You’ve built significant wealth. You’ve created a family office to manage it. But have you established the governance framework needed to protect it? 

Many wealthy families assume that hiring qualified staff and setting up the right legal structures is enough. They quickly discover it’s not. Without clear governance, even the most sophisticated family offices face internal conflicts, strategic drift, and succession challenges that can fracture family relationships and erode wealth across generations. 

Strong governance isn’t about adding bureaucracy. It’s about creating clarity, alignment, and sustainability for your family’s financial future. This article will explore what effective family office governance looks like, why it matters, and how to build a framework that works for your family. 

Understanding Family Office Governance 

Family office governance is your roadmap for decision-making. It defines who makes decisions, how those decisions get made, and what principles guide them. 

Think of governance as the operating system for your family office. It coordinates all the moving parts—investment strategies, tax planning, philanthropic initiatives, and succession plans—into a coherent whole that serves your family’s shared vision. 

Your governance framework should address several key questions. Who has authority over investment decisions? How will you handle conflicts between family members? What happens when the next generation wants to take the family in a different direction? How will you balance individual needs with collective goals? 

“Without governance there is a lack of clear roles and decision making protocols which can lead to communication break downs and lack of transparency.” Kris Marney – Partner, Advisory and Family Office Services Leader 

The Core Elements of Effective Governance 

A robust governance structure rests on several foundational elements that work together to keep your family office running smoothly. 

Clear Decision-Making Authority 

Your framework must specify who makes what decisions. Does the family patriarch retain final say on all major investments? Do adult children have voting rights? What role do non-family professionals play in strategic decisions? 

Ambiguity here creates paralysis. When everyone thinks someone else should be making a decision, nothing happens. When multiple people think they have authority over the same area, conflict erupts. 
 

Defined Roles and Responsibilities 

Every family member involved in the family office needs a clear understanding of their role. Some family members serve on investment committees. Others focus on philanthropic initiatives. Still others may have no formal role but expect regular updates on family assets. Document these roles explicitly. Write them down. Review them annually.  

Transparent Communication Channels 

You can’t govern effectively without good information flow. Establish regular family meetings, reporting schedules, and communication protocols that keep everyone informed without overwhelming them with details. Different family members need different levels of information. Your governance structure should account for this by creating tiered communication systems. 

Succession Planning 

Your governance framework must address how leadership transitions from one generation to the next. This includes not just who takes over, but how you prepare them for that responsibility. 

Learn more about our Family Office Services

Common Governance Pitfalls to Avoid 

Many family offices stumble over the same obstacles. You can avoid them by staying alert to these common mistakes. 

Static Governance Models 

Your family changes. Your wealth grows or contracts. Market conditions shift. Your governance framework must evolve alongside these changes. Review your governance structure every two to three years at minimum. After major family events—marriages, divorces, births, deaths—revisit it sooner.  

Confusing Family and Business Roles 

Family members often wear multiple hats. Someone might be a son, a shareholder, and an employee of a family business simultaneously. Your governance framework needs to distinguish clearly between these roles and prevent conflicts of interest. 

Avoiding Difficult Conversations 

Governance breaks down when families postpone hard discussions. You need to address potential conflicts head-on—before they become actual conflicts. This means having frank conversations about money, values, competence, and family dynamics. It’s uncomfortable. It’s also necessary. 

Inadequate Professional Support 

Some families try to handle complex governance issues without proper guidance. This often leads to gaps in their framework that create problems later. You need the right advisors helping you build and maintain your governance structure. 

Building Your Governance Framework 

Creating effective governance starts with honest assessment. Where does your family office stand today? What works well? What causes friction or confusion? 

• Gather input from all stakeholders. Family members have different perspectives based on their generation, involvement level, and relationship to family wealth. These perspectives all matter. 
• Define your family’s shared purpose and values. What does your family stand for? What do you want your wealth to accomplish? Your governance structure should reflect and reinforce these core principles. 
• Document everything. Verbal agreements fail when memories differ or circumstances change. Put your governance policies, decision-making processes, and conflict resolution procedures in writing. 
• Start simple and add complexity as needed. You don’t need a corporate-style governance structure if you’re a small family with straightforward needs. But you should build a framework that can scale as your family and assets grow. 

How BPM Supports Your Family Office Governance 

At BPM, we understand that every family office is unique. Your governance needs depend on your family dynamics, wealth complexity, and long-term objectives. We work alongside you to design governance frameworks that bring clarity without rigidity, structure without bureaucracy. 

Our team helps you facilitate the difficult conversations that strong governance requires. We bring an outside perspective that can help family members hear each other more clearly and find common ground on contentious issues. We’ve seen what works—and what doesn’t—across numerous family offices, and we apply those insights to your specific situation. To discuss how we can help you build a framework that protects your wealth and preserves family harmony for generations to come, contact us.  

If your business has significant California operations, maintained a presence in the state over the past decade, or acquired a California-based company, you may soon receive a letter from the California State Controller’s Office (SCO) that demands immediate attention.  

Starting in mid-to-late November 2025, the SCO will begin mailing outreach letters to approximately 4,000 businesses identified as potentially holding unreported unclaimed property—and this represents just the first wave of a multi-year compliance initiative extending throughout 2026. 

What You Need to Know 

California is launching an aggressive outreach campaign targeting businesses with potential unreported unclaimed property. The state’s Voluntary Compliance Program (VCP) offers a complete waiver of interest (which accrues at 12% annually) for businesses that proactively address past compliance gaps.  

While the program requires substantial effort—including a 10-year records review, mandatory training, and due diligence—the financial benefits can be significant, often eliminating six or seven-figure interest liabilities. Businesses should also remember that they may have unclaimed property due to them from the state, which could help offset compliance costs.  

Organizations with California operations, especially those with inconsistent filing histories or recent acquisitions, should assess their exposure now, whether or not they receive an outreach letter. 

Understanding the Financial Stakes and Opportunities 

This isn’t a typical regulatory notice you can file away. For many businesses, the financial stakes are substantial, with potential interest liabilities reaching six or seven figures. But California’s Voluntary Compliance Program offers a strategic path forward that can eliminate these exposures entirely while bringing your organization into full compliance with state unclaimed property laws. 

It’s also worth noting that while you may owe unclaimed property to California, your business may simultaneously have unclaimed property held by the state that belongs to you. Conducting a search for unclaimed property due to your organization could help offset some of the costs associated with achieving compliance. 

Understanding California’s Heightened Focus on Unclaimed Property 

California has steadily increased its enforcement posture around unclaimed property reporting over the past several years. Since 2021, the state has required businesses to answer specific questions about unclaimed property filings directly on their California income tax returns (Forms 100, 100W, and others). These questions ask whether your business has filed unclaimed property reports and how much property was remitted. 

