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Nonprofit fundraising is changing. Not because donors have suddenly become cold-hearted people who no longer care about the world. They care. A lot.

But they are tired.

They are overwhelmed.

They are being asked for money by everyone, everywhere, all the time. Their inboxes are full. Their grocery bills are rude. The world feels unstable. And somewhere in the middle of all that, your nonprofit is hoping they will open your email, understand your mission, feel inspired, click the button, and give.

That is not impossible.

But it does mean your fundraising has to work harder.

Recent 2026 fundraising reports from Bloomerang, the Fundraising Effectiveness Project, Blackbaud Institute, and Virtuous are all pointing in the same direction: donors are still giving, but they are becoming more selective. They want to trust the organizations they support. They want to understand the impact of their gifts. They want giving to be easy. And they want to feel like they are part of something meaningful, not just another name in your donor database with a gift amount next to it.

In other words, donors are not asking for the moon.

They are asking for clarity.

Trust.

Follow-through.

A decent thank-you.

Apparently, we have decided to make that complicated.

Free Resource: The Donor Trust Checklist

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Donors are becoming more selective. Use this quick checklist to review your donation page, thank-you process, impact communication, donor follow-up, and monthly giving strategy.

Download it HERE

Donors Are Becoming More Selective

One of the biggest fundraising signals right now is that donors are not necessarily giving less because they care less. Many are making more deliberate decisions about where their charitable dollars go.

That means your nonprofit is not just competing for money. You are competing for trust.

And trust is not built during a year-end appeal when you suddenly show up in someone’s inbox like, “Hi, remember us? We need $25,000 by midnight.”

That is not a relationship. That is a jump scare.

Trust is built in the months before the ask. It is built when you communicate clearly, thank donors well, share what their gifts made possible, and help people feel connected to your mission. It is built when your emails sound like they came from a real person who understands the work, not from a fundraising robot wearing a fleece vest.

Donor communication cannot only happen when you need money. If the only time donors hear from your organization is when you are asking for a gift, they will start to feel less like partners and more like an ATM with an email address.

And friends, that ATM has limits.

Donors Want to See Impact

Donors do not want to fund a mystery. They want to know what their gift made possible.

This does not mean you need to create a 38-page impact report full of charts, acronyms, and photos of people holding oversized checks. Please, let us not hurt ourselves.

It means you need to answer one basic question:

What changed because someone gave?

There is a huge difference between saying, “We served 300 people,” and saying, “Because donors gave, 300 families received groceries during a month when food costs were stretching them past the breaking point.”

One is a statistic. The other has a heartbeat.

The same is true for almost every type of nonprofit work. “We provided youth programming” is fine, but it does not exactly make anyone reach for their wallet. “Because donors gave, 42 students had a safe place to go after school, caring adults who knew their names, help with homework, and a meal before going home” is stronger because it helps the donor see the life behind the line item.

Donors need both the number and the story. The number gives credibility. The story gives meaning.

Do not make donors guess why their gift matters. They are busy. They have 12 tabs open and one of them is probably playing sound for no reason.

Vague Fundraising Messages Are Not Enough

If your fundraising message could apply to almost any nonprofit, it is probably too vague.

“Help us continue our mission” is true, but weak.

“Support our programs” is true, but sleepy.

“Make a difference today” is fine, but it needs a little protein.

A stronger fundraising message tells the donor what the need is, why it matters now, what their gift will do, and what happens when they give.

For example, “Your $50 gift provides one week of transportation for a senior who needs to get to medical appointments” is far stronger than “Donate to support seniors.”

The first one gives the donor a clear picture of what their generosity can do. The second one politely waves from across the room and hopes someone understands.

Hope is not a fundraising strategy.

Specificity helps donors say yes. Vague language makes them work too hard. And busy people do not usually donate when they have to solve the ask like it is a nonprofit escape room.

Tell them what is needed. Tell them why it matters. Tell them how they can help.

Donor Fatigue Is Really Relationship Fatigue

Nonprofits love to talk about donor fatigue. And yes, donors are tired.

But let’s be honest. Sometimes what we call donor fatigue is really relationship fatigue.

It is not only that donors are tired of being asked. It is that they are tired of being asked by organizations that have not meaningfully communicated with them since the last ask.

If a donor gives in January, hears nothing but crickets for eight months, and then receives a year-end appeal in November, that is not stewardship. That is popping back up like a fundraising ex.

“Hey stranger. Thinking of you. Also, can you give again?”

No.

A healthy donor relationship includes gratitude, updates, stories, invitations, behind-the-scenes moments, wins, challenges, and yes, asks. But the asks should be part of a larger relationship. They should not be the entire relationship.

This matters because donor retention continues to be one of the biggest challenges in fundraising. If you want donors to give again, you need to give them a reason to stay connected. That reason cannot be “because we sent another email with a donation button.”

The first gift is not the finish line. It is the beginning.

The First 60 Days After a Gift Matter

The period right after someone gives is one of the most important moments in fundraising. The donor has just raised their hand and said, “I care about this.”

What happens next?

In too many organizations, the answer is: a receipt, maybe a generic thank-you, and then silence until the next campaign.

That is a missed opportunity wearing a nametag.

A receipt is not a relationship. A generic thank-you is not a stewardship plan. Donors should receive a warm and timely thank-you, followed by communication that shows their gift mattered.

This does not have to be complicated. A simple donor welcome sequence could include a personal thank-you within 48 hours, a short impact story within 30 days, an invitation to learn more or engage further, and a future ask that connects back to the donor’s original interest.

This is not fancy fundraising. This is basic human behavior.

When someone helps you, you thank them. Then you show them that their help made a difference.

Groundbreaking, I know.

Flexible Giving Options Are No Longer Optional

Donors give in different ways, and nonprofits need to stop making generosity harder than it needs to be.

Some donors want to make a one-time gift. Some prefer monthly giving. Some may give through a donor-advised fund. Others may want to use a credit card, PayPal, Venmo, Apple Pay, or a check because they are living their truth and still own stamps.

