Fundraising in Uncertain Times: How to Be Proactive to Secure Your Funding

Since the start of the Trump presidency, policy decisions such as the numerous executive orders, the rollback of DEI initiatives, mass government layoffs, the Office of Management and Budget (OMB) memo freezing federal dollars, and tariffs on Canadian imports, have nonprofits deeply concerned about the future of their funding. 

At the sector level, we are taking action. Democracy Forward, on behalf of the National Council of Nonprofits, the American Public Health Association, Main Street Alliance, and SAGE, filed a lawsuit the day after the OMB memo, which resulted in an injunction blocking the freeze. Despite this reversal, however, many organizations still are not receiving the funding they should be, and with mass federal layoffs, many nonprofits have not been able to get in touch with their points of contact to get clarity on their funding. Meanwhile, executive orders, such as those terminating equity-related grants and contracts, also threaten the funding, and the very missions, of numerous other groups. 

Amid all this uncertainty, what is clear is that nonprofits will need to quickly find alternatives to federal funding to secure the future of their services. So, here’s what you can do to be proactive in these challenging times. 

Understand the Impact on Your Organization 

The first step is understanding where your funding comes from. Break down how much you were to receive in the calendar or fiscal year 2025 from federal and state grants, as well as foundations, corporations, and individuals. What do you project on a monthly basis that you will or will not be receiving?

Communicate Openly with Stakeholders 

Once you understand how much of a funding gap you may have, make sure that this is communicated. First, everyone at your organization needs to know this. Staff will understandably be concerned about the future of their positions, as well as your organization’s ability to continue to provide services, but transparency is the best policy, so that your entire team can be on board with finding solutions. Second, be open and honest with your donors (individuals, corporations, and foundations). It is important to know where your supporters stand and how their giving may be impacted as well in light of these policies. 

Communicating with Corporations
Just like nonprofits, corporations are concerned about complying with these executive orders. Many companies are scrubbing official DEI programs from their sites, in many cases finding alternative language, such as “economic opportunity and education” as a replacement. As these organizations assess their risk, it may impact the direct funding they provide, as well as employee matching gift programs, which may be reevaluated as well if employees are giving to causes perceived to be in line with DEI initiatives. 
Now is the time to schedule meetings with your corporate partners and sponsors to understand their policies and how you can continue to work together. 

Communicating with Foundations
Foundations have had a variety of reactions to the recent government policies. Some, such as the Freedom Together Foundation and the McArthur Foundation have pledged to increase their grantmaking to help cover the shortfalls caused by lack of government funding. Others have adopted a wait and see approach, not yet putting out any formal statements. 

Similar to corporations, get a meeting with your point of contact at the foundations you work with to see how these policies will impact your current grants or future grant applications. 

Communicating with Individual Donors
In addition to meetings with your corporate and foundation supporters, you also want to have transparent conversations with your major donors as well. You can use language like, “We at X organization just wanted to keep you apprised of what we are doing in light of recent executive orders.” As we all know, these are extremely partisan times, so this could be a delicate conversation. Your donors may be fully supportive of these policy measures, taking a wait and see approach, or they may be opposed to them, but you can start by focusing on the numbers. Share with them the facts—these are the gaps we have in funding from these sources, the steps we’re taking to continue programming, and this is the impact we anticipate these funding changes will have on our ability to fulfill our mission. Gauge their reaction to determine the next steps. If they do not seem receptive, thank them for their support, and leave it at, you’re just updating them on the status of your programming and everything you’re doing to keep it going. If they are engaging positively in the conversation, you can look towards an ask to help fill the gaps. 

As we saw during the COVID-19 pandemic, generosity persists in times of crisis. Your individual donors may be more than willing to help, but they need to know that these gaps exist. In 2020, many organizations put out emergency appeals as their ability to provide services was jeopardized. If your lack of funding is still theoretical, emergency appeals are likely not yet called for, but if your funding has been cut, and you are in need, adapting those COVID-era communications for the current crisis may be essential. 

Identify Alternative Funding Sources 

Donor-Advised Funds (DAFs)
Donor-Advised Funds are already earmarked to be used for charitable giving and according to the National Philanthropic Trust’s 2024 DAF report, there were $251.52 billion in DAF charitable assets in 2023. As you have conversations with donors, if they are amenable to helping to compensate for your funding gaps, dipping into their DAF funds is a great way to do it. 

Release Restrictions on Endowments 
If you have donors who have given endowments, you may be able to ask them if they would be willing to release restrictions so that a portion of these funds can be used to cover operational and programming costs. Focus on the current critical short-term need, as well as plans for how funds can be reinstated in the long-term for the original intended purpose. 

Collaborate with Other Organizations 
If you are facing a scenario where you will need to reduce services, now may be the time to partner with like-missioned organizations for the good of your community. This can be a difficult sell to your board of directors, but there are numerous benefits to collaboration. For one, if collaborating means you can continue to provide crucial programs for your constituents, that is an obvious win. Second, foundations and other funders are ultimately there to support the betterment of their communities. They like to see organizations working together for a shared mission, so going in together on a grant application could help your collective chances of receiving the funding your cause needs. 

Join Our Advocacy Efforts 

Contact Your Members of Congress
AFP has created a page on our website for updates related to government policies. This page includes a form that you can easily use to send a message to your Members of Congress letting them know the impact that the lack of federal funding is having on your organization, and consequently, your shared community. Demonstrating the real-world impact of these decisions is crucial as Congress debates the budget for fiscal year 2026. 

Submit an Earmark Request 
Check the websites of your Members of Congress to see if they include an opportunity to submit an earmark request for your community. Many of the deadlines for these are quickly approaching, but if they are open and available, this is another great way to alert your representatives to the causes they should be prioritizing. 

Stay Informed 

• The recording of the March 5 webinar, Fundraising in Uncertain Times: How to Be Proactive to Secure Your Funding, is available to AFP members (log in to your BlueSky account) and includes more detail on the information from this article.
• Check the impact of recent government policies on fundraising page on the AFP website for key updates. You can also get updates to your inbox through the AFP daily newsletter, which is available to AFP members and the AFP weekly newsletter, which non-members may also subscribe to.
• You can also look to the National Council of Nonprofits, which has been releasing updates such as this continuously updated chart of Executive Order impacting nonprofits, this FAQs on the Executive Orders, checklist for what to do if your grant is canceled, and webinar recording.  
• Email paffairs@afpglobal.org with any questions or concerns.