, restricted funding and lean staffing make it hard to move quickly, even when leaders see the need. Protection scores higher because of the sector's long experience safeguarding mission delivery and stakeholder trust. Where are nonprofits investing in 2027? + Human capital management and workforce skilling is the top investment priority at 42%, followed by cybersecurity (35%), data privacy (35%) and business process improvement (34%). Workforce investment covers leadership development, retention and the tools that make work more effective. Security and privacy protect donor, volunteer and community confidence as nonprofits rely on digital platforms and AI, while process improvement reduces administrative burden and staff burnout. Connect with us Zachary S. Unger Zack is a Managing Director in the Business Performance Improvement Solution in Protiviti’s Metro New York Region. Zack serves as the East Region Public Sector Lead and has been at Protiviti for over 15 years. During this time, Zack has supported numerous organizations ... Learn More Subscribe to our thought leadership Get exclusive access to more content and insights to help you stay ahead. 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