In late January 2025, many nonprofit organizations experienced an earthquake when it was announced that there would be a halt to all federal grants and loans. Since then, nonprofits have been experiencing additional seismic activity in continuous aftershocks: limits on indirect cost reimbursement through NIH funding, termination of many federal grant programs, funding withheld from approved Department of Education grants, and now, with the government shutdown, cuts to clean energy projects.
At NEXT in Nonprofits, in partnership with our clients, we are feeling the instability of the ground below us. Cracks, crevices, and canyons have formed. Funding opportunities have shifted even for nonprofits not directly affected by federal funding. Private foundations and funders are receiving a higher number of requests to fill the gaps left by government cuts. This has resulted in increased competition for the same pool of private funding, leading to longer waiting times, stricter criteria, and greater uncertainty in awarding grants. Funders feel pressure to reallocate or reprioritize, sometimes shifting away from smaller, grassroots organizations or initiating new partnerships with other organizations, opting instead to support already established relationships. We have received direct feedback from funders discouraging applications, saying:
- “We have changed to an invite-only application.”
- “We are supporting organizations with which we have a current relationship.”
- “We have no grant opportunities this year as we are redefining our funding priorities.”
This may all sound very discouraging, but unlike a natural disaster like an earthquake, we have the ability to respond and even guide how these aftershocks are felt. We can choose whether the ripple effects become destabilizing cracks or whether they are opportunities to strengthen and reinforce what we’ve built. Your organization’s mission is worthy of support, and we, at NEXT in Nonprofits, have a few strategic efforts your org should make now.
- Deepen funder relationships
- Reach out to your previous funding partners and schedule a time to talk with their program officer.
- Build a compelling case for unrestricted support
- Rewrite your case, providing insights on the current landscape and how general operating funds make a difference.
- Lean into individual giving
- Cultivate major donor relationships
- Promote monthly sustainer, recurring gifts program
- Encourage and design peer-to-peer campaigns
- Participate in giving days and crowdfunding campaigns
- Prepare for and promote planned giving opportunities
- Expand options in Institutional Philanthropy
- Utilize your contacts to establish introductions to community or family foundations
- Expand visibility to add value for corporate sponsorships
- Enroll in employee giving & match portals like Benevity
- Host a % of sales promotion event with a local business partner
- Align and market a point-of-sale retailer roundup campaign
- Introduce your org to civic and fraternal groups such as Rotary, Lions, and Junior League.
- Highlight Program Engagement
- Establish program evaluation and measurement in an accessible, engaging format catered to your community
- Lead program reporting with impact storytelling over quantitative measures
- Share your story with your funders, supporters, participants, and community
This may all sound very discouraging, but unlike a natural disaster like an earthquake, we have the ability to respond and even guide how these aftershocks are felt. At NEXT in Nonprofits, we have a few strategic efforts your org should make now.
We can choose whether the ripple effects become destabilizing cracks or whether they are opportunities to strengthen and reinforce what we’ve built. Your organization’s mission is worthy of support, and we, at NEXT in Nonprofits, have a few strategic efforts your org should make now.
Want to chat? Email us at info@nextinnonprofits.com!