The point is simple: generosity should not require detective skills.

If your donation page is confusing, slow, clunky, or not mobile-friendly, you are probably losing gifts. If monthly giving is buried somewhere on your website like a secret tunnel, you are probably losing recurring donors. If donors cannot quickly understand their options, some of them will move on.

This does not mean every small nonprofit needs every possible giving tool by Friday at 3:00 p.m. Please do not panic and schedule a six-person meeting about Venmo.

But it does mean you should review your donation process with fresh eyes. Ask someone outside your organization to make a small test gift and tell you where they got confused.

And when they tell you, believe them.

Do not explain why the confusing thing makes sense internally. Donors do not care about your internal logic. They care about whether the button works.

Events Should Lead Somewhere

Nonprofits work very hard on events. The room is full. The centerpieces are cute. The program mostly stays on schedule. The board members show up and, with luck, do not all sit together at the same table talking only to each other.

Beautiful.

But what happens after the event?

Too many nonprofits treat events like the finish line. They are not. Events should be the beginning of a stronger donor relationship.

After an event, your nonprofit should have a follow-up plan. Attendees should be thanked. They should hear what the event made possible. They should be invited to take a next step. That next step could be a monthly gift, a tour, a volunteer opportunity, a conversation with the executive director, or a smaller donor briefing.

If the only follow-up after your event is “Thank you for attending, here are some photos,” you are leaving money and relationships on the table.

And that table probably had rented linens, so let’s not waste it.

Technology Can Help, But It Cannot Replace Relationships

Fundraising technology can be incredibly helpful. A good donor database can help you track giving history, communication preferences, event attendance, and follow-up. Email automation can help you send better welcome sequences. Online giving tools can make donating easier. AI can help draft, organize, segment, and summarize.

Use the tools.

Seriously. Use them.

But do not confuse automation with connection.

Donors still want to feel seen. They want communication that sounds like it came from someone who understands the mission and appreciates their support. Technology should help you become more personal, not more robotic.

If your donor communication sounds like it was written by a vending machine with a nonprofit degree, it is time to revise.

And while we are here, please clean up your donor database. I know. I said it. Someone had to.

What This Means for Nonprofits in 2026

The nonprofits that will raise more money in 2026 are not necessarily the ones sending the most emails, hosting the fanciest events, or using the trendiest technology. They are the organizations building trust, showing impact, making giving easy, thanking donors well, and treating fundraising as a relationship instead of a transaction.

That work takes intention, but it does not have to be overwhelming.

Start by reviewing your donation page. Look at your last few fundraising emails and ask whether they are specific enough. Check your thank-you process. Create a simple 30-day follow-up for new donors. Strengthen your monthly giving option. Send more communication that is not an ask. Follow up after events with a clear next step.

None of this requires a massive development department. It requires consistency, clarity, and a willingness to stop doing the weird nonprofit thing where we make everything more complicated than it needs to be.

Donors want to help.

Our job is to make it clear why their help matters.

Final Thought

Donors do not owe your nonprofit their loyalty. You earn it.

You earn it through trust, clarity, gratitude, and follow-through. You earn it by showing people that their gift mattered. You earn it by making them feel connected to the work, not just contacted when the organization needs money.

That is what donors want in 2026.

And honestly, it is what they have always wanted.

We just need to stop pretending donor relationships are built by sending three appeals, one receipt, and a newsletter nobody asked for.

Frequently Asked Questions About Donor Giving in 2026

What do donors want from nonprofits in 2026?

Donors want trust, clarity, impact, and ease. They want to know their gift matters, where their money is going, and whether the nonprofit is actually following through. They are not looking for perfect organizations. They are looking for honest, clear, well-run organizations that communicate like real humans.

Why is donor retention so important for nonprofits?

Donor retention matters because it is usually easier and less expensive to keep a donor than to constantly find new ones. When donors give once and disappear, nonprofits end up on the fundraising treadmill, always chasing the next new gift. A strong retention strategy helps turn first-time donors into repeat donors, monthly donors, major donors, volunteers, and advocates.

How can nonprofits improve donor retention?

Nonprofits can improve donor retention by thanking donors quickly, showing them what their gift made possible, communicating regularly between asks, and making donors feel like partners in the mission. A receipt is not a retention strategy. Neither is one newsletter every six months that starts with “We’ve been busy.”

What makes a fundraising message effective?

An effective fundraising message clearly explains the need, why it matters now, what the donor’s gift will do, and how the donor can help. Vague messages like “support our mission” are not enough. Donors need specifics. The more clearly they can picture the impact of their gift, the easier it is for them to say yes.

Why are monthly donors important for nonprofits?

Monthly donors create more predictable revenue and often become some of an organization’s most loyal supporters. They also give nonprofits breathing room. Instead of starting from zero every month, a strong monthly giving program gives the organization a base of ongoing support. Translation: fewer panic emails. Everyone wins.

Do nonprofits need fancy technology to raise more money?

No. Technology helps, but it does not replace relationships. A good donor database, email system, and online giving platform can make fundraising easier and more organized. But donors still want to feel appreciated, informed, and connected. The fanciest software in the world cannot fix boring communication or bad follow-up.

What should nonprofits do after a fundraising event?

After a fundraising event, nonprofits should thank attendees, share what the event accomplished, and invite people to take a next step. That next step could be making a gift, becoming a monthly donor, taking a tour, volunteering, or meeting with staff. The event is not the finish line. It is the opening act.

What is the biggest fundraising mistake nonprofits make?

One of the biggest mistakes nonprofits make is treating donors like transactions instead of relationships. If you only contact donors when you need money, do not be shocked when they stop paying attention. Donors want to feel like part of the mission, not like someone you remembered five minutes before the campaign deadline.

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Let’s be honest for a second.

You did not start your nonprofit so you could spend every third Tuesday night sitting across from twelve people who do not know what they signed up for, debating whether to spend $79 on a new coffee maker for the break room.

And yet.

Here you are.

If your nonprofit board meetings feel more like hostage negotiations than strategic leadership sessions, you are not alone. Nonprofit board problems are everywhere.