The SCO now has direct access to this tax return information, creating a powerful data-matching capability to identify businesses that may have reporting obligations but haven’t filed. This November mailing represents the SCO’s most aggressive outreach effort to date, targeting the largest potential holders first before expanding to additional business segments in subsequent waves. 

The Financial Case for Voluntary Compliance 

California law imposes interest on unreported unclaimed property at 12 percent per year—a rate that can quickly transform a manageable compliance gap into a significant financial liability. For a business with $500,000 in unreported property dating back five years, the accumulated interest alone could exceed $300,000. 

The Voluntary Compliance Program was specifically designed to incentivize businesses to come forward proactively. Holders who successfully complete the VCP receive a full waiver of all accrued interest on past-due property. This single benefit can eliminate years of accumulated liability, making the program one of the most valuable compliance opportunities available to California businesses. 

Who Should Be Paying Attention 

While the SCO’s outreach targets businesses across various industries and sizes, certain organizations face higher risk profiles: 

• California-domiciled businesses that may have accumulated reportable property over multiple years without establishing formal compliance processes 
• Companies with substantial California operations that maintain payroll, vendor relationships, or customer accounts in the state 
• Businesses that acquired California-based entities within the past 10 years, potentially inheriting unclaimed property obligations along with assets 
• Organizations with inconsistent filing histories or those that have never filed California unclaimed property reports despite having state nexus 

If your business falls into any of these categories, now is the time to conduct a proactive review—whether or not you receive an SCO outreach letter. 

Learn more about our State and Local Taxes Services

Navigating the VCP Process: Key Requirements and Timelines 

The California VCP follows a structured process with specific deadlines and obligations. Understanding these requirements upfront will help you assess whether the program makes sense for your organization. 

Eligibility Criteria 

Before applying, confirm your business meets the basic eligibility requirements. You cannot participate in the VCP if your organization: 

• Is currently under SCO audit or has received notice of an impending audit 
• Is subject to civil or criminal prosecution related to unclaimed property compliance 
• Has received an interest assessment within the past five years that remains unpaid
• Has previously participated in the VCP and received an interest waiver within the past five years 

One important exception: businesses seeking to resolve unclaimed property liabilities related to a recent acquisition or merger may still qualify for the program under certain circumstances, even if they’ve previously participated. 

The VCP Timeline 

Once your application is approved, California requires strict adherence to program deadlines: 

1. Complete Mandatory Training: All participating staff must complete the SCO’s two-hour online training session, which covers California’s unclaimed property requirements and reporting obligations. 

2. Conduct a Comprehensive Records Review: Your business must examine its books and records for at least the past 10 years to identify any unclaimed property. This lookback period means you’ll need to gather and analyze a substantial volume of historical data. 

3. Perform Due Diligence: If you identify unclaimed property, you must send due diligence notices to the property owners, giving them the opportunity to reclaim their assets before the state takes custody. 

4. File Your Notice Report: After allowing at least 30 days for owner responses, submit a “notice” report to the SCO listing all unresolved property. Importantly, no remittance is required at this stage. 

5. File Your Remit Report: Between seven and seven-and-a-half months after submitting your notice report, you must file your final “remit” report and transfer the identified property to the state. 

Strategic Considerations: Beyond Immediate Compliance 

While the interest waiver represents the most tangible benefit of California’s VCP, participating in the program offers broader strategic advantages that shouldn’t be overlooked. 

Building Sustainable Compliance Infrastructure 

Successfully completing the VCP requires developing robust processes for identifying, tracking, and reporting unclaimed property. These systems don’t just satisfy California’s requirements—they create a foundation for managing unclaimed property obligations in the dozens of other states where your business may have reporting responsibilities. Many organizations discover that the investment in VCP compliance pays dividends by preventing future non-compliance issues across multiple jurisdictions. 

Managing Audit Risk Proactively 

The SCO retains audit authority even after VCP completion, and any property discovered during a subsequent audit that wasn’t disclosed through the program may still be subject to interest and penalties. This reality underscores the importance of conducting a thorough, accurate records review during your VCP participation. A half-hearted compliance effort can actually increase your risk rather than reduce it. 

Protecting Transaction Value 

For businesses contemplating mergers, acquisitions, or other strategic transactions, unaddressed unclaimed property liabilities can emerge as unexpected complications during due diligence. Buyers increasingly scrutinize unclaimed property compliance as part of their risk assessment, and material exposures can affect transaction valuations or deal terms. Resolving California obligations through the VCP can eliminate these concerns before they impact transaction discussions. 

If You Receive an Outreach Letter: Immediate Action Steps 

The arrival of an SCO outreach letter should trigger a prompt, structured response: 

Assess Your Actual Obligations  

Not every business that receives a letter will ultimately have reportable property, but the letter itself signals that California has identified your organization as a potential holder. Conduct an initial assessment to determine whether you’ve maintained the types of accounts, payments, or relationships that typically generate unclaimed property. 

Evaluate VCP Eligibility 

Review your organization’s current status against the eligibility criteria. If you’re already under audit or investigation, the VCP isn’t available, but if you’re eligible, moving quickly can preserve your access to the program’s benefits. 

Consider Your Compliance History Businesses that have never filed California unclaimed property reports or have filed inconsistently should treat the outreach letter as a priority. The combination of potential back-year liability and 12 percent annual interest creates significant exposure that the VCP can resolve. 

Document Your Decision Process 

Whether you decide to participate in the VCP or conclude that your business doesn’t have California reporting obligations, document your analysis and the basis for your determination. This documentation becomes important if the SCO follows up with additional inquiries or initiates an audit in the future. 

The Broader Unclaimed Property Landscape 

While California’s current outreach initiative focuses specifically on VCP enrollment, it’s part of a national trend of states intensifying their unclaimed property enforcement efforts. According to the National Association of Unclaimed Property Administrators, states collectively hold more than $70 billion in unclaimed property, and they’re increasingly sophisticated in their efforts to identify non-compliant holders. 

Many states have established their own voluntary compliance programs, often modeled after California’s approach but with varying benefits and requirements. Additionally, states are collaborating more effectively through information-sharing initiatives and coordinated audit programs. A compliance gap in California may indicate potential issues in other jurisdictions where your business operates. 

