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Helping Nonprofits Navigate the Treacherous 2025 Waters

By Tom Watson and Audrey Levitin

As consultants in a development consulting firm, we understand the profound challenges nonprofit organizations face during periods of political and economic uncertainty. The incoming Trump administration in 2025 brings with it a distinct set of challenges and potential threats to the nonprofit sector, including shifts in federal funding priorities, heightened scrutiny to the sector, and potential policy changes that could affect everything from tax-exempt status to charitable deductions.

Consider these recent news items:

Nonprofit groups are in the Trump administration’s crosshairs – “This all comes at a precarious moment for nonprofit organizations, given their robustness and integration in our civic framework. Labor unions, universities, museums, membership organizations and tenant advocates serve a significant public service — and under the next Trump administration are likely to face threats to their funding streams.”

Nonprofits Brace for Big Changes Under Trump Administration – “The 2025 legislative session is filled with peril for the nonprofit world — including threats to foundations, big endowments, donor-advised funds, and charities with close counterparts in the for-profit sector, such as hospitals.”

Elon Musk calls homelessness a ‘lie’ and ‘propaganda’ — and Trump is listening – “Musk — who has funneled more than $250 million into Donald Trump’s presidential campaign — is now directing lawmakers and the White House to make drastic, potentially devastating cuts to federal agencies that support millions of vulnerable Americans, including thousands of people experiencing homelessness.”

These stories are legion, and it’s clear the nonprofit sector is already a target for the radical changes envisaged by the new administration for American civil society. To be blunt: the landscape has changed dramatically, and very negatively for organizations who operate within the bounds of a liberal society that prizes collaboration and the effective use of public and private resources. No serious nonprofit leader can ignore this sea change, and the threats to both funding and the social contract. Our work consists of helping both staff and voluntary leadership to navigate challenges and opportunities, and build stronger organizations that help more people. We are always happy to have a conversation with nonprofit executives about what’s working – and what’s not.

To navigate this landscape effectively, nonprofit leaders must adopt proactive strategies in fundraising, strategic planning, and communications. Below, we outline several key recommendations to help your organization thrive despite these challenges

Fundraising: Diversify and Mobilize

The shifting priorities of the new administration may lead to cuts in federal funding for programs that many organizations rely on – in education, direct services, healthcare, immigrant, justice work and many more. Now, more than ever, it is critical to diversify your revenue streams. Start by assessing your donor base and identifying opportunities to broaden it. This might include engaging with younger donors through digital platforms, identifying and engaging major donors who share your mission, or seeking grants from private foundations that remain aligned with your cause.

Additionally, focus on cultivating recurring donations from grassroots supporters. Small, consistent contributions can provide stability in uncertain times. Use technology to automate and personalize donor engagement, and ensuring that supporters feel valued and informed about the impact of their contributions.

Finally, consider launching emergency or contingency fundraising campaigns tied to specific threats posed by policy changes. Demonstrate how your organization is a leader in addressing urgent challenges, making it clear how donor dollars will directly mitigate harm.

Strategic Planning: Adapt and Strengthen

Strategic planning is essential to weather the uncertainties of this administration. Begin by conducting a comprehensive risk assessment to identify vulnerabilities related to potential policy shifts. From there, develop contingency plans that include alternative funding sources, operational adjustments, and partnerships.

Invest in capacity-building initiatives that enhance organizational resilience. For example, prioritize cross-training staff to ensure operational continuity, and explore strategic alliances with other nonprofits to share resources and amplify collective impact. Collaboration can be a powerful tool to address systemic challenges and demonstrate unity in the face of external threats.

Another key aspect of strategic planning is advocacy. Equip your board and leadership team with the tools to engage in policy advocacy at the local, state and federal levels. Building relationships with policymakers and aligning with coalitions that support your mission will help ensure that your voice is heard during critical debates.