Disengaged board members.
Confusion about roles.
Fear of fundraising.
Meetings that go nowhere.
Committees that exist in name only.
Board members who nod a lot but do very little.

It is exhausting.

But here is the good news: most dysfunctional nonprofit board issues are fixable.

The bad news? Fixing them requires someone to say out loud what is actually going wrong.

Consider this your permission slip.

FREE RESOURCES BELOW, BY THE WAY...

What Makes a Nonprofit Board Dysfunctional?

A dysfunctional nonprofit board is not always loud, dramatic, or openly hostile.

Sometimes it looks very polite.

Everyone smiles. Everyone approves the minutes. Everyone says they care deeply about the mission. Then nothing changes.

A nonprofit board becomes dysfunctional when board members are unclear about their responsibilities, avoid difficult conversations, fail to participate in fundraising, focus on operations instead of governance, or do not hold one another accountable.

In other words, the problem is not always bad people.

Sometimes the problem is a bad system.

Most board dysfunction comes from a few common issues:

• Board members were recruited without clear expectations.
• New members were never properly onboarded.
• The board does not understand governance.
• Fundraising expectations were never clearly explained.
• Meetings are focused on updates instead of strategy.
• There is no accountability for attendance or participation.
• The same people stay on the board too long.
• The executive director is carrying work the board should own.

If any of that sounds familiar, take a breath.

You are not alone. You are also not powerless.

Let’s fix the mess.

Problem #1: Board Members Do Not Understand Their Role

Somewhere along the way, someone told your board members their job was to attend meetings, nod thoughtfully, and approve the budget.

That person was wrong.

Nonprofit board members are fiduciaries. They are legally and ethically responsible for helping protect the organization’s mission, finances, reputation, and long-term health.

A strong nonprofit board helps with:

• Governance
• Financial oversight
• Strategic direction
• Executive director support
• Fundraising
• Community ambassadorship
• Risk management
• Mission accountability

That does not mean board members should manage staff, pick napkin colors for the gala, rewrite the newsletter, or hover over the executive director like a nervous drone.

That is not governance.

That is meddling with a name badge.

The board’s job is to lead at the right level. They should be focused on strategy, sustainability, oversight, and mission impact.

If your board members do not understand that, it usually means they were never properly taught.

That is not entirely their fault.

It is a recruitment, onboarding, and expectations problem.

How to Fix It

Start with a simple board expectations document.

Not a 14-page packet that disappears into a Google Drive folder and is never seen again.

A clear, direct, one-page document.

Include expectations around:

• Meeting attendance
• Committee participation
• Personal giving
• Fundraising support
• Community ambassadorship
• Confidentiality
• Preparation before meetings
• Strategic leadership
• Term limits
• Conflict of interest policies

Then review it with every current board member.

Not just new board members.

Everyone.

Have each board member sign it annually. Yes, even the longtime board member who has “been here since the beginning.” Especially that person, if we are being honest.

Some people will step up. Others may realize this is no longer the right role for them.

That is not a failure.

That is clarity.

And clarity is your friend.

Free Resource Help Solve This Problem:

‍Your board members cannot meet expectations that live only in your head. I'm sharing a free Board Member Expectations Template to clearly spell out what board members are responsible for, what support the organization will provide, and how everyone can start the year on the same page.

Download the FREE Board Member Expectations Template HERE

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Problem #2: The Board Avoids Fundraising

This one is so common it should have its own support group.

Your board members say things like:

“I am not comfortable asking for money.”
“That is not my strength.”
“I do not know wealthy people.”
“I thought staff handled fundraising.”
“I did not join the board to ask my friends for money.”

Meanwhile, your organization is running on fumes and you are writing grant applications at midnight like some kind of nonprofit vampire.

Let’s be clear.

Board members do not need to be professional fundraisers to help with fundraising.

They do not need to cold-call strangers.
They do not need to beg.
They do not need to become slick salespeople.
They do not need to corner people at cocktail parties and ruin the cheese board.

But they do need to participate.

Board fundraising can include:

• Making introductions
• Thanking donors
• Sharing why the mission matters
• Inviting people to events
• Hosting small gatherings
• Identifying potential sponsors
• Calling lapsed donors
• Sharing campaigns on social media
• Making a personally meaningful gift
• Opening doors to businesses, civic leaders, or funders

Board fundraising is not just asking for money.

It is helping build relationships that lead to money.

That distinction matters.

How to Fix It

Stop telling your board, “We need you to help with fundraising.”

That is too vague.

Vague asks create vague results.

Instead, give board members specific, manageable actions.

Try this:

“Can you introduce me to three people who care about youth homelessness?”

“Can you make five thank-you calls this month?”

“Can you invite two people to our next site tour?”

“Can you share our campaign with a short note about why you serve on the board?”

“Can you help us identify five businesses that may want to sponsor the event?”

Now you are giving them something concrete.

Also, give them scripts.

Board members are often afraid because they do not know what to say. Do not make them invent language from scratch. That is how people panic and start saying weird things like, “Please donate because we are very nice.”

Give them talking points, sample emails, call scripts, and social media captions.

Make fundraising feel doable.

Because it is.

Want a deeper step-by-step guide? My book, How To Get Your Nonprofit Board To Fundraise, walks you through how to set expectations, train your board, and give members practical ways to support fundraising without making everyone feel awkward, guilty, or ready to fake a Wi-Fi outage. Get it on Amazon HERE.

Problem #3: Your Board Is Full of the Wrong People

Not everyone on your board should be on your board.

There. I said it.

Some people joined because they were enthusiastic three years ago. Some joined because they are friends with a founder. Some joined because they are connected to a major donor. Some joined because nobody else said yes.

And at least one person may be there because nobody had the heart to say no.

That is how nonprofit boards become crowded but not effective.

A strong board is not built by accident. It is built intentionally.

You need people with the skills, connections, lived experience, perspective, and commitment your organization needs now.

Not ten years ago.

Now.