Taking Action: Your Next Steps 

Whether your organization receives an SCO outreach letter or not, California’s intensified focus on unclaimed property should prompt a proactive response. Consider these strategic steps: 

1. Conduct a compliance health check to assess your current unclaimed property processes and identify potential gaps 

2. Review your California nexus and operations to determine your level of exposure to state reporting requirements 

3. Evaluate recent acquisitions to understand whether you’ve assumed unclaimed property obligations through business combinations 

4. Assess your readiness to respond quickly if you do receive an outreach letter in the coming months 

The November 2025 outreach represents California’s opening move in what promises to be a sustained, multi-year compliance initiative. Organizations that respond proactively—establishing robust processes, resolving past-year obligations, and positioning themselves for ongoing compliance—will be better positioned to manage both the immediate requirements and the evolving regulatory landscape ahead. 

Get Strategic Guidance on California Unclaimed Property Compliance 

BPM’s State and Local Tax professionals work closely with businesses navigating California’s unclaimed property requirements, from initial compliance assessments through VCP participation and ongoing reporting obligations. We can help you evaluate your exposure, understand your options, and develop a strategic response that protects your organization while taking advantage of available programs and benefits. 

Contact us today to discuss how California’s Voluntary Compliance Program might apply to your business and what steps you should take before year-end to position your organization for successful compliance in 2026 and beyond. 

As you prepare your nonprofit for 2026, you’re facing a convergence of unprecedented challenges and opportunities. From financial pressures and workforce burnout to digital transformation and heightened accountability demands, the sector stands at a critical inflection point. Understanding these evolving dynamics (and developing strategic responses) will determine which organizations thrive versus merely survive in the year ahead. 

This outlook examines the five nonprofit industry trends shaping the nonprofit landscape and provides actionable guidance to help you navigate this complex terrain with confidence. 

Top 5 Nonprofit Industry Trends Impacting Nonprofits in 2026 

1. Financial Instability Creates an Urgent Need for Revenue Diversification 

The financial ground beneath nonprofits continues to shift dramatically. If your organization relies heavily on government grants or traditional donations, you’re likely feeling the squeeze from multiple directions. 

Government Funding Volatility Takes Center Stage 

With two-thirds of nonprofits dependent on at least one government grant, the October 2025 federal shutdown served as a stark reminder of funding vulnerabilities. Your organization may be among those that would struggle to cover expenses if government funding disappeared. Ongoing uncertainty around changing agendas has also led to frozen assets and the stoppage of government funding.  

Individual Giving Patterns Shift Dramatically 

While total fundraising increased 3.6% in early 2025, donor numbers actually fell. You’re likely raising more money from fewer supporters—a dangerous trend when average donor retention rates have plummeted to just 42.6%. This concentration of revenue sources amplifies your risk exposure. 

Rising Costs Compound the Challenge 

Many nonprofits lack sufficient funds to deliver current programs, and most anticipate increased service demand in 2026. Your organization faces difficult choices: 

• Drawing down reserves meant for emergencies 
• Reducing staff when you need them most 
• Scaling back services when communities need them more than ever 

2. The Workforce Crisis Reaches a Breaking Point 

Your people are your mission delivery system, but that system is under extreme stress. The numbers tell a sobering story about the human cost of nonprofit work. 

Burnout Becomes Endemic 

When 95% of nonprofit leaders express concern about burnout and only 45% of employees plan to stay in their current roles, you’re facing more than a retention challenge; you’re confronting an existential threat to organizational capacity. Your staff members juggle multiple responsibilities beyond their job descriptions while watching peers in other sectors earn significantly more for less stressful work. 

Compensation Gaps Widen 

Consider this reality: 22% of nonprofit employees earn below the ALICE threshold, struggling to make ends meet while serving others. The impact hits communities of color disproportionately, with 34% of Black nonprofit employees and 35% of Hispanic employees facing financial hardship. When your team members can’t afford basic necessities, mission sustainability becomes impossible. 

Leadership Succession Looms Large 

As Baby Boomer executives approach retirement, you may wonder who will step into these critical roles. Many mid-level managers lack comprehensive experience in areas like: 

• Federal funding navigation 
• Budget creation and management 
• Human resources complexities 
• Public representation and advocacy 

Without intentional succession planning, your organization risks leadership vacuums at the worst possible time. 

3. Digital Transformation and AI Move from Optional to Essential 

Technology adoption, particularly artificial intelligence, no longer represents a nice-to-have capability—it’s becoming fundamental to competitive positioning and mission effectiveness. 

AI Amplifies Your Capacity 

Forward-thinking nonprofits are deploying AI as a force multiplier across multiple functions: 

• Creating hyper-personalized donor communications that move beyond basic segmentation 

• Using predictive modeling to identify lapse risks and upgrade opportunities 

• Automating content generation for consistent messaging 

• Building unified data ecosystems connecting fundraising, finance, and impact measurement 

Donor Expectations Mirror Commercial Experiences 

Your supporters expect the same personalized, seamless experiences they receive from Netflix or Amazon. Basic email segmentation no longer suffices when donors anticipate communications tailored to their specific interests, giving history, and engagement preferences. Organizations failing to meet these expectations face higher attrition rates. 

Hybrid Engagement Models Become Permanent 

The pandemic-era shift to digital hasn’t reversed—it’s evolved. Your stakeholders now expect: 

• Events offering both in-person and virtual participation options 
• Livestreamed galas with interactive online components 
• Virtual donor engagement opportunities that expand geographic reach 
• Accessibility features that include rather than exclude participants 

4. DEI Initiatives Face Political and Legal Headwinds 

Your commitment to diversity, equity, and inclusion faces new complexities as political scrutiny intensifies and legal landscapes shift. 

Federal Policy Changes Create Compliance Challenges 

Executive orders restricting DEI requirements in federally funded programs create both direct and indirect impacts. If you receive federal funding, you’re navigating: 

• Prohibitions on race-based criteria in grant applications 
• Restrictions on DEI statement requirements 
• Increased scrutiny from conservative watchdog groups 
• Complex compliance rules affecting university and government partnerships 

Funders Maintain DEI Expectations 

Despite political pressures, 82% of funders still request DEI metrics in funding applications. Foundations prioritize organizations demonstrating: 

• Inclusive board leadership reflecting community demographics 
• Equitable community engagement practices 
• Transparent diversity progress reporting 
• Authentic representation throughout organizational levels 

Strategic Adaptation Becomes Critical 

Many nonprofits are shifting language while maintaining core commitments, replacing race-based terminology with equity-focused language that accomplishes similar goals. State-level protections in certain regions provide additional flexibility, creating geographic variations in approach. 

5. Transparency and Accountability Demands Intensify 

Stakeholder expectations for organizational transparency have evolved from basic compliance to comprehensive accountability across all operations. 

