Fundraising Priorities for Tough Times: A Nonprofit Survival Guide in 9 Steps
Just when we thought the chaos of the pandemic was behind us, in come new economic headwinds.
Decision scientist Cheryl Strauss Einhorn has even suggested that we’ve entered a “perma-crisis world,” where “waiting for stability is like waiting for a train that’s not coming.”
This new reality requires different strategies and behaviors. For those of us in the nonprofit community, former assumptions about fundraising may no longer hold. Approaches that worked even recently may now be obsolete.
My blog “Navigating the New Normal” (March 2025) shares business insights on the four states of VUCA (volatility, uncertainty, complexity, ambiguity), with suggestions on how to navigate them as a nonprofit.
Below are more practical, actionable steps to take now, with a focus on small and midsized nonprofits. I’ve also included steps to consider in looking to future-proof your nonprofit as much as possible.
Nonprofit Survival: Short-term
1. Cash is (still) king. Your first priority is to identify your shortest, surest paths to reliable revenue. Every nonprofit will be different.
This may be your annual giving program. Focus on renewals and upgrades, then consider creative acquisition efforts. Since annual giving is direct marketing, double down on communications. Make sure you have matching gift software installed on your website and market this option often. (See also #4 below.)
This may be your board. Make sure your board giving is up-to-date. Consider a special, additional or upgrade request. Ask your board chair to lead this initiative.
As with the pandemic period, it may entail asking grant funders if they would consider releasing restricted awards to cover general operating needs. Broach this request prepared with a compelling, specific case for why this is mission critical. Look for ways this adjustment can still tie in with the purpose of the original grant. Use this additionally as an opportunity to have open, honest dialogue with foundation and corporation funders. They are struggling too. How are they addressing their own challenges? What are they seeing from other grantees? Now is the time to question everything and learn from others.
It may include asking a few, special individual donors if they'd be willing to step up with bridge funding to address short-term budget gaps. Have a plan for what you see on the other side of that bridge. (See #8 below.)
2. Emphasize sustainer giving. Lean into your monthly sustainer program. If you don't have one, build one now. Underscore the real value that small contributions have on your work, especially in today's economy. Research shows that recurring donors rarely cancel a pattern of sustainer giving. Reliable revenue matters now more than ever.
3. Bring your board closer. All boards have three main duties, chief among which is a "duty of care." This means they are responsible for ensuring that your nonprofit demonstrates reasonable judgment in decision-making, and that you have the necessary resources to achieve your goals.
Make sure your board understands that you are in this together. Many board members are corporate executives who have experience navigating business cycles. If you do need to "trim your sails," look to them for advice on principles and practices. What strategies and tactics do they use in their own sector? Enlist their guidance in making decisions for your own nonprofit.
If you don't have clear policies or consistent practices for board giving, now is the time to develop them. Never, as they say, waste a good crisis. Use this as an opportunity to clarify your giving expectations. Underscore why board giving matters. While the level of giving you expect is a matter of organizational preference, in this economy board giving itself should be non-negotiable.
4. Communicate. Now is the time to rev up your communications. Many nonprofits cut back on marketing when budgets are tight. This is counterproductive on so many levels, not least of which is fundraising. Fundraising success requires a "steady drum beat" of awareness. In a tough economy, communicate more, not less. Since communication preferences are highly generational today, use all of your channels in targeted ways. In all cases, focus on impacts, outcomes, and storytelling.
Impacts are largely qualitative. They underscore the societal value of your work largely by storytelling. Help your supporters understand the real-world change they are making when they contribute to your work. Focus on human connection.
Outcomes are more quantitative. They focus on numbers and metrics to convey scope and scale. They demonstrate how your work is "moving the needle" with empirical evidence. But don't flood the zone, choose your numbers carefully.
Research shows that stories have staying power. They touch us emotionally and motivate us to take action. (As they say, "numbers make you think, emotions make you act.") Tell affecting stories. Share meaningful numbers. Communicate often. Through all media. Make readers feel in their bones what will happen if you don't do what you do. Marketing has never been more essential.
Nonprofit Survival: Long-term
5. Rainy day fund. If you don't have one, plan now to build a reserve fund. Six months of annual operating expenses is often recommended, three months at minimum. Reserve funds are not just the fortunate result of unexpected windfalls. They require steady discipline and should be planned and built with intention. One approach is to round up your annual revenue goals internally by a small percentage each year, then use this surplus to grow your reserve. Some nonprofits even include a dedicated line item in their operating budget to build a reserve. All supporters value seeing a reserve fund as a measure of fiscal responsibility and a way to mitigate risk.
6. Indirect on grants. Make sure you are capturing indirect on all of your grants. If your nonprofit doesn't have a recommended rate that has been endorsed by your board, set this now. The federal de minimus rate of 15% is a common choice. Discuss this with all of your current and potential grant funders moving forward, so you don't leave valuable unrestricted funding "on the table."
7. Network building. Broaden your network with intention. Ask each board member to share one "warm lead" or to open one door to new potential supporters. This could be an individual, a corporate contact, or a foundation representative. Start with awareness-building or possible volunteer opportunities. Partner with board members in defining and executing strategies for their recommendations. Use this as an opportunity to strengthen ties to your board. Celebrate progress at board meetings to incentivize members.
Special Note: Be purposeful about the individuals you choose for outreach. Cultivation is a slow, steady process. Focus on individuals who care about your impacts and outcomes, not just your broader mission. To paraphrase marketing legend Robert Collier, "join the conversation that's already going on in your prospect's mind" about the societal problems you solve.
8. Scenario analysis. Uncertainty is our new normal. Develop the muscle of scenario analysis. Don't get ready, stay ready. Build this mindset into your planning culture now. Sharpen your decision-making by anticipating alternative outcomes. This includes:
Financial forecasting for best case, worst case, and likely case scenarios.
Pressure testing (sometimes known as premortem thinking or "what if" thinking) at all levels of planning to uncover blind spots, weaknesses, biases, and gaps.
9. Business model review. Now is the time to re-evaluate your business model. The economy, society, and philanthropy tend to evolve in tandem. When the ground shifts, adjusting fundraising tactics is like changing the curtains when you should be inspecting the foundation. Business models should be reviewed on a regular basis, since they're informed by market forces. When the economy is unstable, this is even more important. Your fundraising success depends on it.
