What to Leave Behind: Outdated Practices Philanthropy Needs to Retire in 2026

Dear nonprofit leaders and fundraising professionals,

Every year, philanthropy talks about transformation, but very little changes. We write bold mission statements, host equity conversations, create new task forces, and reissue the same DEI commitments we made the year before. Meanwhile, nonprofits, especially LGBTQIA+ organizations, continue operating under outdated systems that drain capacity, restrict innovation, and reinforce inequity.

If 2026 is going to be the year philanthropy moves from intention to action, then we need to get honest about the practices that no longer serve us. Below are the habits, systems, and norms the sector must retire (both funders and nonprofits) if we want a healthier, more equitable philanthropic ecosystem.

What FUNDERS Must Leave Behind in 2026

1. Restricted Funding That Chokes Impact

Restricted grants communicate one thing: We don’t trust you. And for LGBTQIA+ organizations, especially small, community-rooted Queer, Trans, and BIMPOC-led orgs, this restriction is a death sentence.

In 2026, funders must leave behind project-specific funding that forces nonprofits into financial gymnastics. General operating dollars aren’t “nice to have,” they are the only way underfunded communities survive.

Retire: “We only fund direct services.”
Replace with: “We fund the infrastructure that makes direct services possible.”

2. One-Year Grants That Keep Nonprofits in Crisis Mode

Annual grants create annual panic. When funding disappears after 12 months, organizations can’t hire sustainably, plan strategically, or build the long-term programs funders say they want.

Multi-year funding isn’t generosity: it’s stability.
It’s equity.
It’s respect.

If funders want innovation, they must invest like they expect nonprofits to be around long enough to deliver it.

3. A Thousand Different Grant Applications

If we can create standardized tax forms, medical forms, and FAFSA… we can standardize grant applications.

Nonprofits (especially Queer organizations with tiny staff) waste weeks rewriting the same answers in different formats and character counts.

Regional grant collaboratives and community foundations: 2026 is the year to push for a shared application.

Funders: If you require unique questions, ask yourself why.

And if the answer is “because we always have,” it’s time to let it go.

4. Funding Without Relationship

The biggest myth in philanthropy is that grants are awarded solely on merit.
They’re not.
They’re awarded through relationships.

Funders who operate like vending machines (“submit your form and wait”) are upholding systems that favor big organizations with professionalized development teams.

Funders must leave behind passive, distant grantmaking and instead:

• Build long-term relationships with grantees

• Offer feedback and accessibility

• Co-create solutions instead of dictating terms

• Ask nonprofits what they need, not what fits into the funder’s branding

And nonprofits must stop blindly applying without a relationship first (more on that below).

5. DEI Optics Without DEI Investment

If your foundation posts statements about supporting Queer and Trans communities but your grant portfolio tells a different story, that is the outdated practice to retire.

2026 is the year funders must:

• Track how much goes to LGBTQIA+ orgs

• Prioritize TGNC, BIMPOC-led organizations

• Fund joy, art, advocacy, culture, care, not just “crisis”

• Stop funding harmful institutions at the same levels they fund Queer nonprofits (or more)

Representation matters.
Money matters more.

What NONPROFITS Must Leave Behind in 2026

Nonprofits are not exempt. We also cling to outdated habits that drain resources and reinforce scarcity, especially Queer organizations that have been forced to operate in survival mode for decades.

Here’s what we must retire:

1. Blindly Applying for Every Grant in Sight

Applying without a relationship is the nonprofit version of cold-calling your ex: exhausting, demoralizing, and unlikely to work.

In 2026, nonprofits must shift from “chasing open calls” to:

• Building relationships before applying

• Prioritizing funders aligned with mission, values, and community

• Saying no to grants that pull you off-mission or strain capacity

• Investing time where the ROI is realistic

A strong relationship is worth more than ten cold applications.

2. Over-Indexing on Government Grants

This is especially critical for LGBTQIA+ nonprofits.

Government grants:

• Are slow

• Are restricted

• Often reimburse instead of fund upfront

• Are vulnerable to political shifts

• Require compliance that can drown small orgs

2026 is the year to diversify:

• Individual donors

• Monthly giving

• Peer-to-peer fundraising

• Queer community giving

• Small business partnerships

• Corporate ERG engagement

• Foundation relationships built over time

Government funding should be one tool, not the entire toolbox.

3. Working From Scarcity Instead of Strategy

Scarcity says:
“We can’t do that.”
“We have no capacity.”
“We just need one big grant.”

Strategy says:
“What’s mission-aligned?”
“What’s sustainable?”
“What gets us the most impact for the least stress?”

Leave behind scarcity spirals that keep orgs small. Enter a year of intentional, aligned, values-driven growth.

4. Ignoring Data Because It Feels Too Overwhelming

Small Queer orgs often dismiss data collection as too complicated. But funders increasingly want:

• Demographic data

• Program impact data

• Geographic data

• Donor data

In 2026, nonprofits must adopt simple, lightweight systems for:

• Capturing stories

• Measuring outcomes

• Understanding who your programs actually reach

• Tracking LGBTQIA+ intersections (race, gender identity, age, disability, etc.)

Data doesn’t replace narrative, it strengthens it.

5. Pretending Pride Is a Strategy

For Queer and ally nonprofits alike:

Pride is a moment.
Your engagement with LGBTQIA+ communities must be a practice.

What to retire:

• “Happy Pride” marketing with no follow-through

• Rainbow logos without internal policy change

• One-off Pride events with no pipeline

• Asking LGBTQIA+ people for labor without compensation

• Acting like Queer communities disappear July 1

What to adopt:

• Year-round outreach

• Year-round fundraising

• Year-round volunteer engagement

• Year-round visibility

• Year-round relationship-building
  

And Finally: A Note for Both Funders and Nonprofits

The practices above didn’t become outdated because they stopped working.
They became outdated because Queer communities — and the world! — have evolved.

Philanthropy cannot meet 2026 realities with 2014 strategies. LGBTQIA+ nonprofits cannot achieve liberation with survival-based models.

What we leave behind determines what we’re capable of building.

If funders commit to trust, equity, and long-term investment, and nonprofits commit to strategy, relationships, and intentional growth, then 2026 can be the year our sector finally operates with the abundance Queer communities deserve.

Out with the old.
In with the brave.
Let’s build something new.

Sincerely,

Queers

Queer For Hire provides fundraising support to Queer nonprofits, LGBTQIA+ cultural competency to straight-led organizations and corporations, and individual coaching for Queer professionals.

Learn about our Fundraising Services <here> – we’ll lead or support your fundraising efforts, whether you need general support or want to focus on raising money from and for the LGBTQIA+ community.

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