Fear and Trembling: The Current Non-Profit Crisis

The non-profit industry is coming up against another crisis.  With the latest freeze on government funding for many agencies, we will start to see a ripple effect down to the everyday non-profit sector.

This is not just affecting the NIH or WHO or other big government agencies. It’s affecting smaller NGO’s who rely on government funding for some or a large portion of their funding.

There have already been threats from the new administration’s officials to stop funding public media.  That is just one direct example, but think about cancer research, other health and community-based block grants that trickle down to non-profits.  All of that is in jeopardy.
We must understand that the way government has been functioning in the United States for the last 80 years starting with the Roosevelt administration, and which has been chipped away since the 1980’s, is on a fast track to becoming obsolete.

The current administration abhors government and that is why we are starting to see the dismantlement of it.  MAGA government officials have a philosophical difference on what the role government plays in its citizen’s life.

So, this is the reality today.  And this is the reality at least for the next four years. Personally, it’s abhorrent to me, but I also must deal with the reality of it.  I can choose to wring my hands and gnash my teeth with fear and trembling or figure out how to survive and thrive through this.

In one sense, this is another Covid moment for non-profits.  And our advice is the same now as it was then: You must diversify your funding sources so that you can weather any financial storm.

While I know this sounds self-serving, investing in your mid and major gift programs is of the utmost importance right now. And, if you are already doing that well, then investing in new donor acquisition is key too.  Investing in all of your individual donor efforts is critical IF you want to be viable long term.

The silver lining in this dark cloud right now is that it forces us to think creatively.  Additionally, it should propel us to use bold leadership.

I know many non-profits are freaking out right now. Many have put out moratoriums on all new spending or investing. We’ve had several prospective clients who were ready to sign to build their major gift programs only to pull away because their organizations leadership is worried about any new spending.

I get it.  So, take a moment to gather your thoughts and then make the bold and decisive move to invest in your relationship fundraising program. You cannot rely on government sources for your funding any longer.

Instead, build relationships with your donors. Find out their passions and interests and inspire them with compelling offers to take their giving to another level and engage them like never before.

This is the time for bold leadership in the face of uncertainty and chaos.  You cannot go wrong investing in people.

Jeff