Resilient Fundraising: What nonprofits should be focusing on now
Executive Principal Taryn Deaton discusses four fundamentals nonprofits should focus on NOW to strengthen fundraising efforts
One of the most common threads in our recent conversations with our nonprofit partners has been how to respond to the growing fundraising uncertainty fueled by shifts in the current administration’s policies. Nonprofits across the sector are feeling the impact—whether through reductions in government funding, changes to philanthropic priorities, or broader economic ripple effects. It’s a tough environment, but it’s also a clarifying one.
In moments like these, going back to the fundamentals can make all the difference. Now is the time to strengthen your foundation: refine and reaffirm your case for support, deepen relationships with your most loyal funders, and explore strategic partnerships that can amplify your impact and extend your reach. While the landscape may be unpredictable, these core elements remain steady anchors that can help your organization stay grounded and move forward with purpose.
Below, we break down each of these essential focus areas—and share practical insights to help you navigate this uncertain fundraising horizon with resilience and intention.
Update your case for support
This doesn’t have to be a lengthy process, in fact, you need to do it quickly. As you do this, remember that we all have values, beliefs, and ethics that we want to live out. We have a vision for the world we’d like to help create. Some steps toward this vision can be taken independently, while others require collaboration with people or organizations to bring them to life. Ultimately, as a nonprofit leader you are looking for funders (people and institutions) who, when they learn about your organization, say, “That sounds like something I want to be part of!”
Now is an important time to lean into the idea of connecting based on shared values. There are many individuals and institutional funders who are disillusioned by what is happening in our country, and many of us feel paralyzed about what do to make it better. We want to do something that will make a difference but we aren’t sure where to start or who to partner with to make that possible. That’s where your nonprofit organization comes in!
Revisit your case for support and make sure the vision you present reflects the future your organization aims to create or the the broader aspiration you’re working toward.
Similarly, clearly illustrate the factors – especially those that are happening right now – that are keeping you from being able to do this work. Are you losing federal grant money? If so, how much and what will the impact be? Are many of your individual donors federal employees who have lost their jobs or whose jobs are at risk? Is your community being impacted in new/different ways?
Your tone should not be “the sky is falling,” unless it actually is. Be honest and transparent with your donors. Talk to your donors like the partners they are. What do you want your donors to feel? When you consciously name the emotional response you aim to elicit, it becomes easier share it.
The goal is to give donors a way to act, a way to help. Giving to your organization is a way to partner in a shared vision of a better world. You are providing donors with agency in what might otherwise feel like an impossible situation.
Prioritize your individual major donors
Your major donors have a profound impact on your organization’s revenue and likely have the greatest bandwidth to increase their annual support. Reach out to check on them and to directly share the challenges you are facing. Ultimately, you want to inspire your donors to ask, “How can I/we help?”
Now is also a great time to further cultivate donor advised fund (DAF) donors. Pull a list of DAF donors from your CRM and prioritize outreach to them. In creating a DAF, these donors have already set aside funds for philanthropic giving – and while these funds are affected by dips in the market - you are not asking these donors to make gifts from their cash assets. We also know that many DAF donors aren’t distributing as much as they could be. Now is the time to make a case that they should give more. Be sure your DAF donors know about #HalfMyDAF for the opportunity for their gift to you to be doubled.
If your organization isn’t focused on individual giving, now is the time to start working on a strategy. While it will take years to have the impact of a lost foundation grant or federal funding, individual giving is essential to a healthy, diversified revenue structure that can help organizations ride the inevitable economic waves that will continue to come in future years.
Touch base with your foundation funders
Several national foundations have already stepped up to increase their payout rate, providing emergency funds, seeking to shrink the financial gap created by federal funding cuts, and more. As a philanthropic community we should celebrate those who are increasing their grants, and continue calling on others to join this movement.
But as some foundations are increasing grant dollars, they may also be changing their funding priorities. When foundations change their funding priorities, it is important to know as soon as possible. Now is the time to check in with your institutional funders to get a sense of if their priorities are changing and, if not, to directly share the challenges you are facing.
We often keep very formal relationships with foundation funders, when in reality we should be thinking of them as our closest partners. Your program officer is a human being and the foundation clearly cares about your organization and wants to see it succeed. Talk to your program officer like a partner, share the challenges you are facing, and brainstorm together ways that you might overcome these.
Consider joining forces
Are there other nonprofit organizations in your community, state, or nationally that do work that is complementary to yours? Now is a good time to think about fundraising cooperatively. A recent Chronicle of Philanthropy article mentioned a group of fundraisers in a particular community who realized they had many major donors in common. Instead of approaching them independently, they decided to approach them jointly. Is there an opportunity for you to do something like this?
In Thread’s work with small and medium sized nonprofits, we often see a lot of organizations operating independently whose missions are very similar to other nonprofits. In a world of limited resources, it might be time to consider whether merging with an organization might be the most effective way to carry out your mission in the future. Certainly, there are many operational efficiencies that can be created which means more dollars that can be directed to the mission.
If you’d like to dig into any of these ideas more deeply or you need a thought partner on your particular situation, send us an email at hello@threadstrategies.com.