Adapting to Potential Shifts in Funder Priorities

There is a lot of anticipation for the change of new administration at the end of this month. Firstly, know that any feeling of unpredictability, concern, or anxiety is not an isolated feeling but what many communities are also questioning. While the government leadership has proposed various plans for future programs, it’s essential to focus on what is concrete—what is actually happening right now—rather than abstract discussions.

Stay informed about any changes specific to your program, such as new legislation or funding reductions, that could impact its operations. A great way to keep track of funder priorities is to follow your funders on their active social media pages such as LinkedIn and Instagram. Funders tend to post details about their upcoming grant opportunities including new changes or deadlines. Similarly, a subscription to their newsletter or email list is another option to understand anything that may be different from previous years as a lot of funders like to be engaged and communicative in their areas of interest.

Even in times of unpredictability, another tip is to invest time in building up a savings account. Regardless of politics, your organization should strive not to be reliant on one main funding source. Here are a couple of approaches to building and sustaining a savings account.

• Include savings in the annual budget. Budget in a savings line, a set percentage that works best for your organization that accounts as a subtraction from the revenue. Treat savings as a non-negotiable expense, similar to paying staff or covering program costs. Prioritizing savings ensures that funds are regularly set aside.

   

• Automate transfers to savings accounts. Make it an unconscious habit. Automating savings makes it easier to consistently set aside funds without needing manual effort, ensuring savings aren’t overlooked.

   

• Consider the use of unrestricted funds towards savings. Use unrestricted donations or revenue for building savings, as these funds offer the most flexibility in setting aside money for the future.

Diversify funding revenues

Be proactive rather than reactive in diversifying funding sources. Start implementing new revenue streams now, when the organization is still fairly stable, and do not wait until a major funding source may run dry or that limits their funding capacity. For example, participating in online fundraising platforms such as Colorado Gives or GoFundMe. These sites offer year-round donorship that is safe and secure for anyone to give to your organization. Utilizing these platforms by having them clipped onto your website or social media is a great way to reach broader audiences with no deadlines or restrictions on their donation. It never hurts to diversify, even if the organization never has money problems!

The first quarter is a wonderful opportunity to re-establish partnerships with funders or pursue new ones. Think about the interpersonal connections you, your board of directors, or executive directors may have. That may be an area to focus on the depths of connections and where they could lead to. Here are some ideas that may spark some inspiration for your organization:

• Diverse grants in different sectors.  Diverse grants allow nonprofits to tap into different sectors (e.g., health, education, arts, environment) and reach a broader range of funding sources. This enables nonprofits to tailor their funding requests to specific needs.  Apply for both large, multi-year foundation grants and smaller, short-term project-based funding. This mix reduces the financial risk of relying solely on one type of grant.

• Pursue matching grants.  These grants require the nonprofit to raise a certain amount of funds independently (e.g., through donations) before receiving the full grant. This can help nonprofits expand their donor base and encourage new contributions. Diversifying income through matching grants fosters community involvement, as it incentivizes individual donors to contribute to the organization.

• Corporate Partnerships.  Offer sponsorship opportunities for specific events or programs. Corporations or local businesses can sponsor a fundraising event, a program, or even a specific initiative in exchange for visibility or marketing opportunities.

• Virtual Events. Online auctions, workshops, and events are a creative outlet for fundraising that engages the community to raise money.

Maintain transparency

As you navigate this new year, transparency is part of your organization’s success and longevity. Transparency is part of accountability, credibility, trust, and effectiveness, values that are crucial for the maintenance of external relationships. Transparent communication ensures that donors are not just passive contributors; they are informed partners in the organization’s mission. Donors who feel involved and see the tangible impact of their donations are more likely to give again. By updating donors regularly on progress, challenges, and successes, nonprofits foster a sense of shared purpose, which strengthens the long-term relationship with their supporters.

Similarly, be open with all of your supporters about any challenges that may come up that haven’t been an issue before. Provide clarity for your supporters about any financial difficulties so that they are informed and are not alarmed if/when the organization asks for more money or, in the worst case, for emergency money. This may look like publishing reports or breakdowns of how donations are spent through infographics and simplified visuals and how sudden current events may impact that.

Likewise, transparency also increases internal efficiency. When nonprofit leadership shares goals and financial reports openly with staff, it can lead to better alignment on objectives and more effective teamwork. By embracing transparency, nonprofits can strengthen relationships with donors, partners, and the public, ultimately improving their effectiveness and long-term sustainability.

Keep true to your mission

Remember the purpose of your organization and the intense passion for why the organization exists. While funders and their priorities may shift, your mission, programs, or existence does not have to. Solidify your current partnerships by practicing good donor stewardship with your existing supporters. These collaborations can be a support system by recourse sharing, giving references, or helping offset costs if things change. Keep building new relationships with like-minded funders that align with your mission so that there’s consistency in what you’re both working towards.

Marketing your brand

Keeping to your mission also means sticking with your brand. As digital fundraising becomes more popular and accessible, make sure there’s a process for taking this on. When promoting your organization make sure the methods of outreach (social media, newsletters, etc)  that there’s consistency in posting, a certified logo, and on multiple platforms to reach all areas of your audience. Going through many logos can lose the audience’s confidence, so it’s better to stick with an original one people know you for and work on new ones in the background without posting them until you find one you want to go with. Consistency is important for both your supporters and the organization.

Pour into your staff

This is a great moment to uplift and prioritize the well-being of your staff and volunteers during this transition. Providing space for professional development, team building, open dialogue, and transparency are a few tools to build resilience and equip staff for anything that may come.  Staff who feel connected to the organization’s mission are more likely to feel motivated and resilient. Reinforcing the importance of each person’s work and its impact can increase job satisfaction and commitment. Interlace these elements into strategic planning for the year so that there is already dedicated time and resources set aside for organizational development. To do this consider the following:

• Mental health workshops. Nonprofit staff often work in high-stress environments. Offering development opportunities focused on mental health, stress management, and resilience can help staff maintain their well-being while continuing to perform at their best.

   

• Mentorship Programs. Access to a mentor provides staff with personalized guidance and support, which is especially valuable for early-career professionals or those transitioning to new roles. Mentorship programs foster long-term professional growth and enhance retention.

   

• Promote work-life balance. Encouraging staff to take breaks, use their vacation days, and avoid overworking helps maintain their physical and mental health. A healthy work-life balance also helps staff stay energized and engaged in their work. Set clear expectations about work hours and discourage after-hours communication. Lead by example by ensuring leadership also respects work-life balance.

   

• Celebrate personal and organizational achievements. Take the time to recognize how your employees have grown in times of challenges and prosperity, whether in their personal or professional lives. When staff feel that their contributions are acknowledged, it enhances their resilience and job satisfaction.

As a people-facing sector, it is important to set the expectation that the same energy used to serve your community is being shared back into the organization.

Conclusion

As you embark on this new year, remember that the heart of your organization lies in its unwavering commitment to its mission, the resilience of its team, and the strength of its community. While external changes may bring uncertainty, they also offer opportunities for growth and innovation. By staying informed, diversifying your funding, fostering transparency, and nurturing your staff, you can build a more resilient and adaptable organization. Embrace this time as a chance to reinforce your foundations, inspire confidence in your community stakeholders, and boldly pursue your vision for 2025. Together, we can navigate these shifts and continue making a profound impact on the communities we serve.