Enduring Fundraising Principles for Today’s Nonprofit Leaders
Nonprofit leaders find themselves in yet another climate of uncertainty. Swift administrative policy changes—including federal funding freezes, grant restrictions, trade tariffs, and shifts in support for various initiatives like scientific research, global aid, and DEI—are creating very real challenges for nonprofit organizations and the constituents they serve.
More than anything, the pace at which new information is being disseminated makes it challenging for even the most strategic leaders to keep up.
As a nonprofit fundraiser, you may be experiencing a range of emotions: Concern for your constituents, anxiety about financial stability, and uncertainty about how to communicate with your donors and stakeholders.
At Graham-Pelton, we’ve partnered with organizations through decades of dynamic markets and political environments. While we recognize that each disruption brings its own unique challenges, several enduring fundraising principles offer both comfort and practical direction for leading through change.
History Has Lessons to Offer
During periods of uncertainty, leaders may be faced with decisions about whether to begin a feasibility study, modify a strategic plan, restructure a development office, or launch the public phase of a campaign. You may find yourself advocating for retaining staff or hiring, even in light of budget cuts or freezes.
At these times, history can teach us valuable lessons about the importance of keeping focus on the long view during turbulent times and 24-hour news cycles.
When many nonprofits faced threats to their financial stability during the 2008‒09 recession, the philanthropic community responded. While the S&P 500 dropped by 38%, total giving only decreased by 7%. More recently, during the COVID-19 pandemic, many organizations experienced an outpouring of support in response to urgent needs, with total giving growing by 5.1% in that year. Initiatives like “half my DAF” prompted funders with dedicated philanthropic resources to consider increasing their support.
These examples aren’t meant to diminish the current challenges that nonprofits are facing. Rather, they remind us that when missions are threatened, communities often respond with increased commitment and generosity.
Still, we acknowledge that many institutions are facing unprecedented and profound funding gaps—some universities and research institutions are confronting deficits in the hundreds of millions of dollars. While philanthropy alone cannot fully replace these losses, strategic fundraising approaches can help mitigate impacts and create bridges to more stable futures.
Your Mission Remains Essential
The critical needs your nonprofit addresses don’t disappear during uncertain times—and in many situations, they have intensified. Your constituents may be experiencing heightened vulnerability, making your work more important than ever.
At Graham-Pelton, it’s our first-hand experience that nonprofits that maintain consistent donor engagement through periods of uncertainty typically navigate transitions more successfully than those that retreat or pause.
Instincts may suggest that pausing fundraising is the best course of action. Instead, our counsel is to press forward thoughtfully and with confidence.
Your tactics may change—direct appeals may be modified, donor meetings and events could take a different direction, but continued communication keeps supporters connected to the ongoing importance of your work.
Organizations in multi-year fundraising campaigns are likely to experience some kind of disruption to ‘business as usual’ during the course of the campaign, whether from external drivers or internal. For this reason, we recommend taking the long view and maintaining momentum even when the landscape shifts.
Philanthropy Has Motivators Beyond Economic Drivers
While political and economic changes may affect your organization’s operations, remember that most donors give because they believe deeply in your mission and the people you serve.
A 2023 Bank of America Study of High-Net-Worth Philanthropy confirmed that personal values and commitment to specific causes remain the primary drivers of giving—far and above tax incentives or decisions driven by the economy.
This is especially true when it comes to major gifts, which are most often cultivated and secured through one-on-one conversations and customized proposals. These personalized interactions provide the opportunity to understand each donor’s specific situation, concerns, and motivations.
Rather than making assumptions about how donors might be impacted by the changes in the market or policy changes, your fundraising team should listen attentively to individual perspectives and tailor approaches accordingly. Some donors may be financially unaffected and even motivated to increase their giving, while others might need more flexible giving options. These nuances can only be understood through direct, thoughtful engagement.
Adapting Your Strategy
While fundraising should continue, your approach and plans may need thoughtful adaptation. For organizations facing substantial funding cuts, this is not simply about minor adjustments but potentially significant strategic pivots.
Focus on what remains within your control: How you communicate, which constituents you prioritize, and how you engage your most committed supporters during challenging times.
Here are four strategies for nonprofit leaders to consider:
- Acknowledge the current reality: Be transparent about challenges you may be facing while emphasizing your commitment to finding a path forward. Donors appreciate honesty and the opportunity to be part of your solution. This has to be carefully timed and orchestrated. Leaders should equip frontline fundraisers and board members with talking points, resources, and training to be effective ambassadors of this message.
- Focus on those you serve: Center your communications on the people, constituents, or causes that depend on your work, highlighting how donor support helps ensure continuity of mission even during transitions.
- Explore creative funding approaches: Consider whether strategies like outreach to donors with donor-advised funds, partnership with foundations, or creative options such as crypto donations might help bridge potential funding gaps. Some donors may consider accelerating pledge payments to support more urgent cash-flow needs.
- Diversify your revenue streams: If your organization has been heavily reliant on government grants or another single funding source, now is an opportune time to evaluate your overall funding mix. Investing in developing a robust donor pipeline—from annual giving through major gifts—can provide greater stability and resilience. Organizations that deliberately balance their funding sources across individual philanthropy, foundation grants, corporate partnerships, and fee-for-service programs may be better positioned to weather funding shifts in any single area. This diversification strategy requires thoughtful investment in development infrastructure but yields long-term benefits in organizational sustainability.
The Graham-Pelton team aims to deliver fundraising with confidence and clarity, something that may feel impossible or unrealistic at this moment in time.
To be sure, the path forward may not be clear, but confidence comes from focusing on what is within your control—engaging your community with authenticity, articulating a compelling vision, and staying committed to your mission. And, remain confident in the enduring generosity of individuals and the power of philanthropy to drive meaningful change.
