With charitable donations plummeting, nonprofits face growing challenges. Discover key strategies nonprofits can use to adapt and thrive in a landscape of declining donor support.
Nonprofits are facing unprecedented financial pressures. With donations declining sharply and government grants becoming less reliable, many organizations are struggling to sustain their operations. The numbers paint a bleak picture:
Two thirds of donations come from individuals, but the number of donors dropped by 20 million between 2000 and 2016.
The 2018 tax law made it less attractive for individuals to donate, further shrinking donor pools.
Total giving by corporations, foundations, and individuals fell by 10.5% in 2022, with the drop in individual donations reaching a shocking 13.7% in 2022.
“Train your leaders, the board, and your program staff in fundraising work. Their knowledge, connections, and leadership are vital to the success of your development program. “
Development staff burnout is rampant, with the average tenure for a director of development lasting just 18 months. Not surprising, when giving is in sharp decline, yet your annual fundraising targets are often based on improving on your best year ever. Aside from the human impact, constant staff churn undermines your most valuable asset: donor relationships.
But despite these challenges, nonprofits (and funders) can take proactive steps to stabilize their funding. Let’s explore how.
Strategies Nonprofits Can Use to Sustain Themselves
While external funding is crucial, nonprofits themselves can take action to better position themselves in the current landscape. Here are practical strategies to consider:
Communicate Transparently with Funders
As a grantmaker I am, quite literally, invested in the success of my grantees. So, it’s vital to treat your funders as a partner and keep them in the loop. Share your organization’s challenges, strategic goals, and financial needs openly. Funders are more likely to continue supporting organizations that are transparent about their struggles and proactive about solutions.
Invest in Your Development Team
While it may seem counterintuitive during a funding downturn, investing in your development efforts is vital. Ensure your team has the resources and support needed to engage donors and partners effectively. Set manageable goals to avoid burnout.
Consider reallocating internal budgets to prioritize fundraising initiatives. Sometimes, a small increase in fundraising investment can yield significant returns.
Also remember to be realistic with your development team. One reason for high burnout and turnover among development staff is unrealistic expectations. When giving is in decline, expecting next year’s fundraising floor to be your best year’s fundraising ceiling is going to create exhaustion, resignations, and starting from scratch again.
Train all your leadership in fundraising
As an executive director, I quickly realized that fundraising was my top priority. However, too many nonprofits think fundraising is just for the development staff. Train your leaders, the board, and your program staff in fundraising work. Their knowledge, connections, and leadership are vital to the success of your development program.
Provide Supporters with More Ways to Give
Offer multiple giving options to attract a diverse group of donors. Consider adding monthly donation programs, planned giving options, and targeting Donor Advised Funds. But don’t limit your options just to money: help your supporters contribute as volunteers, community ambassadors, and online boosters. You can cultivate more loyal, long-term donors by making it easy for supporters to contribute.
Diversify Funding Sources
Relying on a single funding source is risky, especially in uncertain times. To mitigate this risk, explore various income streams like grants, corporate sponsorships, peer-to-peer fundraising, and crowdfunding initiatives.
The Time to Adapt Is Now
The key takeaway here is that nonprofits can no longer rely solely on old fundraising strategies. The landscape is changing, and organizations that innovate and diversify will thrive. Nonprofits can create a more sustainable future by communicating openly with funders, investing in development, and offering supporters more ways to give.