Trust Serves as Your Foundation 

Every relationship your nonprofit maintains—with donors, beneficiaries, partners, and communities—rests on trust. Lack of transparency creates cascading consequences: 

• Donor skepticism about fund usage 
• Difficulty attracting talented board members and staff 
• Reduced advocacy credibility 
• Missed opportunities for organizational improvement 

Financial Disclosure Goes Beyond Compliance 

Meeting legal requirements represents just the starting point. Best-in-class organizations now provide: 

• Detailed breakdowns of revenue sources and expenditures in accessible formats 
• Visual representations of financial data through infographics and dashboards 
• Clear allocation details showing program versus administrative expenses 
• Proactive publication of financial documents on organizational websites 

Impact Measurement Becomes Non-Negotiable 

Your donors want tangible evidence connecting their support to real-world outcomes. They expect: 

• Success stories tied directly to their contributions 
• Quarterly updates featuring financial and program highlights 
• Annual briefings discussing performance against stated goals
• Opportunities to provide feedback and shape future directions 

Learn more about our Nonprofit Industry Solutions

How BPM Supports Your Nonprofit’s Success 

At BPM, we understand the unique challenges facing nonprofit organizations in 2026. Our dedicated nonprofit practice combines deep sector knowledge with practical solutions designed to strengthen your financial foundation, enhance operational efficiency, and amplify your mission impact. 

We partner with nonprofits to: 

• Develop sustainable financial strategies and diversified revenue models 
• Implement technology solutions that streamline operations and enhance donor engagement 
• Navigate complex compliance requirements while maintaining mission focus 
• Build transparent reporting systems that satisfy stakeholder expectations 
• Create succession plans and leadership development frameworks 

Our approach goes beyond traditional accounting services. We serve as strategic advisors who understand that your success isn’t measured solely in financial terms but in lives changed and communities transformed. 

Take Action Today 

The trends shaping 2026 require decisive action now. Whether you’re grappling with financial sustainability, workforce challenges, or digital transformation, you don’t have to navigate these complexities alone. 

Connect with BPM’s nonprofit team to discuss how we can support your organization’s unique needs and help you build a stronger foundation for mission success. Contact us at [contact information] to schedule a conversation about your 2026 strategic priorities. 

Together, we can transform today’s challenges into tomorrow’s opportunities for greater impact. 

The consumer industry stands at a pivotal moment. As market dynamics shift and consumer expectations evolve, companies face mounting pressure to transform their business models while protecting margins and building resilience.  

Success in this environment requires more than incremental adjustments. It demands fundamental changes to how organizations operate, engage customers, and create value. The companies that thrive will be those that embrace transformation as an ongoing capability rather than a one-time initiative. 

Six Trends Driving the Consumer Sector Next Year 

1. Direct-to-Consumer and Experience Commerce 

The migration from wholesale-first to direct-to-consumer models continues to accelerate as brands seek greater control over customer relationships and data. This shift reflects a fundamental change in how companies create and capture value. 

Leading consumer companies are building integrated commerce technology stacks that unify online and offline experiences, enabling seamless shopping across all touchpoints. The focus has moved beyond simple transactions to creating repeatable, high-value experiences through subscription services and membership programs that drive lifetime customer value. 

These models provide the dual benefit of predictable revenue streams and rich behavioral data that inform product development and marketing strategies. The challenge lies in balancing DTC growth with traditional wholesale partnerships while managing the operational complexity of fulfillment, customer service, and returns across multiple channels. 

2. Supply-Chain Resilience, Tariff Mitigation Strategies, and Nearshoring 

The era of prioritizing lowest-cost sourcing above all else has ended. Today’s consumer companies recognize that supply-chain resilience and agility create competitive advantages worth paying for. 

Strategic shifts include diversifying supplier bases to reduce concentration risk, regionalizing production to shorten lead times, and investing in visibility technologies such as digital twins and real-time inventory systems. These investments help companies anticipate disruptions, respond faster to demand changes, and reduce working capital tied up in safety stock.  

Tariff mitigation requires equal attention alongside these operational improvements. Some companies are conducting comprehensive tariff engineering reviews—analyzing product classifications, exploring duty drawback programs, and leveraging foreign trade zones to defer or reduce customs costs.  

Country-of-origin planning has become a strategic imperative, with manufacturers evaluating how production footprint decisions affect tariff exposure across their entire product portfolio. First-sale rules, bonded warehousing, and temporary import programs offer additional levers for companies willing to invest in customs expertise.  

Nearshoring and friendshoring strategies gain momentum as companies weigh total cost of ownership—including speed to market, quality control, and risk mitigation—against simply chasing the lowest per-unit manufacturing cost. 

3. Data and Privacy-First Personalization 

The deprecation of third-party cookies and the expansion of privacy regulations fundamentally change how consumer companies understand and reach their customers. Success now depends on earning consumer trust and consent to collect first-party data. 

Organizations must invest in customer data platforms (CDPs) that consolidate consented data from multiple touchpoints, creating unified customer profiles while respecting privacy preferences. Transparent opt-in mechanisms and clear value exchanges (exclusive access, personalized recommendations, or special pricing) encourage consumers to share their data willingly.  

Companies that achieve privacy-first personalization will have a sustainable competitive advantage as competitors struggle to replicate the depth of customer understanding that can only come from direct, consented relationships. 

4. Agile Innovation and Product Differentiation 

Consumer preferences evolve faster than ever, and traditional product development cycles cannot keep pace. Companies are adopting agile innovation models that enable rapid prototyping, testing, and scaling of new products and concepts. 

Limited-edition releases and micro-brand strategies allow organizations to test market response with controlled risk. Fast feedback loops from DTC channels provide real-time insights that inform iteration decisions. This approach requires: 

• Cross-functional teams empowered to make decisions quickly 
• Flexible manufacturing partnerships that accommodate short runs 
• Digital infrastructure that supports rapid go-to-market execution 
• Cultural acceptance of learning through controlled failures 

Organizations that build these capabilities can outmaneuver slower competitors and capture emerging trends before they reach saturation. 

5. Pressure and Channel Economics 

Rising input costs, promotional intensity, and channel complexity create a perfect storm of margin pressure. Consumer companies must become more sophisticated in how they protect profitability without eroding brand equity. 

Strategic responses include developing more nuanced price architecture that captures value from different customer segments, implementing dynamic promotion strategies informed by real-time competitive data, and rationalizing SKU portfolios to focus resources on the highest-performing products.  

Automation in order management, fulfillment, and customer service reduces per-transaction costs while improving speed and accuracy. These operational improvements, combined with strategic pricing and assortment decisions, help maintain healthy margins in a challenging environment. 