This is not about being unkind.

It is about being responsible.

Your mission is too important to staff your board out of obligation.

How to Fix It

Create a board matrix.

A board matrix helps you identify what your board has, what it is missing, and what you should recruit for next.

Look at areas such as:

• Finance
• Legal
• Fundraising
• Marketing
• Human resources
• Programs
• Technology
• Facilities
• Public relations
• Government relations
• Community connections
• Lived experience
• Strategic planning
• Major donor access
• Corporate partnerships

Then ask the question most boards skip:

What does our organization need from its board over the next three years?

Not “Who do we know?”
Not “Who will say yes?”
Not “Who looks impressive on paper?”
Not “Who has a pulse and owns a blazer?”

Start with the organization’s needs and work backward.

That is how you recruit board members who can actually help lead.

Problem #4: Board Meetings Are Too Operational

If your board spends 25 minutes discussing where to store extra folding chairs but barely talks about financial sustainability, you have a problem.

Board meetings should not be staff meetings with fancier snacks.

They should not be a monthly tour through everything staff already did.

They should not be dominated by updates that could have been sent in an email.

Board meetings should focus on governance, strategy, oversight, and decisions.

If your board meetings are boring, unfocused, or painfully long, your agenda may be training board members to disengage.

And guess what?

They are learning.

How to Fix It

Redesign your board agenda.

A strong nonprofit board meeting agenda should focus on:

• Strategic decisions
• Financial trends
• Program outcomes
• Fundraising progress
• Board recruitment
• Risks and opportunities
• Executive director support
• Strategic plan progress
• Mission impact
• Long-term sustainability

Send reports in advance. Use a consent agenda when appropriate. Stop reading reports out loud unless your board enjoys bedtime stories with budget notes.

Make sure every major agenda item answers one of these questions:

• What decision do we need from the board?
• What strategic issue needs discussion?
• What risk does the board need to understand?
• What opportunity should the board help advance?
• What does this mean for our mission?

Your board members are more likely to act like leaders when the agenda invites them to lead.

Problem #5: Nobody Holds Board Members Accountable

This is where many nonprofit boards get stuck.

Everyone knows who misses meetings.

Everyone knows who never follows through.

Everyone knows who avoids fundraising.

Everyone knows who dominates conversations but does not actually do anything.

And everyone pretends not to know.

That silence is expensive.

When board members are allowed to miss meetings, ignore commitments, avoid fundraising, and remain on the board indefinitely, the message is clear:

Expectations are optional.

That is how strong board members get frustrated. It is also how weak board culture becomes normal.

How to Fix It

Create a board accountability process before you are in crisis.

This can include:

• Annual board self-assessments
• Board chair check-ins
• Attendance tracking
• Committee participation reviews
• Term limits
• Clear expectations for giving and fundraising
• A process for rotating inactive members off the board

Accountability does not have to be cruel.

Sometimes the conversation is simply:

“We are so grateful for your service. It seems like this may no longer be the right season for you to serve in this role. Would you be open to supporting the organization in another way?”

See?

Nobody died.

Awkward? Maybe.

Necessary? Absolutely.

Problem #6: The Executive Director Is Carrying the Board

This one is delicate, but we need to talk about it.

In many nonprofits, the executive director is doing the board’s job for them.

The executive director reminds board members to attend meetings.
The executive director creates the board agenda.
The executive director recruits board members.
The executive director drives fundraising.
The executive director follows up on committee work.
The executive director writes the strategic plan, updates the dashboard, manages the crisis, and probably orders the sandwiches.

Then everyone wonders why the executive director is exhausted.

A healthy nonprofit board should support the executive director, not become another program the executive director has to manage.

How to Fix It

Strengthen the board chair role.

The board chair should be the executive director’s partner in board leadership. That means the board chair helps set expectations, manage board culture, follow up with board members, lead difficult conversations, and keep the board focused on governance.

If the executive director is the only person holding the board accountable, the structure is broken.

Create a clear partnership between the executive director and board chair.

They should meet regularly to discuss:

• Board engagement
• Meeting agendas
• Fundraising participation
• Board recruitment
• Committee progress
• Executive director support
• Upcoming decisions
• Any board member concerns

The executive director should not have to carry the board alone.

That is not leadership.

That is a slow-motion burnout plan.

Free Resource Help Solve This Problem:

If any of that sounds familiar, start here: the Board Chair and ED Partnership Checklist gives you the role clarity table, the reset script, and the 30-day plan.

Download the FREE Board Chair and ED Partnership Checklist HERE

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Problem #7: Board Recruitment Is Reactive, Not Strategic

Too many nonprofit boards recruit in panic mode.

Someone resigns. Everyone looks around the table. Someone says, “Does anyone know somebody?”

That is not a recruitment strategy.

That is a group project with snacks.

Reactive board recruitment leads to the same problem over and over again. You fill seats instead of building leadership.

You end up with people who are available, not necessarily people who are aligned.

How to Fix It

Create a year-round board recruitment process.

Strong boards are always cultivating future board members. They are not waiting until someone quits.

Build a simple pipeline:

1. Identify the skills and connections you need.
2. Ask current board members and staff for names.
3. Invite prospects to events or tours.
4. Have exploratory conversations.
5. Share board expectations early.
6. Ask candidates why the mission matters to them.
7. Review fit before making an invitation.
8. Onboard new members with intention.

And please, for the love of your mission, stop surprising people with board expectations after they join.

Tell them the truth up front.

Yes, we expect attendance.
Yes, we expect giving.
Yes, we expect fundraising participation.
Yes, we expect committee work.
Yes, we expect you to be an ambassador.

The right people will appreciate the clarity.

The wrong people will run.

Both are useful outcomes.

A Simple 30-Day Plan to Improve Your Nonprofit Board

You do not have to fix every nonprofit board problem overnight.

In fact, please do not try.

That is how you end up with a 47-page board improvement plan that everyone praises and no one implements.

Start with 30 days.

Week 1: Name the Real Problems

Meet with your board chair and executive director.

