Wipfli research shows talent reention and cost of technology are the biggest challenges for nonprofit, government and education organizations.
Across the country, nonprofit, government and education organizations are navigating a landscape marked by constrained funding, workforce shortages and rising technological demands. Yet, as revealed in Wipfli’s latest survey of 299 executive-level leaders, responses to these pressures vary widely by sector.
Key findings include:
- Talent retention: Sixty percent of nonprofit, government and education leaders say attracting and retaining skilled people will be one of their toughest challenges in 2026. This widespread concern reflects ongoing competition for talent and the impact of sector instability on workforce planning.
- Technology costs: Sixty percent cited “cost” as their top technology infrastructure challenge. Budget constraints continue to limit organizations’ ability to upgrade systems, invest in new tools and keep pace with digital transformation.
- AI adoption: Forty-five percent of nonprofits are applying artificial intelligence to automate tasks. While AI is gaining traction, many organizations remain in the early stages of implementation, highlighting a gap between aspiration and execution.
- Financial optimism: Fifty-five percent of government leaders rated their financial optimism 8 to 10, the highest of all sectors. Government organizations are more confident in their financial outlook, while nonprofits and education institutions report greater uncertainty about future stability.
- Cybersecurity incidents: Seventy-five percent of education organizations experienced three or more cybersecurity incidents last year. The prevalence of cyberattacks underscores the urgent need for stronger security measures and ongoing investment in technology safeguards.
Government respondents are the most optimistic about their organizations’ financial stability, while education leaders expressed the least confidence in both current and future outlooks. Technology maturity varies sharply, with nonprofits often lagging their peers in government and education. Nearly three-quarters of education leaders reported multiple cyber incidents in the past year, underscoring the urgency of robust security strategies.
“When people aren’t sure whether their organization will be able to sustain operations or programs, they start asking themselves if they’d be better off somewhere more stable,” said Wipfli partner Brian Gaumont. “That uncertainty can push talented people out of the sector entirely.”
“Cost is often the barrier people name first,” Gaumont said. “But what we see underneath are integration hurdles: outdated systems that don’t talk to each other, limited IT bandwidth, and teams stretched thin just to maintain what they have.”
Integration gaps have real consequences, including increased vulnerability to cyberattacks. Nearly half of nonprofit and government respondents and three-quarters of education respondents said their organizations experienced multiple cyber incidents within the past year.
Despite these challenges, the survey reveals an appetite for innovation and a determination to build resilience. Leaders are exploring new strategies for talent management, financial stability and technology integration, even as they navigate persistent barriers.
Download the full report today to access exclusive data, expert insights and strategies to strengthen your organization’s people, finances and technology readiness.
