Diligent Report: More Than Half of Mission-Driven Organizations Identify Economic or Funding Downturns as a Top Risk

Report also finds 52% of mission-driven boards do not use AI in oversight or strategic decision-making, despite AI modernization ranking as the top investment priority

New York, NY, October 13, 2026 — Mission-driven boards are navigating an increasingly complex governance environment, shaped by financial pressures, rising stakeholder expectations and the growing role of AI, according to the inaugural Governance Outlook 2027 for Mission-Driven Organizations report from Diligent Institute. Boards recognize the need to strengthen strategic oversight but face constraints in time, structures and tools that can make it difficult to turn priorities into action.

“Mission-driven boards recognize the pressures facing their organizations and want to govern more strategically,” said Dottie Schindlinger, Executive Director of the Diligent Institute. “Now, the opportunity lies in translating that understanding into repeatable governance practices, supported by technology that brings the right information and insights together, so directors can focus on strategy, test assumptions and make decisions with greater confidence.”

Financial pressure dominates as a top board risk

• 53% of respondents identify an economic or funding downturn as their top organizational risk, while financial conditions, funding and grants are the most pressing board agenda item for 41% of respondents.
• Budget allocation and fiscal management is identified as the most challenging issue to oversee, at 45%.
• Respondents also point to legislative and regulatory change, cybersecurity, misinformation, reputational damage and rapid technology shifts as interconnected threats that can outpace traditional oversight models.

Boards want more strategic planning—but meetings remain retrospective

• Only 11% of respondents say their board meetings are mostly forward-looking, while 32% describe them as mostly retrospective.
• 49% want more time for strategic planning, and 37% want better tools and processes for managing agendas, board materials, minutes and follow-up actions.
• 43% say their board does not currently conduct scenario planning, while another 29% say it is primarily handled by management with limited board involvement.

AI investment in organizations accelerates, but board adoption lags

• Technology and AI modernization ranks as the leading investment priority, selected by 30% of respondents. AI and digital risks are also among the most pressing board agenda topics, cited by 25% of respondents.
• Yet governance adoption remains limited: 52% say their board does not use AI to support oversight of risks and strategic decision-making. Meanwhile, 26% report minimal or ad hoc use, while only 14% say their board uses AI regularly alongside traditional approaches.
• Just one respondent says AI is fully embedded in board oversight and strategic decision-making.

Six priorities for stronger mission-driven governance

The report outlines six practical actions for boards and executives:

• Rebalance meeting time toward strategic planning and decision-making.
• Establish a more disciplined, full-board risk oversight cadence.
• Make scenario planning a routine governance practice.
• Modernize the processes used to manage agendas, materials, minutes and follow-up.
• Treat board development and evaluation as core governance capabilities.
• Approach AI as both a governance tool and a cross-cutting risk requiring clear guardrails.

The full Governance Outlook 2027 for Mission-Driven Organizations report is available at: https://www.diligent.com/resources/research/mdo-governance-outlook

Methodology

The Governance Outlook 2027 for Mission-Driven Organizations report from Diligent Institute is based on survey responses dating from April - June 2026 of 230 mission-driven organization stakeholders across nonprofit and public sector, including but not limited to board members, executive directors and board secretaries. Respondents were based in North America (73%), Europe (10%), Africa (6%), Australia (6%), New Zealand (2%), Middle East (1%) or other (3%). A full demographic breakdown for survey respondents can be found here.

About Diligent Institute

Diligent Institute informs, educates, and connects leaders to champion governance excellence. We meet this mission through original, cutting-edge research on critical corporate governance issues, certificate programs for corporate leaders, peer networks that convene directors and executives to share best practices, and recognition programs that celebrate governance excellence. Diligent Institute was founded in 2018 as Diligent’s global corporate governance research arm and think tank. Learn more at diligentinstitute.com.

About Diligent
Diligent is the AI leader in governance, risk and compliance (GRC) solutions, helping more than 1 million users and 700,000 board members to clarify risk and elevate governance. The Diligent One Platform gives practitioners, the C-suite and the board a consolidated view of their entire GRC practice so they can more effectively manage risk, build greater resilience and make better decisions, faster. Learn more at diligent.com.

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