By Jeffrey Byrne

The current political and economic climate presents significant challenges for nonprofit fundraising. From federal funding shifts to global economic uncertainty, organizations are navigating a complex landscape. This article offers practical strategies to help your nonprofit not just survive but thrive in these turbulent times.

What’s going on?

On the political front, increased polarization and divisiveness make it harder to touch on sensitive issues to gain broad support.  For example, a national survey by Give Freely revealed that 77% of US respondents believe political polarization has made people hesitant to donate to charities. Shifting government priorities reveal unexpected changes in funding priorities from local, state, and federal agencies. The temporary pause on disbursement of federal assistance in early 2025 impacted numerous nonprofits, foreign aid, and DEI initiatives.  The resulting confusion resulted in cutbacks in services and in some cases, reductions in workforce.  In fact, the Chronicle of Philanthropy recently posted that there have been over 10,000 nonprofit job cuts in the past 70 days.  Increased scrutiny and, in some instances, regulation from both donors and government entities add pressure to operations.

Economically, persistent inflation increases operating costs, which can strain budgets.  Clients and donors feel the threat of recession.  Giving USA notes that less than 50% of American households give to charities due to economic hardship and decreasing confidence in non-profit organizations. Consequently, while we’re seeing increases in the need for services as families face hardships,  individual giving may continue to wane as donors have less disposable income.

All these challenges lead to donor fatigue, changes in volunteer engagement, difficulty in talent management, and competition for the reduced financial resources.

The good news? You can wade through this challenging environment by being proactive, adaptable, and focused on your core mission and the impact you create.  Here are key strategies to navigate the environment:

• Communicate, communicate, communicate!
  • Emphasize impact and outcomes for donors so they clearly understand that their gifts make a profound difference.
  • Sympathize with your donors during these uncertain financial times and let them know you will work with them when the timing is right.
  • Build trust within your donor community by communicating honestly about how your financial situation impacts your ability to deliver your service programs.  Highlight the urgency of the situation.
  • Strengthen your brand to clearly articulate your positive impact and value that resonates with a broad audience.
  • Personalize donor communications.
• Advocate and Engage!
  • Engage in nonpartisan advocacy and education with elected officials and their staff to ensure they know of the importance of your work for their constituency.
  • Build strong community relationships with stakeholders and community leadership to strengthen your base of support.
• Be Creative!
  • Consider novel fundraising approaches to supplement your current methods to reach a wider audience and tap into different giving motivations. For instance (and there are many more!):
    • Live stream your events using platforms such as YouTube Live or Instagram Live that allow viewers to donate in real-time and share the event on a wide scale
    • Partner with local businesses that support your mission to implement a shop-to-give options where a percentage of sales go to your programs
    • Invite donors to host their own micro-events tied to specific giving goals
  • Focus on donor retention and upgrading as it is often more cost effective to retain existing donors than gain new ones.
  • Diversify your funding streams beyond your current donors. For example, consider the full range of donors from individuals, institutional donors, and corporations.   Explore grant opportunities with foundations and government agencies.  Consider partnerships that can help you gain new constituents.
  • Collaborate and partner with other nonprofits or organizations to leverage your distinct voices, share resources and demonstrate alignment with the broader community needs.
• Strengthen Financial Management!
  • Maintain rigorous budgeting and cost management to ensure that you are prioritizing your programs and services.
  • Build an emergency or reserve fund.
• Plan, Review and Adapt!
  • Conduct scenario planning for potential future political or economic shifts and develop mitigation strategies with senior staff and Board Members.
  • Regularly review your tactics and adapt as the environment changes.

Remember the power of your mission. By implementing these strategies, you will strengthen your ability to connect with donors and continue to make a profound difference in the lives you touch.