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How To Adjust Your 2025 Funding Plan To Your Current Reality

  • marisa4131
  • Jun 22
  • 2 min read

Updated: Jun 30

by Scott Sadler, Partner and Senior Strategist


Nonprofits are facing a perfect storm in 2025: federal funding cuts, economic uncertainty, and shifting donor behavior. But instead of folding, many are adapting with creativity and grit.

Here’s how they’re adjusting:

  • Diversifying revenue streams: With federal grants drying up, nonprofits are leaning more on individual donors, corporate partnerships, and local government support. Some are even exploring social enterprise models to generate income.

  • Mergers and collaborations: Organizations have merged with larger nonprofits to pool resources and sustain services. This trend is growing as groups prioritize mission over brand.

  • Emphasizing transparency and storytelling: Nonprofits are being more open about financial challenges and using compelling narratives to connect with donors. Highlighting volunteer stories and community impact helps cut through the noise.

  • Boosting volunteer engagement: While donations may be down, volunteerism is up in some areas. Organizations are tapping into this goodwill to maintain services and deepen community ties.

  • Scenario planning and contingency strategies: Many are preparing for worst-case funding scenarios by building flexible budgets and identifying essential vs. non-essential programs and response plans for each scenario. See attached Ostara resource.

  • Advocacy and policy engagement: Groups like the Oklahoma Center for Nonprofits are actively lobbying against proposed federal cuts and encouraging public support for vital services.

  • Implement a “Mini, Urgent Campaign”: Take a campaign style approach to your current scenario. Build a case for support based on current reality, establish a goal and timeline, identify donor prospects, mobilize staff, volunteers, and counsel, and raise money to offset anticipated negative outcomes your organization faces at this juncture.

    This picture has a tan background and features two arms and hands holding a pink piggybank upside down. There are coins coming out of the piggybank.

Despite the headwinds, some leaders see this as a moment for reinvention. As one nonprofit CEO put it, “It’s not an ego thing… it’s about keeping the mission going and supporting the community”. In summary:

  • Taking forward moving action will help everyone in your organization focus on what they can control.

  • If your organization has relevant impact and a relationship with your donors, they will respond. Impact drives income.

  • Double down on fundraising efforts by focusing on your impact and communicating with your donors.


If you don't know where to start, contact Ostara or download the Financial Planning Scenario tool at the bottom of this article to forecast your year, make adjustments to budget, and determine best outcomes.


Learn more by visiting the sources below:

 


 
 
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