Learn more about our Consumer Business Industry Solutions

Strategic Imperatives for Consumer Industry Leaders 

To navigate these trends successfully, consumer company leaders should prioritize several key actions: 

• Invest in integrated technology platforms that enable omnichannel commerce and unified customer data management 
• Embed sustainability into core product development processes and supply-chain decisions, measuring impact transparently 
• Build supply-chain resilience through diversification, regionalization, and advanced visibility tools 
• Develop capabilities for rapid innovation cycles that allow testing and learning at lower risk 
• Implement sophisticated pricing and promotion strategies that preserve margins while maintaining competitive positioning 

How BPM Can Help 

BPM works alongside consumer companies to address these complex challenges through our integrated services in accounting, tax, audit, and advisory. Our professionals help clients optimize their tax structures for DTC expansion, implement financial controls for new business models, evaluate the financial implications of supply-chain shifts, and develop reporting frameworks for sustainability initiatives. 

From transaction advisory for nearshoring decisions to operational assessments of omnichannel infrastructure, BPM provides the financial and strategic guidance consumer companies need to transform with confidence. Contact us to discuss how we can support your organization’s growth and transformation initiatives. 

On November 6, 2024, San Francisco voters decisively approved Proposition M, implementing significant changes to the city’s business tax system aimed at creating a fairer and more resilient structure. The measure passed with approximately 69% of the vote, reflecting strong support across the political spectrum for reforming business taxes to better suit the modern economic landscape.

Implications for Businesses

2025

Businesses operating in or generating revenue from San Francisco must prepare for the implementation of the new tax structures effective January 1, 2025. Companies are advised to:

• Review and adjust financial strategies to accommodate potential increases in tax liabilities.
• Assess the impact of shifts in tax calculation methods, particularly the emphasis on sales over payroll.
• Seek professional tax advice to navigate the complexities of the new system and ensure compliance.

As Proposition M reshapes the fiscal landscape, careful planning and adaptation will be crucial for businesses to mitigate potential impacts and leverage any benefits offered by the reforms.

2026

San Francisco businesses should mark their calendars for several important tax and filing deadlines in 2026 related to the city’s new business tax regulations:

• March 2, 2026: First Annual Business Tax filing and Business Registration Renewal deadline under the new rules. Businesses needing an extension must submit a request by this date and pay 110% of the previous year’s tax obligations.
• March 31, 2026: Approximately $10 million in certain permit, license, and other fees will be waived for qualifying businesses.
• November 30, 2026: New extension deadline for Annual Business Tax filings, aligning San Francisco deadlines with California state requirements.

Don’t wait until the March 2026 deadline to understand your new obligations. As San Francisco’s business tax structure transforms in 2025, early preparation is essential. Our SALT team can assess how Proposition M impacts your specific situation, calculate your projected liability under the new system, and develop a compliance roadmap tailored to your business.

Key changes introduced by Proposition M

One of the primary objectives of Proposition M is the simplification of the business tax system. The measure consolidates the existing 14 business tax categories into seven, reducing complexity and making it easier for businesses to comply with tax regulations. This streamlining is expected to decrease compliance hurdles and reduce the administrative burden on businesses, particularly benefiting small enterprises that may lack extensive resources for tax management.

Adjustment of gross receipts tax calculation

Proposition M also revises the calculation of the gross receipts tax, shifting the basis more towards sales and less on payroll expenses. Specifically, the new calculation is based 75% on sales and 25% on payroll, a significant change from the previous structure. This adjustment aims to address the evolving nature of business operations, especially with the rise of remote work and companies generating substantial revenue with minimal physical presence in the city.

Impact on small and large businesses

While the reforms are designed to support vulnerable businesses, the impact varies across different sizes of enterprises:

• Small Businesses: Many small businesses are expected to experience reduced tax burdens or minimal changes due to Proposition M. By decreasing the financial load on these entities, the city hopes to foster local entrepreneurship and sustain the vibrancy of the small business sector.
• Mid-sized and Large Businesses: In contrast, mid-sized and large employers may face significantly increased tax rates, with some seeing their rates double or even quadruple. This substantial increase reflects an effort to ensure that larger corporations contribute a fair share to the city’s revenue, acknowledging their greater capacity to absorb higher taxes.

Expansion of tax base

A notable element of Proposition M is the introduction of city tax liability for businesses with no physical nexus in San Francisco. This means that companies generating revenue from San Francisco residents or activities, even without a physical location in the city, will now be subject to city business taxes. This change recognizes the digital economy’s realities, where businesses can have a significant economic presence without traditional brick-and-mortar establishments.

Learn More About BPM’s State and Local Tax Solutions

Financial projections and revenue implications

According to the Controller for the City and County of San Francisco, Proposition M is projected to reduce city revenue by $40 million during the first three fiscal years due to transitional adjustments. However, starting in 2027, revenues are expected to increase by $50 million annually because of scheduled tax rate increases and the broader tax base. By the fiscal year 2029–2030, the increased revenue is anticipated to fully offset earlier reductions, contributing to a more stable and robust financial outlook for the city.

Broad Support from Political and Business Leaders

The passage of Proposition M garnered widespread support from political figures, business groups, and labor organizations. All major candidates in the city’s mayoral race endorsed the measure, highlighting its significance to San Francisco’s economic future. A pro-Proposition M rally showcased mayoral contenders united in their backing, demonstrating a rare consensus across the political spectrum on the need for tax reform. This collective support underscores the belief that Proposition M will foster a more equitable business environment and bolster the city’s financial health.

Adapting to the modern economic landscape

Proposition M is seen as a response to the changing dynamics of business in an era marked by technological advancements and shifts toward remote work. By aligning the tax system with contemporary business models, the city aims to capture revenue from a diverse array of economic activities while ensuring that taxation is fair and reflective of actual business operations. This approach is intended to create a sustainable fiscal structure that can adapt to future economic developments.

Conclusion

The approval of Proposition M represents a pivotal shift in San Francisco’s approach to business taxation. By overhauling the tax system, the city seeks to balance the need for increased revenue with the goal of fostering an equitable and competitive business environment. The measure’s passage reflects a collective recognition of the necessity to adapt to the evolving economic context, ensuring that the city’s fiscal policies support both its financial stability and the vitality of its business community.

Succession planning keeps many family office leaders awake at night. You’ve spent years building wealth, nurturing relationships, and creating systems that work. Now you face the challenge of passing the torch without dropping it.  

Family Office Succession Planning: Essential Steps to Take 

The stakes are high. Poor succession planning can fracture family relationships, erode wealth, and dismantle decades of careful stewardship. Yet many families delay these conversations until crisis forces their hand. This article will walk you through the essential steps to create a succession plan that protects your family’s legacy while preparing the next generation to lead. 

