Research and recommendations for effective, day-to-day nonprofit practice from ASU faculty, staff, students, and the nonprofit and philanthropic community.
In a time marked by economic uncertainty and shifting philanthropic landscapes, many nonprofits are grappling with a sobering reality: donor contributions are declining. According to the Center for Effective Philanthropy, over 80% of nonprofits report experiencing financial stress, with many noting a decrease in individual giving and rising competition for limited funds. Financial instability can hinder a nonprofit's ability to deliver consistent services, invest in staff, and plan for the future, ultimately threatening its long-term impact.
However, all is not lost. While the financial challenges are real, they are not insurmountable. Nonprofits can build resilience and sustainability by embracing a multi-pronged approach: diversifying revenue streams, managing costs strategically, strengthening donor engagement, and cultivating impactful partnerships.
Understanding why contributions are declining
To navigate today’s challenges, nonprofits must first understand the factors driving declining contributions. Economic downturns and inflation have decreased donors’ disposable income, while “donor fatigue”—especially following crisis-driven fundraising efforts during the COVID-19 pandemic—has reduced giving frequency. Additionally, generational shifts in philanthropy are reshaping the donor landscape. According to the Giving USA 2024 Report, younger donors are more likely to give to causes that demonstrate…
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Political shifts significantly impact nonprofits, altering funding streams, regulations, donor behavior, and advocacy opportunities. Leadership changes ripple across the sector, making resilience essential. Public funding, tax incentives, and compliance demands fluctuate with each administration, while advocacy groups either gain influence or face new challenges based on policy priorities. Advocacy groups may either gain power or face new obstacles based on what policies are prioritized. How a nonprofit is set up and the nature of its mission can affect the impact felt from these changes.
Nonprofits are urged to be flexible and use data to guide their strategies. A nonprofit’s mission and funding structure largely determine its vulnerability to these shifts. Finding diverse funding sources, keeping an eye on policy updates, and building partnerships can help organizations adapt. The way the media presents issues can greatly influence public perception, therefore clear communication and managing misinformation are crucial in today’s divided climate.
Working together across different sectors, getting the community involved, and developing strong leadership can build resilience. Advocacy should not just be about lobbying; it is also essential to focus on coalition-building and educating the public. During tough financial climates, nonprofits can benefit from collaborating with legal groups, innovating, and being patient in…
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When a small to mid-size nonprofit considers integrating digital technology into its organization, it can be intimidating. Before deciding that technology is challenging to incorporate, consider how it can increase volunteer engagement and an organization's overall dynamic and workflow. Technology can bridge the gap between volunteers and nonprofit staff by improving communication and contributing to an improved work culture. It can also lessen the workload of volunteer managers, help with scheduling and communication, and create a culture of communication within an organization. Communication platforms can assist with volunteer recognition when volunteer managers lack the bandwidth to complete day-to-day operations.
A nonprofit can take a few simple steps that can make a significant impact, engaging volunteers and leading to an overall better volunteer experience. Digital technology can lead to the retention of volunteers in the long term and can lead to prospective employees and stewardship. Many people who volunteer often donate to the organizations they serve.
Engaging with volunteers through social media
Social media can be a valuable tool for posting videos and content that engages volunteers. It can be something exciting at your organization or even discussing a need for volunteers. It can also be a great way to elevate the culture of a nonprofit by creating posts that showcase exceptional…
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The fundamental shift in philanthropy is generational. Millennials, who now represent the largest adult demographic, have taken control of charitable giving with new priorities around transparency, social justice, digital engagement, and impact. Nonprofit organizations adapting to such evolving standards lacks flexibility—these changes are critical for growth, sustainability, and long-term relevance.
Millennial donors frame relationships that require a complete reimagining of conventional fundraising tactics, which I learned through my Capstone Solutions Project and through the incredible discussions with nonprofit leaders like Jalisa McLamore from Deliver the Dream. In her work with evolving philanthropists, it became clear that successful change requires shedding outdated styles based on blind institutional loyalty and mass fundraising appeals. As opposed to the enduring nonprofits, evolving nonprofits clearly pursue distinct strategies that emphasize authenticity, relationship-based fundraising, and innovation in technology. Philanthropic policies are evolving and no longer just require nonprofits to issue a report once a year. These organizations now have to provide ongoing impact reporting throughout the year that demonstrates measurable outcomes. Trust, once earned, becomes the cornerstone needed to retain support from millennials, who generously donate to nonprofits with deeply cared missions. Thus far…
Nonprofits can be affected by and are subject to public policy. Administrative shifts can affect the general operations and program management of an organization more than is comfortable to admit. However, nonprofits can also make and influence public policy. In fact, they are at a particular advantage to do so, nonprofits provide the government a cheaper way to provide services. The ability for nonprofits to leverage outside funding makes them an ideal “contractor” for things like human service delivery. Nonprofits maximize the impact of government spending through their ability to secure additional funding.
Due to their advantage as lower-cost service providers as well as their ability to be affected by public policy shifts, it is clear how it may be advantageous for nonprofits to seek to influence public policy so as to not play defense when that policy is enacted.
It is important for nonprofit organizations to engage in public policy as they have firsthand knowledge of their communities' needs and circumstances. Many times, nonprofit organizations work with those eligible and ineligible for assistance programs and can speak to the needs of both of those communities.
It is important to guide advocacy efforts through a “best-practice” lens that can be adapted to the needs and capacities of any organization. Advocacy is a difficult thing to measure, as there are a lot of moving parts…
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