On Raising Funds Against the Wind

Since starting my nonprofit development career in 2001, I’ve fundraised through recessions, recoveries, expansions, and contractions. I’m no stranger to a shifting landscape, but this moment feels different because the institutions that once stabilized communities are now perpetuating instability.

Raising money is never easy, but if you started fundraising anytime between roughly 2010 and 2024, you entered the field during unusually favorable times. Yes, the COVID-19 pandemic happened during this period, and it was certainly tragic and scary; however, the government and philanthropic sector instituted supports to make sure human services nonprofits - and the people we serve - didn’t descend into freefall.

This particular moment is more ominous because federal policy and escalating rhetoric have created an increasingly hostile environment where nonprofits are viewed as adversaries, rather than partners. In 2025 alone, we saw the Office of Management and Budget (OMB) institute federal funding freezes (with subsequent legal pushback), DEI walkbacks, and the government’s attempt to expand Department of Justice (DOJ) and IRS authority to investigate, prosecute, and potentially revoke the tax-exempt status of nonprofits engaged in “acts of political violence” or “financing domestic terrorism.”

Essentially, the nonprofit sector is under attack by its own government.

The fallout to nonprofits is already manifesting in very real ways. In May 2026, the Center for Effective Philanthropy released its “State of Nonprofits 2026” study. Key findings include:

• 73% of nonprofit leaders report increased service demand alongside rising financial instability.

• 48% have experienced pressure to reframe how their work is described.

• 29% have cut staff. 

• 26% have reduced services. 

With the affordability crisis, compounded by cuts to federal funding programs like SNAP and Medicaid, human services nonprofits are increasingly becoming providers of last resort. The pressing question then becomes: how can they sustain themselves and continue advancing their mission? In this article, I'll walk through how the fundraising landscape has shifted and what to do about it.

What the Good Years Actually Looked Like

Fundraising during the Great Recession (which incidentally was when I started my consulting practice) was no walk in the park, but I still got the sense that the government and the philanthropic sector were working together to stabilize lives and the economy. Nonprofits experienced funding contractions and a slight uptick in closures, but overall, both private and public funders stepped up to bolster the nonprofit sector and the economy at large.

Despite losses to their endowments, private foundations maintained steady giving or even increased grantmaking beyond the standard five percent distribution. Federal intervention arrived through the American Recovery and Reinvestment Act (ARRA), injecting $800 billion in federal dollars aimed at economic recovery efforts, including housing, workforce development, nonprofit capacity building, and health and human services.

Fast forward to March 2020. Things were rolling right along when the global pandemic hit. Despite widespread fear and immense human losses, this was actually a time when foundations allowed their humanity to shine.

Not only did foundations open their coffers, but they were also sympathetic and flexible. Realizing that my clients were holding the line and literally risking their lives to serve their communities, program officers relaxed restrictions. They allowed dollars that had originally been allocated for program support to be diverted to general operating support. Many did away with reporting requirements. One very considerate funder even awarded a client a grant specifically for staff well-being.

Similar to the Great Recession, the government stepped in to bolster communities and the economy with programs like the Paycheck Protection Program, CARES Act, and the American Rescue Plan Act. While neither the Great Recession nor the COVID-19 pandemic was a picnic, in these two instances, the nonprofit world, the philanthropic sector, and the government were at their best in terms of working together to meet the needs of the people.

Did Philanthropy’s Racial Equity Moment Actually Deliver? 

The pandemic and subsequent recovery dovetailed with a social movement and philanthropic focus on racial equity - at least on paper. After the murder of George Floyd spurred one of the largest protest movements in U.S. history, foundations and corporations accelerated grantmaking to racial equity.

DEI became so popular that funders regularly included questions on their applications about nonprofit diversity indicators. They asked about DEI plans. They asked about lived experience and engagement from participants of color. They rigorously and thoroughly grilled my clients about this, never fully realizing that BIPOC-serving nonprofits had been walking the walk for years and were well ahead of the curve.