Communications: Craft a Narrative of Urgency

The political climate may bring increased scrutiny of nonprofit operations and agendas. It is imperative to control your narrative and communicate your impact clearly and consistently – and to stress urgency. Transparency is also important: ensure that your organization’s financials, outcomes, and stories of success are readily accessible to the public. This will build trust and preempt potential criticism.

Leverage your communications strategy to emphasize the human stories behind your work. Personal testimonials from beneficiaries, volunteers, and staff can underscore the real-world impact of your mission and resonate with donors and stakeholders.

Additionally, prepare to counter misinformation or attacks that may arise. Develop a crisis communications plan that outlines clear protocols for addressing negative publicity or political backlash. Empower a designated spokesperson to respond swiftly and effectively while staying aligned with your organization’s values.

Leadership in Difficult Times

The challenges posed by the incoming Trump administration require nonprofit leaders to demonstrate resilience, adaptability, and proactive vision. By diversifying fundraising efforts, strengthening strategic plans, and crafting compelling communications, your organization can not only survive but thrive.

Remember, in times of uncertainty, the nonprofit sector has historically been a beacon of hope and innovation. Your work matters now more than ever! By staying true to your mission and embracing change, you can continue to make a meaningful impact in the communities you serve.

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What We Tell Executive Directors: ‘You Need An Active and Engaged Board!’

Audrey Levitin

By Audrey Levitin 

Every non profit organization in the U.S. has a Board of Directors. Great organizations turn that obligation into one of their greatest assets. 

The executive directors we work with often ask us: “Why isn’t my Board doing more?” To put it more bluntly than the EDs usually do, why isn’t a great board the norm rather than the exception? 

I know this may come as a surprise but – despite protestations – there exists a built-in ambivalence among EDs and CEOs to build a strong and effective board. When inviting someone onto a board, an ED is essentially choosing his or her boss – the person they are accountable to. It’s natural to appoint people that satisfy a personal comfort level, those that “want to help,” but are not necessarily able or willing to give support,  or take their accountability role as seriously as they might.

There is a price to be paid for keeping expectations low. While there are short term benefits to lessening the work that comes with board engagement, you, the senior nonprofit executive, won’t be able to build a great organization alone. Without an engaged board you will not only lack resources but the accountability structure to propel a mission forward.

According to BoardSource, “The most successful fundraising organizations have a powerful fundraising partnership between the board, the executive, and the fundraising staff.” 

The sweet spot in confronting the oversight power of the board, and the accompanying work in energizing a board, is building a relationship based on mutual commitment to the vision of an organization and the people served. The goal is to stay focused on creating something brilliant together. Toward that end, here are several goals: 

  • Create a culture of philanthropy.

    The Board of Directors has primary responsibility for meeting fundraising goals. In partnership with the Chair, ask each board member to commit to personal and measurable development goals.

    The benefit is multiplying the numbers of people with outreach who can speak effectively about the important work of the organization, people who will develop the capacity and confidence needed to ask for support.
  • Develop a strong governance structure to create shared accountability and collaboration.

    It is the Board’s responsibility to ensure adequate resources needed to meet budget projections. Create a powerful partnership with the finance committee, to help the board understand how development goals are unfolding. This practice of mutual accountability is important during periods including end of year fundraising and major events. In this way the Board can help get ahead of short-falls or build on surpluses and successes.
  • Build a partnership with the Board by sharing responsibility as ambassadors for the organization. 

    Create a communications toolkit as a practical step to ensure your board and staff are speaking in one voice. A toolkit should include a mission statement, accomplishments, and draft emails and content for social media posts. 
  • Hold an annual training for your board in fundraising and communications.  

    An annual training is a good investment in keeping the accountability in board fundraising and encourages personal commitments. (We often facilitate this work at CauseWired).

Board members can also provide immense support in some of the most challenging of areas: keeping up with technological advancements, helping address difficult human resource issues and developing investment strategies.

As we so often tell our clients, by following these best practices, you are not in the untenable position of reporting out to an unengaged or uninformed board of directors – but rather working with true partners who can help you to achieve great things for the people you serve.

Audrey Levitin
Senior Counsel
audrey@causewired.com