If you’ve been in nonprofit leadership long enough, you know one thing for certain: funding is never guaranteed. Contracts get slashed, priorities shift, and new administrations bring new rules. The worst thing you can do? Panic. The best thing you can do? Strategize.
Right now, nonprofit leaders are facing economic and political shifts unlike anything we’ve seen in decades. Regardless of whether you accept federal funding directly or not, the current changes are going to impact the entire industry. Many private founders and community foundations that you do accept funds from will be impacted by new guidelines, and this will directly affect you. Count on it.
The current pace of changes in federal funding and guidelines are unprecedented, and we are all watching together to see what the shifts will bring. Many organizations are bracing for impact, unsure of how these changes will affect their programs and long-term viability. Some leaders are frozen in fear, waiting for clarity. Others are making knee-jerk reactions—cutting development staff, slashing programs, and stepping back from donor engagement.
Let me be clear: this is not the time to retreat. Those who stay the course, who remain focused and strategic, will not only weather this storm but come out ahead. Times of uncertainty create opportunities for bold leaders to rise. The organizations that maintain donor relationships, communicate clearly, and adapt to new funding landscapes will be the ones that thrive.
Nonprofit leaders, I’m talking to you. Your team, your donors, and your mission need you to lead with confidence, not fear.
Stay Focused on Facts, Not Fears
It’s easy to get caught up in the noise—headlines scream about budget cuts, economic downturns, and donor fatigue. But we have a responsibility as leaders to separate reality from speculation. Just because change is happening doesn’t mean it’s happening to you. Find out the facts. Talk to donors, board members, and community partners. Understand what is actually shifting in your funding sources before making drastic decisions.
When was the last time you really dug into your funding sources and identified untapped opportunities? What percentage of your funding could be in jeopardy, and what sources remain unexplored? The truth is that most nonprofits are leaving more potential donations on the table than they realize, either by not following through with donor relations or not fully utilizing technology to work their donor base.
Think about your top five donors. Has their commitment to your mission changed? Are they in a position to give more or less this year? Is the time right for a new program that would be a perfect fit for one of your partner’s passions? Gathering this type of information about your core donors and working with your donor relations team is a better use of time than refreshing your favorite news site for any mention of nonprofit funding. Stay informed but not consumed by media updates.
I’ve seen too many nonprofit leaders flinch at rumors and make cuts that do more damage than the economic shifts themselves. There’s a difference between acting with urgency and reacting out of fear. Acting with urgency means getting the facts, reading the landscape, and making smart, strategic moves. Reacting? That’s what happens
when leaders panic—slashing budgets, cutting staff, and pulling back from donors before they even understand what’s really happening. Your organization takes its cues from you. If you project fear, your team will start second-guessing everything. If you project steady confidence, your team will dig in and get to work.
Pivot, Don’t Pause
Tough times are not the moment to sit still. They are the moment to pivot. I’ve been through enough economic cycles to know that nonprofit funding doesn’t dry up—it shifts. If donors aren’t giving in one way, they’re giving in another. Your job is to find out where and how to meet them there.
Remember, when you can’t fix it, feature it. If you’re experiencing a funding shortfall, don’t hide it—bring your key donors into the conversation. Share your vision, explain the challenge, and give them an opportunity to step up. Donors don’t respond to desperation, but they do respond to vision.
Let’s say you just lost a $250,000 grant that funded a critical program. The wrong move? Panicking, slashing staff, and sending out mass emails begging for emergency help. That screams desperation. The right move? Turning the loss into a leadership moment.
Feature the Challenge You Face
The first 20 years of my career I used to advise political candidates running for office. These intense campaigns for Congress, Governor’s mansions and The White House were nothing but problem-solving day after long day. When we ran into a problem that could not be fixed, I always advised candidates with this rule: “If you cannot fix it, feature it.”
Pick up the phone. Call your top donors and say:
“I wanted you to hear this from me first. We just lost a grant that helped fund [specific program]. But here’s the good news—this program has been so effective that we’re not letting it go. We believe in it too much. We want to build a stronger, donor-driven model that makes this program sustainable long-term. Would you be open to a conversation about how you can be part of making that happen?”
This approach does two things:
- It reassures donors that you have a plan, not just a crisis.
- It invites them into a solution instead of just asking for a handout.
Donors want to invest in leadership, not damage control. If they see you standing strong and strategizing, they’ll step up. If they sense you’re drowning, they’ll step back. Lead with vision, not panic, and you’ll turn a funding loss into a donor opportunity.
Lead with Consistency and Clarity
The number one thing your team needs from you right now is consistency. In uncertain times, clarity is a form of currency. The best leaders don’t just reassure their teams—they give them a roadmap.
That means:
– Communicate your mission clearly. If your messaging is scattered, your donors and staff will be too. Take time to refine your mission and make sure your team is aligned. View challenges as an opportunity to double down on your clarity of purpose.
– Keep investing in donor relationships. Now is not the time to stop calling donors. If anything, now is the time to double down on personal connections and one-on-one conversations
– Staff strategically, not reactively. Cutting fundraising staff during tough times is like cutting your sales team when revenue dips—it only makes things worse. Talk to a trusted firm like Fit Fundraising to make information-based decisions on your staffing needs.
Keep a Growth Mindset
The greatest leaders are the ones who see challenges as opportunities. I can’t tell you how many times I’ve seen organizations panic in a crisis, only to realize later that their panic compounded the problem- impacting their own to recover. On the other hand, I’ve seen nonprofits use downturns to innovate—expanding digital outreach, developing major gift programs, and strengthening donor relationships. These are the organizations that don’t just survive—they come out stronger.
When things get tough, I remind myself of something a wise donor once told me, “I work so I can keep giving.” Trust me when I tell you there are many people on your file that are wanting a chance to get involved. They have been working and saving to help the a special charity who had the courage to ask for help.
Your most committed donors don’t stop giving when times are tough—they step up. But they need you to lead. They need you to cast a vision. They need you to remind them why their support matters now more than ever.
So step up. Lead with confidence. And remember, strategy beats panic every time.
Fit Fundraising works with nonprofits, large and small, in human services, international relief, advocacy and education. Founder Roy Jones has helped raise more than half a billion dollars over the last decade alone. Ready to elevate your fundraising efforts to new heights? Discover how Fit Fundraising can transform your results. You can reach Roy at rjones@fitfundraising.com.
