The Sky Is Falling! Or is it?

According to The Nonprofit Times, Half Of NPO Execs Worried About Finances Before Freezes:

• Nearly 47% of nonprofit execs said they didn’t have the necessary resources to deliver programs and services in 2025
• 50% of executives indicated concern about their financial stability, up from 38% just a year ago
• 65% reported that their organizations were hampered by staff shortages
• 75% reported their organization had gone through staff reductions or cut programming
• 77% had an increase in demand for programs and services
• 87% reported they saw an increase in requests for mental health services

These concerns surfaced prior to the Trump-Vance Administration’s cuts to federal funding for USAID and other government funding sources. Since then, we’ve heard a continuing cry across the nonprofit sector for restoration of federal funding and the impending ‘catastrophic’ impact of decreased funding.

If you accept all of this at face value, we’re in a bad place as a sector.?

You might even think the sky is falling.

But we don’t necessarily see it that way.

There’s no denying that people are gripped with fear, uncertainty, and doubt right now.

However, in our most recent research study (conducted just prior to the federal funding freeze), the U.S. donor community had a different perspective on giving for the future.

The majority of respondents to our national donor survey reported high levels of economic optimism.?

• 85.5% of respondents expect their giving to remain the same as last year or to increase slightly, even for those who report being “significantly impacted” by inflation
• 43.4% reported that their giving increased significantly from 2023 to 2024, and only 14.4% reported that their giving decreased
• Despite 70% reporting rising household costs as a challenge, optimism about personal income growth sustained confidence in future giving

The majority of organizations that receive high levels of funding from individual donors are likely to fare well, even during these difficult times. The same may not be true for those organizations that have traditionally received much or most of their funding from government sources.

What we are not seeing, however, is a major change in giving from individuals or even private foundations.?

In fact, many individual donors continue to be very bold on the future and willing to support the organizations that are most important to them.

The major disconnect right now, and what you as a fundraiser or nonprofit leader are likely experiencing is the FUD factor.?

Fear.

Uncertainty.

Doubt.

The majority of donors remain optimistic about the future and their giving.?

But nonprofit leaders and fundraisers, to a lesser extent, are gripped with fear, uncertainty, and doubt.

The data suggests you shouldn’t be. The data suggests that you should be leaning into relationships right now. In fact, we saw the same hold true during the 2008 - 2009 financial crisis and again during the COVID-19 pandemic. In both of those cases, the organizations that pulled back and gave in to their fears got crushed. Many shut down. Those that didn’t, emerged as much smaller, less effective versions of their prior selves.?

But the organizations that doubled down on building and strengthening relationships with their supporters did incredibly well coming out of both of those times of crisis.

As we’re fond of saying at DickersonBakker, Relationships Change Everything?.?

The important thing for leaders and fundraisers is not to let your own fear, uncertainty, and doubt paralyze you at this critical time. If you shrink from the challenge, your organization and those you serve will suffer.?

Boldly stepping forward in faith is essential today.

Here are a handful of ideas for how you can be bold and focus your energy on creating positive impact in the face of FUD.?

1. Prioritize relationships. In economic downturns or times of uncertainty, donors want to be reassured. You can do that by being present with them. In-person meetings are great for this, but they're not the only way. Another great way to be present is through the regular use of video to tell stories of impact, encourage supporters, and even acknowledge that you realize times are challenging.
2. Focus on what matters most. If your org does a dozen things, now is not the time to focus on your least known, least interesting programs. Now is probably the time to double down on your best known, highest value program offerings. Remind donors how their support makes those possible.
3. Connect supporters directly with those you serve. Tell deep, rich, human stories that show your supporters how important they are in shaping and changing the lives of those you serve.
4. Offer and celebrate downgrades. If a donor typically gives you $1,000, but they only give $150 this year, reach out to them. Tell them how much you appreciate their gift. Acknowledge that you know they could have stopped. But you're grateful they stuck with you at a lower level. Tell them how important their continued participation and support are to your organization. Thank them for not bailing on you.
5. Call or text as many of your supporters as you can. Thank them. Remind them that you appreciate them and value their partnership.
6. Create new, compelling offers that are bold, vision-forward, and that donors won't be able to ignore. Even during downturns, there are donors who continue giving, and some that even increase their giving. The nonprofits that capture this value are those that have something bold and compelling to offer supporters.
7. Go where the money is. And in a downturn, that place is donor advised funds. That's because this money is already set aside for giving. The donor doesn't have to balance your request against their personal finances. Lean into this funding source and invite every donor who has a DAF to give generously right now.
8. Activate new major gifts. This is one of your greatest opportunities. You undoubtedly have high capacity donors on your file who are only giving you $50 or $100 right now. Because that's all you've asked them for. And because your asks aren't inspiring. But if you give them a reason to make a big gift and you show them how a $1,000 or $10,000 gift will transform a life today, many will step up and make that gift to you for the first time.
9. Speak and write with clarity. Now is not the time for flowery language or opaque statements. Be clear. Be specific. Use short words and sentences. Don't tell donors that their giving will provide hope or do more good. Give them tangible examples of how donations positively change lives. And don't be shy about your needs. Bold vision and bold asks will inspire bold giving.
10. Say thank you more. Showing appreciation in consistent, authentic ways will remind supporters why they chose to give to you in the first place, and why an investment in your organization continues to provide them with value every day.

If I can help you through this challenging time, please know that I'm just one email, phone call, text, or LinkedIn message away. Reach out at any time!

CHECK OUT THESE 5 TIPS TO DRIVE MORE ONLINE REVENUE

HAVE YOU SEEN THE NEW VIRTUOUS MARKETPLACE?

My friends over at Virtuous are doing an amazing job at building value into their product line to help nonprofits grow generosity amongst their supporters. Whether you're looking for strategic guidance, platform support, or even integration help, this is the place to go.

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LET'S HANG OUT!

One of the things I love the most about the nonprofit community is our shared focus on building and cultivating relationships. There's no better way to do that than to spend time together in-person. Heres' a list of upcoming events that I'm attending. If you're planning to attend one, let me know. I'd love to visit with you!

• April 25 - April 29, 2025: AFP ICON | Seattle, WA | Purpose & Profit Connect Event
• July 30 - August 1, 2025: The Bridge to Integrated Marketing | Inner Harbor, MD | Purpose & Profit Connect Event

TAKE THE 90-DAY LEADER'S JOURNEY!

If you want to become a leader of significant impact, you need to take the 90-Day Leader’s Journey. In this 90-day email course I’ll share with you 90 key insights on leadership Character, Culture, and Competence that I use to train leadership teams in professional service firms every day — and that you can use to accelerate your own leadership impact!

OPTIMIZE YOUR SALESFORCE CRM FOR GREATER IMPACT

Does your organization struggle to get your Salesforce CRM to do the things you need it to do? Do you want to pull your hair out because you feel like your CRM is working against you instead of for you?

If this feels familiar, my friend Jim Krizan over at Higher Rock LLC can help you.

His team of expert Salesforce consultants can help with anything from Salesforce implementations, platform integrations, maintenance, reporting, and anything else you need to effectively use your Salesforce CRM.

You can get the help you need to maximize the impact of your Salesforce CRM.

Book a no-cost, no-obligation call with Higher Rock LLC today!

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