Start with Honest Conversations About the Future 

You cannot plan for succession without first discussing it openly. Too many families avoid these conversations because they feel uncomfortable or premature. This avoidance creates risk.  

Begin by gathering key stakeholders—family members, trusted advisors, and senior family office staff. Discuss your vision for the future. What do you want your family office to accomplish in the next decade? Who shows interest in leadership roles? What concerns do people have about the transition? 

These initial conversations reveal gaps in understanding and alignment. You might discover that your intended successor has different career aspirations. Or that multiple family members want the same role. Better to learn this now than during a crisis. 

Map Your Leadership Succession Timeline 

Effective succession happens in phases, not overnight. You need to create a realistic timeline that gives everyone adequate runway. 

Consider three horizons: 

• Immediate (0-2 Years): Identify emergency successors for critical roles. What happens if your current family office leader becomes unavailable tomorrow? Document essential responsibilities and relationships. Make sure at least one other person understands each critical function. 
• Medium-Term (2-5 Years): This window allows you to be strategic. Evaluate which family members or professionals might step into leadership roles. Begin their development now through mentorship, education, and hands-on experience. Rotate promising candidates through different areas of the family office so they gain broad exposure. 
• Long-Term (5-10 Years): Think about structural changes. Will your family office need to evolve as the family grows? Should you consider co-leadership models? How will you handle transitions between generations with different values and approaches? 

Document this timeline and share it with relevant stakeholders. People perform better when they know what you expect and when. 

Invest in Leadership Development Before You Need It 

The skills that built your wealth may not be the skills needed to sustain it. First-generation wealth creators often succeed through risk-taking and decisiveness. Later generations need different capabilities—collaboration, diplomacy, and systems thinking. 

Create individualized development plans for potential successors. These plans should include: 

• Formal Education: Financial management, investment principles, governance, and family business dynamics 
• Mentorship: Pair rising leaders with experienced family office professionals or outside advisors 
• Practical Experience: Give candidates real responsibilities with appropriate oversight 
• Peer Learning: Connect next-generation leaders with peers from other family offices 

Do not wait until someone needs to step into a role to begin their preparation. Leadership development takes years, not months. 

Address the Structural and Legal Foundation 

Your succession plan needs solid legal and structural underpinnings. Review these elements regularly: 

• Estate Planning Documents: Confirm that trusts, wills, and other documents reflect your current intentions. Verify that the right people hold fiduciary roles and that clear succession mechanisms exist. 
• Operating Agreements: Examine shareholder agreements, partnership documents, and family office governance structures. Do they facilitate smooth transitions or create obstacles? 
• Asset Titling and Valuation: Ensure assets are properly titled and valuations are current. Outdated valuations can create conflict during transitions. 
• Decision-Making Frameworks: Document how your family makes important decisions. As leadership changes, these frameworks provide continuity and reduce conflict. 

Setting Up a Family Office? Here are 8 Top Tips.

Sometimes family dynamics may affect the conversations that need to be had.  A neutral team of advisors with a lack of self interest can assist.  

– Kris Marney, Partner, Advisory

Navigate the Emotional Complexity with Care 

Succession planning is never purely technical. Family dynamics, identity, and emotion play enormous roles.  

You may face difficult realities. Perhaps your children lack interest in managing the family office. Or multiple family members want the same leadership position. Some rising leaders may not have the capability you hoped they would develop. 

Handle these situations with honesty and compassion. Engage outside facilitators when needed to guide sensitive conversations. Consider creating meaningful roles for family members who want involvement but may not be suited for executive leadership—board positions, committee chairs, or advisory roles. 

Remember that stepping back does not mean stepping away. Find ways for transitioning leaders to continue contributing their wisdom without blocking the next generation’s growth. 

Learn more about our Family Office Services

Work with BPM to Build Your Family Office Succession Strategy 

Succession planning requires both technical knowledge and deep understanding of family dynamics. You need advisors who can navigate both dimensions effectively. 

BPM works with family offices to develop comprehensive succession plans that protect wealth while strengthening family relationships. We help you assess your current situation, identify gaps, and create actionable roadmaps for smooth leadership transitions. Our approach balances the financial, legal, and human elements that make succession planning so challenging. To build a succession plan that preserves your legacy and prepares the next generation to thrive, contact us.  

The Financial Accounting Standards Board (FASB) voted at its November 19, 2025 meeting to add two crypto-related projects to its technical agenda. The decision responds to feedback from companies experiencing inconsistent accounting practices for digital asset transfers and emerging token types. 

If your business holds cryptocurrency or engages in digital asset transactions, these developments will impact your financial reporting in the months ahead. 

Two New Projects on the Agenda 

FASB will tackle two specific areas where current guidance needs clarification: 

Expanding coverage for wrapped and receipt tokens. FASB plans to revise the scope of Subtopic 350-60 to include crypto assets that provide the holder with a right to receive another crypto asset. Currently, these instruments lack clear accounting treatment, leading companies to apply various sources of guidance. 

Clarifying when you can derecognize transferred crypto assets. FASB will develop guidance to help you determine when control of a crypto asset has been transferred—a question that arises in staking, lending, and liquidity pool arrangements where you may retain contractual rights to reclaim the asset. 

The Gap in Current Standards 

ASU 2023-08 established fair value accounting for certain crypto assets, but it didn’t address the full range of transactions companies now engage in. Wrapped tokens that represent other crypto assets, and arrangements where you transfer crypto while retaining reclaim rights, fall outside the current framework. 

This has created inconsistency in how organizations account for similar transactions. 

Three Potential Approaches for Derecognition Guidance 

FASB is considering several alternatives for the derecognition project: 

• Codifying specific crypto lending scenarios based on existing AICPA practice guidance 
• Applying existing control guidance from revenue recognition standards (Topic 606) while clarifying how repurchase provisions should be evaluated 
• Developing crypto-specific derecognition criteria tailored to digital asset characteristics 

FASB indicated it will research the second approach first—leveraging existing accounting frameworks rather than creating entirely new rules. 

Learn more about our Blockchain and Digital Assets Consulting Services

What Your Organization Should Consider 

Review Your Current Practices 

As FASB staff conduct additional research, assess your digital asset holdings and identify transactions that involve: 

• Wrapped tokens or receipt tokens 
• Staking arrangements with return provisions
• Crypto lending or borrowing activities 
• Any transfer where you retain contractual rights to reclaim assets 

Document Your Approach 

Maintain clear records of how you’re currently accounting for these transactions. This documentation will help you evaluate changes needed once final standards are issued. 