Ask:

• What is working well?
• What is not working?
• Where are board members confused?
• Where are we avoiding accountability?
• What are we expecting from the board that we have never clearly stated?
• What does the organization need from the board this year?

Be honest.

Not dramatic.

Honest.

Week 2: Create or Update Board Expectations

Draft a one-page board expectations document.

Include:

• Attendance expectations
• Giving expectations
• Fundraising participation
• Committee roles
• Ambassador responsibilities
• Preparation expectations
• Term limits
• Conflict of interest requirements

Then decide when and how you will review it with the full board.

Week 3: Redesign the Board Meeting Agenda

Look at your last three board agendas.

Ask:

• What could have been sent by email?
• What was operational instead of strategic?
• Where did the board actually make decisions?
• What important conversations are missing?
• Are we spending enough time on finances, fundraising, impact, and strategy?

Then create a better agenda for the next meeting.

Week 4: Assign Specific Fundraising Actions

Do not ask the board to “help with fundraising.”

Give them specific choices.

For example:

• Make thank-you calls.
• Invite people to a tour.
• Identify potential sponsors.
• Share a campaign.
• Make introductions.
• Attend donor meetings.
• Write personal notes.
• Help with follow-up after events.

Let board members choose from a menu of actions.

Then track follow-through.

That last part matters.

A plan without accountability is just a wish wearing business casual.

What a Healthy Nonprofit Board Looks Like

A healthy nonprofit board does not mean everyone agrees all the time.

It does not mean meetings are perfect.

It does not mean every board member is wealthy, connected, or naturally gifted at fundraising.

A healthy nonprofit board means:

• Board members understand their role.
• Expectations are clear.
• Meetings are strategic.
• Fundraising is shared.
• Board members follow through.
• The board chair leads.
• The executive director is supported.
• Recruitment is intentional.
• Accountability is normal.
• The mission stays at the center.

That is the goal.

Not perfection.

Progress.

Final Thought: Your Mission Deserves Better Than Board Chaos

If your nonprofit board is a hot mess right now, you are not doomed.

But you do have to stop pretending the mess will magically clean itself up.

It will not.

Board problems usually get worse when they are ignored.

The disengaged members get more disengaged.
The strong members get more frustrated.
The executive director gets more exhausted.
The mission pays the price.

So start small.

Name the problem.
Clarify the expectations.
Fix the agenda.
Train the board.
Recruit intentionally.
Have the hard conversations.

Your mission deserves a board that shows up for it.

Not just physically.

Fully.

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If you want a practical roadmap for transforming your board from a well-meaning collection of confused volunteers into an actual fundraising force, I wrote the book on it.

Literally.

How To Get Your Nonprofit Board To Fundraise is available on Amazon and walks you through how to recruit the right people, set clear expectations, build board confidence, and finally get your board doing the work they were always supposed to do.

Your mission deserves a board that understands the assignment.

Let’s get you there.

Frequently Asked Questions About Nonprofit Board Problems

What are the most common nonprofit board problems?

The most common nonprofit board problems include unclear roles, poor meeting attendance, weak fundraising participation, unproductive meetings, lack of accountability, poor recruitment, and board members who do not understand the difference between governance and management.

How do you fix a dysfunctional nonprofit board?

To fix a dysfunctional nonprofit board, start by identifying the specific problems. Then create clear board expectations, improve onboarding, redesign board meeting agendas, provide fundraising training, use a board matrix for recruitment, and create a process for board accountability.

What are the signs of a dysfunctional nonprofit board?

Signs of a dysfunctional nonprofit board include low attendance, poor follow-through, lack of fundraising participation, board members focusing on staff-level tasks, unclear roles, weak financial oversight, conflict avoidance, and meetings that do not lead to meaningful decisions.

What should nonprofit board members be responsible for?

Nonprofit board members are responsible for governance, financial oversight, strategic direction, executive director support, fundraising support, community ambassadorship, and protecting the mission of the organization. They are not responsible for managing daily operations unless the organization is an all-volunteer nonprofit.

Should nonprofit board members help with fundraising?

Yes. Nonprofit board members should help with fundraising, but that does not mean every board member has to directly ask for money. Board members can help by making introductions, thanking donors, inviting people to events, identifying prospects, sharing campaigns, and making a personally meaningful gift.

Why are nonprofit board members afraid of fundraising?

Many nonprofit board members are afraid of fundraising because they have not been trained, they think fundraising only means asking for money, or they feel uncomfortable talking about finances. Clear expectations, simple scripts, and specific fundraising tasks can help board members become more confident.

How can nonprofit boards improve meeting effectiveness?

Nonprofit boards can improve meeting effectiveness by using strategic agendas, sending reports in advance, limiting operational updates, focusing on key decisions, reviewing financial and program outcomes, and making space for meaningful discussion about the future of the organization.

What is the difference between nonprofit governance and management?

Governance is the board’s role. It includes oversight, strategy, financial accountability, and mission protection. Management is the staff’s role. It includes daily operations, program delivery, supervision, and implementation. Healthy nonprofits are clear about the difference.

How do you recruit better nonprofit board members?

To recruit better nonprofit board members, use a board matrix to identify the skills, relationships, experience, and perspectives your organization needs. Then recruit people who match those needs. Avoid filling board seats only with friends, familiar names, or people who simply say yes.

When should a nonprofit board member step down?

A nonprofit board member should step down when they can no longer attend meetings, fulfill expectations, participate meaningfully, support fundraising, or act in the best interests of the organization. Term limits and annual board check-ins make these transitions easier.

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If your nonprofit fundraising feels scattered, you are not alone.

A lot of organizations are trying to raise money with too few staff, too little time, and too many competing priorities.

So fundraising becomes reactive.

A campaign here.
An event there.
A donor email when someone remembers.
A board ask when things get uncomfortable.
A donation page that technically exists, but is not exactly inspiring anyone to whip out a credit card.

This is how good organizations end up stuck in fundraising chaos.

And let’s be clear: chaos is not a strategy.

