Over the past month, I’ve had quite a few conversations with funders about what fundraising looks like in this current environment. I’ve been asking about the trends they’re seeing and what those trends mean for organizations meeting needs like housing, shelter, food, and economic mobility, among so many others.
The Ground Is Shifting
One thing comes up again and again: government support is being pulled back or tied to requirements so strict that organizations are changing how they operate just to keep it. When that funding disappears, the impact is immediate. Programs close, the people and communities being served go without, and the staff who do this work because they care, and who also rely on it for their own livelihood, are left looking for other jobs or are laid off with no clear next step.
The sector has seen this coming and has been preparing as things continue to shift. Still, the reality is that there are so many organizations and people who need support and only so many funders who can provide it.
Diversify and Lead with Your Values
Diversifying your funding is the advice I give most often. Relying on one source is risky for any organization, nonprofit or not. Funders can change priorities, stop giving, or move away from what your organization stands for, often without much warning.
This is where your values come in. They help you identify the funders who genuinely align with your work, and they give you a strong foundation for honest conversations about the support you need.
Getting Creative
What I’m hearing from funders is that organizations will need to get creative in how they approach funding, and that often means thinking outside the box. For some, that might look like partnering with a similar organization to share a service and apply for joint funding. For others, it might mean merging where it makes sense, or referring people to other organizations for services outside their scope. We can’t all be everything to everybody, and recognizing that can free you up to focus on what you do best.
Getting creative doesn’t always mean starting something new, either. Sometimes it means doing the same things better, looking at them through a different lens, or finally making the time for the work that keeps getting pushed aside.
A Call to Funders
Creativity on the nonprofit side only goes so far. Funders have a role to play too.
Organizations need funding for the organization. That includes operations, and it includes paying the people who do this hard work fairly. If we want people to receive quality services, we have to take care of the people providing them. Funding the one project you hold close may feel meaningful, but it doesn’t always help an organization stay strong in the long run.
So to funders: partner with the organizations you support. Get to know them well enough to understand where the money goes, then trust them to use it in ways that build their longevity, sustainability, and quality. Times like this call for your full support, partnership, and guidance, and the organizations doing this work are counting on it.