New Year, New Thinking: 3 Ways Funders Can Increase Impact in 2026 and Beyond

As we look ahead to 2026, funders have an opportunity—and a responsibility—to rethink how we invest in our communities.  While short-term relief and programmatic funding remain important, lasting impact requires a deeper, more strategic approach. Here are three ways funders can shift their investment strategy to boost community well-being in 2026 and beyond. 

Make Upstream Investments 

Lasting change will only come if we work upstream to address root problems and build the foundation for everyone to thrive. Many service nonprofits address downstream impacts, such as homelessness or food instability, but lack the resources to intervene upstream. Upstream interventions include efforts such as community land trusts to prevent displacements, building healthy and affordable housing, or creating community-driven revitalization plans. Upstream investments may take longer to show measurable outcomes, but they build the conditions for long-term success.   

Funders tackling systems change, policy innovation, and community-level improvements in the Vital Conditions can help ensure that fewer families fall into crisis, and more residents have the tools they need to thrive.  

Invest with a Generational Mindset 

Generational inequities cannot be solved with one-year grants or one-off pilot programs. Challenges shaped by decades of disinvestment require long-term commitment, patience, and partnership. A generational mindset means moving beyond short funding cycles and instead investing in sustained community progress. This could include multi-year commitments to neighborhood revitalization efforts, long-term partnerships with organizations serving children and families, or pooled funding that supports place-based initiatives over time. In this case, time is an asset that funders can use to multiply impact.   

Partner with Communities 

Rather than relying solely on top-down approaches, funders can increase their impact by working alongside community organizations and residents as true partners. This means listening first, sharing decision-making power, and trusting local expertise. Learned experience, like what has worked in other places, combined with lived experience from community members can be combined into solutions that are both likely to succeed as well as meet local needs and context.  Partnership also means support beyond the grant—for example, supporting capacity-building opportunities so community organizations can lead effectively and sustainably.  

Conclusion  

How an investment is made can matter as much as its dollar value. Funders that support upstream interventions, partner with communities, and commit to long-term investments can help create communities where everyone thrives. Funders willing to work differently will make an impact felt long after their initial investments.