In last week’s post, we talked about why nonprofit fundraising systems matter, especially when organizations are being asked to do more with less.

If you missed it, start here: Nonprofit Fundraising Is Getting Harder. Your Systems Need to Get Smarter.

That post was the wake-up call.

This one is the practical next step.

Because knowing you need better systems is one thing.

Building them is where the real work begins.

Here are seven fundraising systems every nonprofit needs to raise money more consistently.

1. A simple fundraising calendar

A fundraising calendar is one of the easiest systems to create, and one of the easiest to ignore.

That is a mistake.

Your fundraising calendar should not just include event dates and grant deadlines.

It should show how your nonprofit will build relationships, communicate with donors, ask for support, and report impact throughout the year.

A strong fundraising calendar includes:

• Appeal dates
• Donor thank-you activities
• Impact emails
• Monthly giving promotions
• Board fundraising actions
• Sponsor outreach
• Major donor meetings
• Social media campaigns
• Newsletter dates
• Year-end fundraising
• Lapsed donor follow-up
• Donation page review dates

The goal is simple: stop letting fundraising sneak up on you.

You should not be surprised by your own appeal.

That is frowned upon.

A fundraising calendar helps your organization move from “Oh no, we need money” to “Here is our plan for keeping supporters engaged all year.”

That shift matters.

2. A donor thank-you system

If your donor thank-you process is basically “send the receipt and move on,” we need to talk.

A receipt is not a thank-you.

A receipt is proof that the transaction happened.

A real thank-you makes the donor feel seen, appreciated, and connected to the mission.

Your donor thank-you system should answer:

• Who sends the thank-you?
• How quickly does it go out?
• What does the message say?
• Does it feel personal?
• Do first-time donors get special attention?
• Do monthly donors get a different message?
• Do larger gifts trigger a phone call?
• Do board members help thank donors?
• Does the donor understand what their gift made possible?

This does not have to be complicated.

But it does have to be intentional.

A simple system might look like this:

1. Gift received.
2. Receipt sent immediately.
3. Personal thank-you email within 48 hours.
4. Handwritten note for gifts over a certain amount.
5. Phone call for major gifts or first-time larger gifts.
6. Impact update within 30 to 60 days.

That is a system.

And it can make a big difference.

Because donors who feel appreciated are more likely to stay connected.

And donors who stay connected are more likely to give again.

3. A donor retention system

Donor retention is one of the most important fundraising systems your nonprofit can build.

Why?

Because if donors give once and disappear, your organization is constantly starting over.

That is exhausting.

And expensive.

A donor retention system helps you keep track of who gave, who gave again, who lapsed, and who needs follow-up.

Start with these questions:

• How many donors gave last year?
• How many gave again this year?
• How many first-time donors made a second gift?
• Which donors have not given in 12 months?
• Which donors used to give more frequently?
• Which monthly donors stopped giving?
• Who needs a personal touch?

Then create a simple follow-up process.

For example:

• Send a warm thank-you after every gift.
• Send impact updates throughout the year.
• Contact first-time donors within 30 days.
• Reach out to lapsed donors before year-end.
• Invite loyal donors into monthly giving.
• Call long-time donors just to say thank you.

Not to ask.

To thank.

Radical, I know.

The point is to stop letting donors quietly drift away.

Your donors should not have to wonder whether their gift mattered.

Tell them.

Then tell them again.

4. A monthly giving system

Monthly giving is one of the most practical ways to create more predictable revenue.

It helps your donors give in a manageable way, and it helps your nonprofit plan with more confidence.

You do not need a giant monthly giving program to get started.

You need a simple invitation.

Your monthly giving system should include:

• A clear monthly giving option on your donation page
• A short explanation of why monthly gifts matter
• Suggested monthly gift amounts
• A welcome email for new monthly donors
• Regular updates for monthly supporters
• A plan to invite current donors to become monthly donors
• A thank-you message that feels special

Do not overcomplicate this.

You can start by inviting your existing donors.

They already care about your mission. They already trust you enough to give. They are the best audience for this kind of invitation.

Your message can be simple:

“Monthly donors help us provide steady support all year long.”

Or:

“Your monthly gift helps us plan ahead, respond faster, and serve more people without starting from zero every month.”

Monthly giving is not just about convenience.

It is about consistency.

And consistency is exactly what many nonprofits need.

5. A board fundraising system

Many nonprofit leaders are frustrated because their board members are not helping with fundraising.

Fair.

But sometimes board members are not helping because they have no idea what “help with fundraising” actually means.

That phrase is too vague.

It sounds like you are asking them to walk into a room, shake a stranger’s hand, and come back with a $50,000 check.

No wonder people freeze.

Board fundraising works better when it is specific, realistic, and matched to different comfort levels.

Your board fundraising system should include clear options, such as:

• Make a personal gift.
• Thank donors.
• Invite people to events.
• Introduce staff to potential supporters.
• Share campaign messages.
• Identify possible sponsors.
• Host a small gathering.
• Call lapsed donors.
• Tell the organization’s story in the community.

Not every board member has to do the same thing.

But every board member should do something.

The system is not “go fundraise.”

The system is:

Here are five ways board members can help this quarter.
Here is the script.
Here is the timeline.
Here is who is responsible.
Here is how staff will support you.
Here is how we will follow up.

That is how you turn board fundraising from vague guilt into actual action.

6. A better donation page system

Your donation page may be costing you money.

Not because your mission is weak.

Not because people do not care.

But because the page is confusing, hidden, outdated, slow, or emotionally flat.

People should not need a treasure map to give you money.

Your donation page should make giving easy.

Review your page and ask:

• Is the donation button easy to find?
• Does the page clearly explain why giving matters?
• Is the form simple?
• Does it work well on mobile?
• Are monthly giving options easy to select?
• Are suggested gift amounts helpful?
• Does the page feel trustworthy?
• Does the thank-you message feel warm?
• Are there too many distractions?
• Is the donor told what happens next?

If your donation page feels like an afterthought, fix it.

This is low-hanging fruit.

And unlike real fruit, it will not rot in the staff kitchen.