Monitor Developments 

FASB staff will perform additional research and outreach before bringing these topics back to a future board meeting. Organizations that track these developments will be better positioned to implement changes when new guidance becomes effective. 

How BPM Can Help 

At BPM, we work with businesses to develop accounting policies for crypto holdings and transactions that are consistent with U.S. GAAP. 

Whether you need help evaluating how new FASB guidance might affect your financial statements or implementing current crypto accounting standards, our team is here to help. 

Contact us today to discuss your crypto accounting questions and how we can support your financial reporting needs. 

Private credit is one of the fastest-growing segments in alternative investments, with assets surpassing $1.7 trillion globally. This market’s explosive growth offers attractive yield opportunities, but also creates a murky landscape where determining true asset values becomes increasingly difficult. Unlike public markets with their constant price discovery mechanisms, private credit operates in shadows where information flows unevenly and comparable are scarce.  

4 valuation challenges in the private credit market 

Fund managers, investors and regulators now grapple with fundamental questions about how these assets should be valued, who should validate those values and what happens when markets turn. This article examines the critical valuation challenges facing private credit participants, explores their underlying causes and presents practical approaches to strengthen valuation practices in this market. 

Understanding the transparency gap 

Private companies operate under fundamentally different disclosure requirements than their public counterparts, creating a significant information divide. While public companies must provide detailed financial statements, regulatory filings and regular updates to shareholders, private borrowers can limit the information they share. This lack of transparency makes it inherently more difficult to assess the true value of private credit investments. 

The information asymmetry between public and private markets creates challenges when trying to apply traditional valuation methods. Analysts valuing private credit often rely on incomplete data sets, requiring them to make more assumptions and apply judgment where concrete information is unavailable. 

Valuation methodologies: subjectivity versus market benchmarks 

Valuing private credit involves significantly more subjective assessment than public market valuations. Without readily available market prices or extensive comparable data, private credit valuations frequently depend on proprietary models, management projections and analyst judgment. This subjective element introduces potential inconsistencies across different holders of the same asset. 

The Bloomberg article “Flawed Valuations Threaten $1.7 Trillion Private Credit Boom” highlights this issue through specific examples. In one case, two different lenders valued the same loan to Magenta Buyer (a cybersecurity company) at dramatically different levels— 79 cents versus 46 cents on the dollar. Such wide discrepancies demonstrate the inherent challenges in achieving consistent valuations across the private credit landscape. 

Conflicts of interest and incentive alignment 

The private credit market structure creates potential conflicts of interest that can impact valuations. Fund managers may have incentives to maintain higher valuations to support performance metrics, management fees or fundraising efforts. This potential misalignment between manager interests and accurate valuations requires robust governance and independent oversight. 

Regulatory bodies have recognized these challenges, with the Securities and Exchange Commission increasing scrutiny on private fund valuation practices. Recent regulatory initiatives push for greater transparency and independent verification of private credit valuations to protect investors and maintain market integrity. 

Market stress and valuation resilience 

Economic uncertainty and market stress can amplify valuation challenges in private credit. Rising interest rates put pressure on borrowers’ ability to service debt, potentially affecting credit quality and underlying valuations. The limited liquidity in private credit markets means valuations may not adjust as quickly as they would in public markets during periods of stress. 

Recent trends showing increased use of payment-in-kind (PIK) provisions, where borrowers can defer interest payments, further complicate valuation assessments. These structures embed additional forward risk that must be properly accounted for in current valuations. 

Learn more about our Business Valuation Services

Applying reliable valuation frameworks  

Addressing private credit valuation challenges requires a disciplined approach including industry and market information, understanding of applicable valuation methodologies, and defensible support for key inputs and assumptions. For example, regular benchmarking against public market data, when available, can provide critical reference points for private credit valuations, when applied within the proper valuation framework.  

Additionally, data analysis and enhanced due diligence processes can supplement traditional valuation approaches, when materiality or strategic decision making calls for it, helping to uncover risks that might otherwise remain hidden. By incorporating stress testing and scenario analysis, valuation professionals and finance leadership can better account for potential economic changes that might impact credit performance.  

Working with BPM for valuation solutions

Navigating the complex landscape of private credit valuations requires specialized knowledge and greatly benefits from independent perspective. BPM provides a comprehensive approach to navigating valuation challenges, combining deep industry knowledge with rigorous analytical methodologies that ensure unbiased assessments free from conflicts of interest.  

By partnering with BPM, private credit market participants gain access to valuation services built on transparency, consistency and methodological rigor. Their collaborative approach ensures valuations reflect market realities while adhering to applicable accounting and financial reporting standards, giving clients the confidence to navigate valuation challenges with greater certainty in an increasingly complex marketplace. To find out more, contact us.   

Running a nonprofit means balancing your mission with the realities of compliance. While you focus on changing lives and strengthening communities, you also need to navigate IRS and state requirements. Form 990 sits at the center of this responsibility and understanding it can make the difference between smooth operations and costly penalties. 

This guide will walk you through what Form 990 is, who needs to file it, when it’s due, what information you’ll need, and how to complete it correctly.  

What is Form 990? 

Form 990 is an annual information return that most tax-exempt organizations must file with the IRS. Think of it as your organization’s financial report card. It gives the IRS a complete picture of your activities, governance structure, and financial health. But it serves another purpose too: it allows donors, grantmakers, and the public to see how you’re fulfilling your mission and managing resources.  

This transparency matters. When people can review your Form 990, they can make informed decisions about supporting your organization. 

Who Needs to File Form 990? 

Most tax-exempt organizations must file some version of Form 990. Churches and certain state institutions are exempt, but if you’re running a public charity, trade associations or social welfare organization, you’ll likely need to file. 

The specific form you file depends on your organization’s size: 

• Form 990-N (e-Postcard) is for organizations with gross receipts of $50,000 or less 
• Form 990-EZ is for organizations with gross receipts under $200,000 and total assets under $500,000 
• Form 990 is for larger organizations that exceed these thresholds 

When is Form 990 Due? 

You must file Form 990 by the 15th day of the fifth month after your fiscal year ends. If your fiscal year ends on December 31, your Form 990 is due by May 15. If you operate on a June 30 fiscal year end, you’ll need to file by November 15. 

Missing this deadline creates problems. You can request an automatic six-month extension by filing Form 8868 before the original due date, but you need to plan ahead. 

Understanding the Penalties 

The IRS takes Form 990 seriously, and so should you. If you file late, you’ll face penalties of $20 per day for organizations with gross receipts under $1 million, or $100 per day for larger organizations. These penalties cap at $10,000 and $50,000 respectively, but they add up quickly. 

The bigger risk? If you fail to file for three consecutive years, the IRS will automatically revoke your tax-exempt status. Reinstatement requires significant effort and expense. 

