How Nonprofits Can Prepare for Donor Pullback During Economic Uncertainty

In the spring of 2020, my phone — and likely yours — went silent. The silence was deafening as we went from a busy office to no phone calls. Across the sector, organizations were forced to halt programs, cancel events, and rethink how they could continue serving their communities.

I remember, as the pandemic wound its way around the planet, that I had a choice. I could panic, or I could pivot — and quickly. My team and I focused on staying connected with our partners, checking in, listening closely, and exploring new ways to adapt to rapidly changing conditions.

We're in another of those chaotic, unpredictable moments right now — and it impacts every organization. Significant surges in the cost of fuel and gas raise prices across all goods, including food. It gets harder for nonprofit leaders to deliver the critical services their communities need due to higher costs. It also means your donors start to make hard choices about whether they can support your organization or must redirect their funds to family needs. 

Call Your Donors to Talk — Not to Ask

What my team and I discovered during 2020 is that people care about you caring about them. The relationships you tend before a crisis are the ones that will help you endure during a time of even greater stress and uncertainty, such as now. Simply calling people to say “I've been thinking about you” is worth the time every fundraiser spends each week with different donors. 

Candidly, a phone call is worth more than an email sequence or a drip campaign you can create. Look hard at your CRM and the people giving to your monthly giving program. Your sustaining donors can account for nearly one-third of your revenue, and by simply calling to check in on people to see how they're doing — just to talk — you can ensure that you can move them up the giving ladder. 

In other words, strong donor retention strategies today can reduce the need for reactive fundraising later.

Stop Waiting for Your Revenue to Diversify Itself

Too many nonprofits go under because they focus on money from only one source, don't diversify, and when that funder doesn't support the organization or the revenue stream dries up, they don't have a backup. It's a rookie mistake that, unfortunately, many organizations make because they think the single income stream will continue. 

Here are the four moves every organization should make right now.

1. Donor-Advised Funds

Donor-advised funds continue to grow because people prefer to receive an immediate tax deduction and build their funds. Despite uncertainty, DAF assets reached a record $326.45 billion in 2024, up 27.5%. Contributions into DAFs surged 37.3% to $89.64 billion. Find out which of your donors have donor-advised funds. 

2. Planned Giving

This is the moment to sit down with your top major donors and supporters to discuss legacy giving. It's not a money request, per se, but an ask about what matters to them. Promoting a planned gifts program monthly to donors will yield results and potentially even transformative gifts that can change the course of your organization down the line.

3. Earned Income 

Earned income is an untapped opportunity for many nonprofits. What would your community pay for from your expertise in goods or services? Earned income has to align with your mission, but the organization can consult on your expertise, provide training, rent your facilities, or license your intellectual property. Earned income can help protect your mission. 

4. In-Kind

Find corporate partners and sponsors to provide you with in-kind gifts. You would be surprised by the number of companies that would say yes to donating services when they've not donated or even declined making a financial contribution. Also, ensure that your organization has in-kind pro bono services from experts in law, marketing, and even fundraising. 

Become the Organization That Doesn’t Flinch

In uncertain times, when everyone is evaluating options, it's an opportunity for those who remain steadfast and stable. Your volunteers and donors want to know that no matter what happens, your doors are staying open. In other words, they want to know that even if their families and the world seem chaotic, you're steady and you'll still be there for them and the community. That makes it easier for people to keep giving. 

So, how can you show that you’re the organization that — no matter what happens — they shouldn’t cut? It’s said often, but be transparent about your financial position. Show your board and your supporters where you stand, and make it a point to get a nonprofit profile on trusted platforms. 

Beyond finances, publish your impact numbers and be specific about them. This transparency will bode well for your fundraising team and their efforts. 

Lead Through Uncertainty — Don’t React to It

In 2020, the organizations that made it through that crisis were those that focused on being community leaders. In some cases, they weren't the biggest organizations, but small grassroots nonprofits where leaders made clear, steady decisions during a time of immense unease and uncertainty. They moved forward, innovated, and pivoted — and didn't freeze despite the challenge. 

The world may be on fire  — but how your organization prepares for it will determine whether you stabilize or struggle. Your community is watching how you respond. 

The preceding content was provided by a contributor unaffiliated with NonProfit PRO. The views expressed within may not directly reflect the thoughts or opinions of the staff of NonProfit PRO.