A good donation page does not need to be fancy.

It needs to be clear, easy, and emotionally connected to your mission.

7. An impact storytelling system

Donors need to see the difference their support makes.

Not just once a year.

Not just in the annual report.

Regularly.

An impact storytelling system helps your nonprofit collect and share stories throughout the year, so you are not scrambling when it is time to send an appeal.

Your system might include:

• One client story per month
• One donor impact story per month
• One staff reflection per quarter
• One volunteer story per quarter
• One program win each month
• One “because of you” email each month
• One photo or quote from the field each week

You can also create a simple story bank.

Track:

• Who was helped?
• What changed?
• What problem was solved?
• What role did donors play?
• What quote or detail makes the story feel human?
• What photo or visual could support the story?
• Do we have permission to share it?

This helps you avoid the dreaded blank screen when you need content.

And it helps donors understand that their giving matters.

Because fundraising is not just asking.

Fundraising is showing people the difference they can make.

Start with one system

Here is the important part.

Do not try to build all seven systems at once.

That is how you end up with a beautiful spreadsheet, fourteen tabs, and absolutely no progress.

Start with one.

If your donors are not being thanked well, start with the thank-you system.

If donors are not giving again, start with retention.

If your revenue feels unpredictable, start with monthly giving.

If your board is disengaged, start with board fundraising roles.

If people are clicking away before they donate, start with your donation page.

Pick the system that would make the biggest difference right now.

Build it.

Use it.

Improve it.

Then move to the next one.

That is how sustainable fundraising gets built.

Not through panic.

Not through perfection.

Through repeatable systems that make the work easier to manage and easier to sustain.

The bottom line

Nonprofit fundraising does not have to feel like constant chaos.

It will always take work.

It will always require relationships.

It will always require asking.

But it does not have to depend on last-minute scrambling, staff heroics, and board members who are vaguely “willing to help” but never actually do anything.

Your nonprofit can build better systems.

1. A fundraising calendar.
2. A donor thank-you system.
3. A donor retention system.
4. A monthly giving system.
5. A board fundraising system.
6. A donation page system.
7. An impact storytelling system.

None of these systems has to be perfect.

They just have to exist.

Because when your systems get stronger, your fundraising gets more consistent.

And when your fundraising gets more consistent, your mission gets stronger.

That is the whole point.

If you are still wondering why this matters so much right now, go back and read the first post in this series: [Nonprofit Fundraising Is Getting Harder. Your Systems Need to Get Smarter.]

It explains why scattered fundraising is breaking down and why stronger systems are no longer optional.

Need practical tools to strengthen your fundraising?

Success For Nonprofits offers templates, guides, and toolkits to help nonprofit leaders build stronger fundraising systems, engage board members, improve donor retention, and raise money with more confidence.

Because your mission deserves more than last-minute fundraising panic.

And so do you.

FAQ: Fundraising Systems Every Nonprofit Needs

What fundraising systems does every nonprofit need?

Every nonprofit needs systems for donor thank-you messages, donor retention, monthly giving, board fundraising, donation page improvement, impact storytelling, and annual fundraising planning.

How can a small nonprofit build a fundraising system?

A small nonprofit can start by choosing one system to improve first, such as donor follow-up or a fundraising calendar. The goal is to create simple, repeatable steps that staff and board members can follow.

Why is donor retention important?

Donor retention is important because it is usually easier to keep existing donors than to constantly find new ones. Strong donor retention helps nonprofits build more reliable support over time.

How can board members help with fundraising?

Board members can help by making personal gifts, thanking donors, making introductions, inviting people to events, identifying sponsors, sharing campaigns, and talking about the organization in the community.

What makes a good nonprofit donation page?

A good nonprofit donation page is easy to find, simple to use, mobile-friendly, emotionally clear, and focused on impact. It should make giving feel easy and meaningful.

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Nonprofits are being asked to do more with less, and the old way of fundraising is not going to cut it anymore.

A few emails, one annual appeal, a tired event, and a board that “supports fundraising” in theory is not a fundraising system.

It is a wish with a logo.

And right now, nonprofit leaders need more than wishes.

They need systems.

Across the country, nonprofits are facing increased demand, financial uncertainty, staffing challenges, and serious burnout. Many organizations are being asked to serve more people, solve more problems, and raise more money with fewer people and less breathing room.

Lovely.

Just what every exhausted nonprofit leader needed, right?

But here is the hard truth: when the pressure increases, scattered fundraising breaks faster.

If your nonprofit’s fundraising depends on last-minute appeals, heroic staff effort, board guilt, inconsistent donor communication, and the occasional “maybe this event will save us” moment, you do not have a fundraising system.

You have fundraising chaos.

And chaos is expensive.

It costs you money.
It costs you donors.
It costs you staff energy.
It costs you momentum.
It costs you confidence.

The good news?

You do not need a massive development department to build better fundraising systems.

You need clarity. You need consistency. You need follow-through. And you need to stop treating fundraising like something you squeeze in after everything else.

Because fundraising is not extra.

Fundraising is mission work.

What is a nonprofit fundraising system?

A nonprofit fundraising system is the repeatable process your organization uses to raise money, build donor relationships, communicate impact, and keep supporters engaged over time.

It is not one campaign.

It is not one event.

It is not one person who “just knows how to do it.”

A fundraising system includes the simple structures that help your nonprofit raise money more consistently, such as:

• Donor follow-up
• Thank-you processes
• Monthly giving
• Board fundraising roles
• Donation page improvements
• Email communications
• Storytelling
• Sponsor outreach
• Appeal calendars
• Donor retention tracking
• Impact reporting
• Clear calls to action

In other words, a fundraising system helps your organization stop reinventing the wheel every time money gets tight.

And please believe me, the wheel does not need to be reinvented.

It needs to be put on the car.

Why nonprofit fundraising feels harder right now

If fundraising feels harder, you are not imagining it.

Nonprofits are operating in a messy environment.

