Resilient and Ready: How Nonprofits Can Stay Strong in a Shifting Political Landscape

The landscape for nonprofit organizations is shifting rapidly under a new federal administration, as changes are proposed to both grant administration and language around diversity, equity, and inclusion (DEI), underscoring the importance of nonprofit organizations having independence outside government funding. Policy changes, shifts in funding priorities, and new regulations can have profound implications for how nonprofits operate and sustain their missions. While there are many unknowns and uncertainty is unsettling, it is also a moment for decisive action. 

Nonprofits are an imperative arm of communities, holding the line to serve the most vulnerable and marginalized. In times of uncertainty, it is a strong reminder to assess the state of your organization, diversify revenue sources, and reaffirm your commitment to the communities you serve. By staying informed and steady, forging strategic partnerships, and leveraging data-driven decision-making, nonprofits can weather these changes and emerge even stronger. This blog outlines key strategies nonprofit leaders can implement to remain resilient, protect their staff and client base, and continue making a meaningful impact. 

Understanding the Impact of Policy Changes

In times of rapid governmental shifts, nonprofits must maintain an active awareness of evolving policies that could influence their operations. Policy changes can occur across all three government branches—executive, legislative, and judicial—impacting funding streams, compliance requirements, and the language permitted in program execution.

Monitor policy changes at the federal, state, and local levels through your networks, but don’t get overwhelmed by the volume of information and eye-catching headlines. Awareness allows organizations to anticipate challenges and adjust strategies accordingly. Engaging with nonprofit advocacy groups at the national, state, and local levels can help you synthesize and filter updates relevant to nonprofits in your area. 

·      National: National Council of Nonprofits-Provides calls to action, policy updates, and analysis. Submit your story about how a pause in federal funding would impact your organization, programs, and clients. 

·      State: State nonprofit council or coalition (Join their mailing list and reach out to their policy lead!)

·      Local: Contact your local United Way! United Way often acts as the convener and organizes advocacy efforts in local communities.

By monitoring updates from their community and sector, nonprofit leaders can not only react to shifting policies but also become proactive advocates, giving a voice to their staff and clients and holding their ground to remain stable and effective in an evolving political climate.

 Strengthening Financial Sustainability and Revenue Diversification

Revenue diversification is generally a wise financial goal for all organizations. A heavy reliance on government funding leaves organizations vulnerable to sudden policy shifts and budget cuts regardless of who is in office, which risks long-term financial sustainability. A best practice is to assess current funding streams and develop a plan and a runway to shift revenue sources to unrestricted funds. This is a moment to engage your board and key stakeholders in financial planning, strengthening donor engagement, and stewarding relationships with private foundations to build new revenue streams. Educate your board and donors on the impacts that changes in federal policy and funding could have on your operations and services. 

Use this moment to educate your community and raise funds to ensure you can continue your mission-driven work without disruption.  Explore if a capital campaign is a realistic goal for this year. Capital campaigns allow organizations to raise significant funds for strategic initiatives, operational expenses, and scaling programs, reducing dependence on fluctuating federal and state funding. A well-executed capital campaign begins with a feasibility study to assess donor interest and organizational readiness. Developing a compelling case for support and engaging key stakeholders sets the stage for a successful campaign. 

Additionally, organizations can explore social enterprise initiatives, such as offering professional training or consulting services or creating products and services like toolkits and templates that generate income while furthering their impact. For example, a nonprofit providing workforce development programs may offer corporate training services, which generates income, increases reach, and expands the capacity for mission-driven work. 

Internally, explore if you can shift staff salaries and operational costs away from restricted federal grants towards unrestricted dollars. Private donations and foundation grants can allow for more adaptability in operational spending, reducing vulnerability to sudden funding cuts. Nonprofits should prioritize building unrestricted operating reserves that can sustain essential expenses in case of disruptions. Additionally, advocating for general operating support from donors—rather than project-specific funding—ensures that organizations can allocate resources where they are needed most. 

Till the Soil in Front of You

An image of working the earth and prepping the soil to support a thriving crop keeps popping into my mind. With all the changes and uncertainties in our larger environment, it is more evident than ever how important the ground is in front of us. While we keep an eye on the big picture, keep in mind that the healthier your soil is, the stronger your crop will grow. I may have lost the plot on the analogy, but the spirit remains—invest in your local partnerships. When your local relationships are healthy and functional, you can come together quickly, adapt to change, and act as a robust safety net for your community in times of need. 

In moments of uncertainty, nonprofit leaders are trusted, nonpartisan sources of information. Whether addressing funding concerns, policy or program changes, transparent and timely messaging can help alleviate fear and confusion. Provide clear updates to stakeholders, clients, and partners to build confidence and trust in your organization’s ability to navigate shifting landscapes. Formalizing lines of communication and information sharing can also ensure that you have an established vehicle for sharing updates, available resources, and opportunities to join your advocacy efforts. 

As we reflect on building resilience, adaptability, and holding the line, it’s important to acknowledge another critical component of sustainability: self-care. With Valentine’s Day reminding us of love, now is the perfect time to turn some of that love inward. Nonprofit leaders often pour everything they have into their mission, but you cannot pour from an empty cup.

Refill your own tank. Take a deep breath, go for a walk, work on a puzzle, share a laugh with a friend, or enjoy a good hug. Look for joy in small moments, lead with a grateful heart, or even get your hands in the soil and garden—just as we nurture our communities, we must nurture ourselves.

Remember, you are part of the good you want to see in the world. Treat yourself with the same kindness and care that you extend to others. Investing in your well-being ensures that you can continue to be a strong, compassionate, and effective leader for your community. Together, we continue the work of building healthy people and communities.