What Information Does Form 990 Require? 

Form 990 asks for detailed information across several categories. You’ll need to provide your organization’s mission statement, program descriptions, and financial data including revenue, expenses, assets, and liabilities. 

The governance section requires information about your board, policies, and decision-making processes. You’ll also need to disclose compensation for officers, directors, key employees, and high-earning contractors. 

Schedule sections request additional details about specific activities like fundraising events, grants made, political activities, and related organizations. The supplemental information section provides space to explain financial statements and elaborate on your programs. 

Learn more about our Nonprofit Industry Solutions

How to Complete Form 990 Correctly 

Start by maintaining accurate records throughout the year. Good bookkeeping prevents scrambling when filing season arrives. Document board meetings, track program expenses separately, and keep detailed compensation records. 

Give yourself adequate time to complete the form. Rushing leads to errors and omissions that can trigger IRS inquiries. Review the instructions carefully each year, as requirements change. 

Consider your audience as you write. Your Form 990 tells your story to potential donors and grantmakers. Clear, detailed program descriptions help people understand your impact. 

Stay current with IRS updates and guidance. The agency periodically revises forms and instructions, and you need to comply with the latest requirements. 

Getting the Support You Need 

Form 990 compliance doesn’t have to overwhelm you. At BPM, we understand the unique challenges nonprofits face. We’ve worked with more than 500 nonprofit organizations over nearly 40 years, from small family foundations to large institutions managing millions in endowments.  

Our team includes professionals who hold AICPA Not-For-Profit Certifications and serve on nonprofit boards in their communities. We’re members of the AICPA Governmental Audit Quality Center, demonstrating our commitment to quality.  

Whether you need help with Form 990 preparation, audit services, tax compliance, or outsourced accounting support, we can help you stay compliant while you focus on your mission. To discuss how we can support your organization’s compliance needs and help you tell your financial story with confidence, contact us. 

 

As organizations enter an era of unprecedented technological advancement and workforce transformation, human resources leaders face the challenge of balancing innovation with employee well-being, compliance with agility, and automation with the human touch. The following hr trends will define strategic HR leadership in the year ahead. 

1. AI Integration and Strategic Technology Adoption 

Artificial intelligence is moving beyond pilot programs into the core of HR operations. From talent acquisition and performance management to workforce planning and employee engagement, AI tools are reshaping how organizations manage their most valuable asset: their people. At the same time, HR and IT functions are converging rapidly, with predictions that these departments will be fully integrated within five years. 

This technological shift demands that HR leaders take ownership of AI governance frameworks. Organizations must establish clear protocols for algorithmic fairness, transparency in automated decision-making, and compliance with evolving AI regulations. The challenge lies in balancing the efficiency gains of automation with the need for human oversight, particularly as employees express concerns about job security and the role of technology in workplace decisions. 

Key Considerations: 

• Implementing responsible AI governance structures with clear accountability 
• Building joint HR-IT platforms for data security and technology integration 
• Addressing employee concerns through transparent communication about AI’s role 

2. Skills-Based Workforce Design 

The traditional job description is giving way to skills-based workforce models. Research indicates that many existing skill sets will become obsolete, forcing organizations to reimagine how they structure work, develop talent, and measure capability. Rather than hiring for rigid roles, forward-thinking companies are building skills ecosystems that enable internal mobility and adaptability. 

This shift requires significant investment in reskilling and upskilling pathways. Organizations must develop robust learning infrastructures that allow employees to evolve alongside business needs. The challenge is maintaining productivity and engagement while simultaneously closing widening skills gaps that threaten competitive positioning. 

3. Employee Experience and Hybrid Work Models 

Employee experience has emerged as a critical driver of organizational performance. Companies are recognizing that personalized experiences—encompassing employee development, well-being programs, and workplace flexibility—directly impact engagement, retention, and business outcomes. 

However, return-to-office mandates are creating tension with employee expectations for flexibility. Many organizations are finding that rigid location-based policies risk disengagement and attrition, particularly among high-performing talent. The solution lies in redesigning work architecture around skills and outcomes rather than physical presence. Organizations must craft employee value propositions that balance business needs with genuine flexibility, avoiding the disconnect between stated commitments to well-being and actual resource delivery. 

Critical Success Factors: 

• Using data-driven insights to deliver personalized employee experiences 
• Designing hybrid models focused on productivity and collaboration rather than mandates 
• Aligning workplace policies with authentic employee value propositions 

4. Ethical and Regulatory Compliance 

A complex web of new compliance requirements is emerging around AI usage, pay transparency, and data privacy. These regulations vary by jurisdiction, creating challenges for organizations operating across multiple regions. Beyond legal compliance, companies face growing expectations for ethical technology adoption and transparent employment practices. 

HR leaders must build regulatory resilience frameworks that can adapt to evolving requirements while maintaining employee trust. This includes establishing ethical guardrails for technology implementation, ensuring fair and transparent compensation practices, and protecting employee data privacy. The challenge is keeping pace with multi-jurisdictional regulations while demonstrating genuine commitment to ethical business practices. 

5. Leadership Development and Change Management 

Constant disruption has become the new normal, requiring leaders who can navigate ambiguity and build organizational resilience. Traditional leadership models are giving way to adaptive approaches that emphasize psychological safety, continuous learning, and the ability to lead through uncertainty. 

Organizations must equip managers with tools and training for this new leadership paradigm. This includes developing skills in change management, fostering team resilience, and creating environments where employees feel safe to innovate and take calculated risks. The challenge is sustaining engagement and trust during periods of transformation while maintaining operational excellence. 

Learn more about our Human Resources Services

Strategic Imperatives for HR Leaders in 2026 

As these hr trends reshape the HR landscape, leaders should prioritize the following actions: 

• Establish AI governance frameworks that balance innovation with ethical considerations and regulatory compliance 
• Invest in skills infrastructure including learning platforms, internal mobility programs, and capability assessment tools
• Redesign the employee value proposition to authentically address flexibility, development, and well-being 
• Build HR analytics capabilities that enable predictive decision-making and strategic workforce planning 
• Create regulatory resilience systems that can adapt to evolving compliance requirements across jurisdictions 
• Develop leadership pipelines focused on adaptive skills and change management capabilities 

How BPM Can Help 

Navigating these complex HR challenges requires strategic guidance and operational support. BPM’s advisory services help organizations design and implement workforce strategies that drive business performance. From technology governance and compliance frameworks to leadership development and organizational design, our team provides the insights and implementation support you need to transform your HR function for 2026 and beyond. Contact BPM today to discuss how we can support your human resources initiatives.