Nonprofit leaders are navigating a lot of uncertainty right now. With government funding becoming less predictable, private funders rethinking their priorities, and political shifts influencing public messaging, organizations are adapting. Some are making big changes, while others are staying the course—but nearly everyone is thinking about how to stay resilient. Here’s what we’re hearing from nonprofit leaders about the challenges they’re facing and how they’re responding.
What We’re Hearing from Nonprofit Leaders Right Now
Funding Unpredictability
At this point, we all know government funding for nonprofits is going to be far less reliable for the foreseeable future, which is going to stretch private funders thin. After all, according to Candid, more than 30 percent of U.S. based nonprofits rely on federal funding for their work, amounting to $303 billion annually. So while it used to be that government funding provided the safety net and private funders filled in the gaps, now given the current climate, nonprofit leaders envision private funders rethinking their funding strategies, in several ways, by:
- Re-evaluating priorities to ensure resources are directed to what they believe are the highest-impact causes.
- Shifting support toward nonprofits that provide critical programming once funded by the government.
- Helping grantees diversify revenue to reduce reliance on any single funding source.
There will be a lot more competition for private sector dollars in the coming years, and even those organizations that do not receive government funding will be impacted. However, let’s remember, as nonprofit sector leaders, there has never been a funding stream that has been certain. As Dorri McWhorter, former CEO of YMCA of Metropolitan Chicago shared during our recent webinar about navigating change and uncertainty:
“No source is guaranteed. I don’t care what the source is…We can’t be too comfortable, ever.”
Shorter-Term & Scenario Planning
Some nonprofit leaders are considering shorter-term planning or scenario planning. Those that are considering shorter-term planning are planning about six months to a year out in an effort to keep their organization aligned toward their goals, but also saving space for a larger planning effort once time has passed and more information is available.
Alternatively, some are focusing on creating plans in the event of different scenarios, for examples what the organization looks like if government funding is cut significantly or completely or if there are shifts in the economy or the stock market that will impact private funders.
Rethinking Messaging
As they’ve done in the past, many nonprofit leaders are rethinking their messaging in the context of the current political climate because new government contracts require them to and/or because they want to maintain bipartisan support. According to nonprofit leaders, we can expect to see reframed language around policy issues, more messaging about shared values, human-centered storytelling, and a focus on core mission-related issues with less emphasis on root causes.
That being said, there are plenty of organizations that are standing their ground and maintaining direct messaging, betting on the fact that it will strengthen their connection to core funders and supporters.
Don’t Panic, Stay the Course
Despite ongoing challenges, nonprofit leaders emphasize the importance of staying focused and not overreacting. While preparing for change is essential, so is remaining committed to the mission at hand. Adaptability, resilience, and a clear vision will help organizations navigate uncertainty without losing sight of their purpose.
The nonprofit sector has always been defined by resilience, and this moment is no different. While funding shifts, planning cycles shorten, and messaging evolves, nonprofit leaders are determined to adapt without losing sight of their core mission. By embracing flexible strategies, engaging funders proactively, and communicating effectively, nonprofits can continue to make an impact, even in uncertain times.
What steps is your organization taking to navigate these changes? Join the conversation in the comments.