A lot of funders, especially corporations, made a big deal of showcasing their DEI grants. They published their DEI commitments and posted them on their websites. They hired Chief Equity Officers. But this was largely performative: when the checks were cut, they went to larger institutions.In the end, my clients - many of whom were Black-led and Black-serving - didn’t benefit from the focus on racial equity, at least not in a substantive way. They saw a few new dollars here and there, but nothing transformative and certainly not a fundamental distribution of resources.

If there was a silver lining, DEI being in vogue meant that clients were free to name their truths in grant applications for the first time I can remember. They were finally free to name how racial inequity colored virtually every aspect of their communities, from infant birth rates to long-term public health. They were finally able to speak their truth in open terms without softening their language or experiences to make it more palatable for mostly white funders from privileged backgrounds. At least there was that. 

The Winds of Change

Fast forward to today. Unlike past crises, the current turmoil sweeping the nonprofit sector has been manufactured by the federal administration, which sees nonprofits as the enemy. As federal assistance programs face cutbacks and the commitment to DEI weakens, nonprofit human services organizations are increasingly left to carry the burden of caring for their communities. And as the sector contracts - which is the only logical outcome given federal funding cuts and philanthropy’s tepid response - these nonprofits will be left to absorb the most pain.

So, What Do We Do? 

Nonprofits have weathered crises before, even if never one shaped quite like this. Yet, the work before us is the same work it’s always been: figure out what’s actually within our control and do that well.

There are no magic solutions here, and anyone who tells you there are should be viewed with extreme skepticism. What we need here is strategy, stronger positioning, deeper relationships, and absolute clarity about who you are and why you matter. Yes, this requires hard work (yes, more work, I know you’re tired) while understanding that the situation might get worse before it gets better. But in times like these, the only way out is through. The following recommendations focus on institutional philanthropy because that’s my area of experience; however, many of the principles can be applied to individual donor giving as well. 

Protect your mission. Build a solid organization with solid programs with a focus on the long game. Letting mission drift take hold because you’re chasing the money is a recipe for disaster.  

Be okay with contraction. The message embedded in our hyper-capitalistic society dictates that nonprofits must either be growing or dying. However, we don’t hear corporations like Meta or Microsoft apologizing for mass layoffs. During times like these, there’s no shame in doing what it takes to ensure organizational sustainability, whether this means contracting, realigning programs, or making more efficient use of resources.

Fundraising strategically. When money is tight, a scarcity mindset can set in, causing us to flail about and feel like we’re missing out if we don’t pursue every other opportunity. From experience, I can tell you that all this will do is run you ragged while depleting your resources. At a time when competition for dollars is fierce, a targeted, intentional approach will win out over a “spray and pray” method. Whether we’re talking about individual donors or grant applications, don’t act randomly or haphazardly. Instead, step back and breathe. Take the time to do your homework, ensure alignment, and put your best foot forward.

Be resilient. In this fundraising climate, you will likely receive far more declines than in previous years. Rejection flat-out sucks. But instead of letting it get you down, use each decline as an opportunity to learn. Whenever my clients receive a decline, I encourage them to request a conversation with the funder to find out why. Was it something about the program design? Was the funder overwhelmed with applications? Is the door still open? By taking the time to find out - something few organizations actually do - you will stand out. And this leads to my next point. 

Cultivate relationships. Embed this practice throughout your fundraising consistently, not just when you’re in crisis. Make time to chat with your donors and funders. Invite them to site visits or to your events. Listen to how they’re doing and what they’re seeing. Share your wins with them. 

Stay visible. Funders, more than ever before, are doing their own research to proactively identify the organizations they want to fund. Stay visible and ensure that your organization’s name is known by investing in communications and PR. Have a solid web presence, including a well-designed, easy-to-navigate website with a clear way to donate. Ensure that your Candid and Charity Navigator profiles are up-to-date. Make sure your reputation is pristine.   Lastly, be consistent. There’s no quick fix here. Carefully lay your bricks one by one. Build a strong organization with solid programs, a diversified funding base, and a focus on the long game. Ensure that what you build can withstand the test of time.  Photo Credit: “Brick wall close-up view” by Pawel Wozniak, licensed under CC BY-SA 3.0 via Wikimedia Commons.