Research and recommendations for effective, day-to-day nonprofit practice from ASU faculty, staff, students, and the nonprofit and philanthropic community.
In a changing philanthropic landscape where trust is paramount, nonprofit organizations must adapt to ensure their mission resonates with their communities. Trust-based philanthropy offers a transformative approach that enhances donor relationships and fosters deeper connections with community stakeholders. It emphasizes open communication, unrestricted funding, collaboration, and alignment with the fundamental principles necessary for nonprofits to thrive in their mission.
Understanding trust-based philanthropy
Trust-based philanthropy aims to rebalance power dynamics between donors and nonprofits, shifting from a transactional model to one centered around mutual trust and respect. Trust enhances nonprofit adaptability, allowing organizations to respond strategically to real-time community needs. Establishing trust within the relationship enables nonprofits to receive greater financial support, ultimately enhancing their initiatives and operational efficiency.
The importance of community trust cannot be overstated. Building a positive reputation can increase funding opportunities, enhance volunteer engagement, and improve program delivery. Trust directly contributes to a nonprofit organization’s ability to navigate challenges and maintain support during difficult periods when community backing is critical.
Building community trust through transparency
Trust in philanthropy hinges on…
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Donors are essential to the existence of nonprofits. They’re the reason we can run programs, keep the lights on, and make real things happen in the communities we serve. However, keeping donors around year after year proves to be challenging for the nonprofit sector.
According to the Fundraising Effectiveness Project, the overall donor retention rate in 2024 was just 42.9%, marking five straight years of decline. Essentially, for every two donors who gave to an organization last year, only one came back. This leaves nonprofit leaders and fundraisers stuck chasing new folks to replace the ones who already believed in what you’re doing, but didn’t stick around. Constantly finding new donors can be exhausting. It takes time, energy, and money that could be spent deepening existing relationships. Instead of starting from scratch every year, what if we shifted our focus to the people who are already in our corner?
Here are a few strategies for nonprofit leaders and fundraisers to consider to keep donors coming back - not just once, but for years to come.
The first step
One of the quickest and easiest ways to have a positive impact on donors is with a simple thank you. Thanking donors should go beyond an automatically-generated tax receipt or bot email. Donors should be receiving a real thank-you that is timely, personal, and specific. The goal is to make donors feel appreciated, and that their gift mattered.…
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Nonprofit organizations play a unique role in society–they don’t just serve causes, they shape and stand for social values. Yet in times of pressure, change, or crisis, even the most deeply held values can quietly drift. Leadership approaches and governance structures can reinforce and strengthen organizational values, making them more resilient to challenges. Understanding how leadership behaviors and governance choices support the sustainability of those values is essential in navigating today’s complex environment.
What leadership approaches help deliver enduring nonprofit values?
Meaning-making
During times of uncertainty, nonprofit staff, board members, and community members often turn to leaders for guidance and interpretation. Leaders who practice meaning-making help stakeholders understand not only what is happening but also why it is happening. This leadership approach serves to minimize anxiety and create clarity during challenging times.
Shared governance
Traditional hierarchical governance structures persist in many nonprofit organizations; however, shared governance models are a valuable alternative. When leadership and decision-making responsibilities are spread across staff, boards, and community members, values become embedded into everyday operations and practices. These inclusive…
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That we need to remind ourselves to involve the communities we hope to empower in our nonprofit work is telling. Who better to lead the way? Someone who has worked in nonprofit boardrooms for years, arguably doing much good and understanding the nuances of bureaucracy that can make or break mission-driven initiatives? Or someone on the front lines of the community, holding embedded history and the intergenerational relationships unlearnable to an outsider?
Truthfully, both are needed.
This shift toward embracing community strengths rather than focusing on deficits as a noble outsider is known as Asset-Based Community Development (ABCD). ABCD is about recognizing the talents, relationships, and resources already present within communities and building collaboratively to leverage them.
In my current work, I’m honored to support formerly incarcerated individuals on a pathway to sustainable employment. I’ve worked in nonprofits for nearly 20 years, but I have zero personal experience being incarcerated.
So when it comes time to create programming and write funding proposals, our greatest assets are the nearly half of my teammates who have lived experience with incarceration. Those who have left prison with nothing more than a prison ID, somewhere south of $100, and are expected to thrive in a society they may barely recognize.
My colleagues with lived experience are the ones who create the real connections…
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While the most common and well-known method of income for nonprofits is from donations, there is also a percentage of nonprofits that receive some or even most of their income from federal grants. The types of nonprofits most likely receiving federal funding are organizations in healthcare, education, research or environmental services. These organizations provide important work for the government for continuation of societal programs that otherwise would not be offered to the full extent that they are.
Current events
In late January of 2025 the White House Administration put out a memo of an executive order calling for a pause on all federal funding. This was a major concern for nonprofits who rely heavily on federal funding, with many having to cut programs and lay off staff. As of most recently the federal funding cuts are being aimed at higher education institutions. Funding for these institutions goes towards a variety of programs including student aid, faculty salary, overhead costs and research projects making advancements in science and medicine.
An example of this currently happening is at Harvard University. Harvard is being denied $2.3 billion in federal funding, which will greatly affect their ability to continue educational programs and conduct critical scientific research.
What to do next
Review grant language:
If organizations feel…