Community needs are rising. Costs are higher. Staff are stretched. Donors are more selective. Funders are overwhelmed. Board members are often unsure what to do. And many nonprofit leaders are carrying the emotional weight of trying to keep programs alive while smiling through meetings like everything is fine.

Everything is not fine.

The problem is not that nonprofit leaders do not care.

They care deeply.

The problem is that too many organizations have never been given the time, tools, or permission to build fundraising infrastructure.

So everything becomes reactive.

You need money, so you send an appeal.
You need donors, so you post on social media.
You need sponsors, so you dust off last year’s packet.
You need board help, so you say, “Please share this with your networks,” and then everyone quietly pretends they did.

That model is not built for the pressure nonprofits are under now.

A stronger fundraising system is proactive.

It asks:

• Who are our donors?
• How are we keeping them engaged?
• What do they need to understand?
• How often are we communicating?
• Are we thanking people well?
• Are we asking consistently?
• Are we making it easy to give?
• Are we giving board members specific actions?
• Are we tracking what works?
• Are we building relationships before we need money?

That is where the shift happens.

Fundraising gets smarter when it becomes less random.

The old way of fundraising is too fragile

Many nonprofits are still relying on a fundraising model that looks something like this:

Panic in March.
Event in May.
A few social media posts in July.
A year-end appeal in November.
A rushed email in December.
A board reminder that everyone ignores.
Repeat.

That is not a strategy.

That is a seasonal anxiety disorder with a donation button.

A fragile fundraising model depends on urgency instead of planning.

It depends on staff memory instead of documented systems.

It depends on donor goodwill without enough donor care.

It depends on board members magically knowing what to do.

It depends on people giving again even if they barely heard from you after their last gift.

That is not sustainable.

And it is definitely not fair to the people trying to hold the organization together.

Your donors need more than an ask

One of the biggest fundraising mistakes nonprofits make is only communicating with donors when they need something.

That gets old fast.

Imagine if a friend only texted you when they needed a ride to the airport.

Eventually, you would stop answering.

Donors are the same way.

They need to hear from you between asks.

They need to know what their giving made possible. They need stories. They need progress updates. They need to feel like they are part of something meaningful, not just part of a database.

This does not mean you need to send a 14-page newsletter every week.

Please do not.

It means you need a simple donor communication rhythm.

For example:

• One thank-you message after a gift
• One impact email each month
• One donor story or client story each month
• One behind-the-scenes update each quarter
• One clear fundraising ask when appropriate
• One personal touch for major donors or loyal supporters

Simple.

Repeatable.

Human.

That is the system.

Donor retention should be a top priority

If your nonprofit wants to raise more money, one of the smartest places to start is with the donors you already have.

New donors are wonderful.

But keeping existing donors is usually more efficient than constantly trying to find new ones.

If someone already gave to your organization, that person has already said, “This matters to me.”

Your job is to help them keep caring.

That means donor retention should not be an afterthought.

It should be part of your fundraising plan.

Start by asking:

• How many donors gave last year?
• How many gave again this year?
• How many first-time donors gave a second gift?
• How many monthly donors stayed active?
• How many lapsed donors did we contact?
• How quickly did we thank donors?
• Did donors hear what their gifts accomplished?

If you do not know the answers, do not panic.

But do start tracking.

Because what gets ignored usually gets worse.

Fundraising systems reduce burnout

Here is the part people do not talk about enough.

Better fundraising systems are not just about raising more money.

They are also about reducing burnout.

When there is no system, everything depends on memory, urgency, and whoever is willing to stay late.

That is how staff burn out.

That is how donor follow-up falls through the cracks.

That is how campaigns get rushed.

That is how opportunities get missed.

That is how the executive director becomes the entire fundraising department, communications department, crisis response team, and emotional support raccoon.

No one can operate that way forever.

A good system creates repeatable steps.

It helps staff know what happens next.

It helps board members understand their role.

It helps donors feel cared for.

It helps leaders make better decisions.

It gives your organization a little more oxygen.

And oxygen is not a luxury.

The bottom line

Nonprofit fundraising is getting harder.

That does not mean your organization should panic.

It means your organization needs to get more intentional.

You do not need to do everything.

You do not need to chase every trend.

You do not need to launch six new campaigns at once.

You need stronger systems.

• A system for thanking donors.
• A system for keeping donors connected.
• A system for monthly giving.
• A system for board fundraising.
• A system for telling your story.
• A system for making giving easy.
• A system for following up.
• A system for raising money before the crisis hits.

Because hope is lovely.

But hope is not a fundraising plan.

And in this season, nonprofits need more than good intentions and heroic exhaustion.

They need fundraising systems that are clear, consistent, and built to last.

Want the practical next step?

In the next post, we will break down seven fundraising systems every nonprofit needs to raise money more consistently, without burning everyone out in the process.

Because your mission deserves more than last-minute fundraising panic.

And honestly?

So do you.

FAQ: Nonprofit Fundraising Systems

What is a nonprofit fundraising system?

A nonprofit fundraising system is a repeatable process for raising money, communicating with donors, tracking relationships, making asks, thanking supporters, and reporting impact. It helps nonprofits raise funds more consistently instead of relying on last-minute appeals or scattered efforts.

Why is nonprofit fundraising getting harder?

Nonprofit fundraising is getting harder because many organizations are facing increased demand, financial uncertainty, donor retention challenges, rising costs, and staff burnout. These pressures make it more important for nonprofits to build clear and consistent fundraising systems.

Why do nonprofits need fundraising systems?

Nonprofits need fundraising systems because random, last-minute fundraising is not sustainable. Systems help organizations communicate consistently, retain donors, engage boards, improve follow-up, and raise money with more confidence.

How do fundraising systems reduce burnout?

Fundraising systems reduce burnout by creating repeatable processes, clear roles, and planned communication. Staff do not have to start from scratch every time money is needed.

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Let’s just say the quiet part out loud.

Federal funding cuts, freezes, delays, and policy shifts are not some distant threat nonprofits can worry about later.

They are happening right now.

And nonprofits are feeling it.

Programs are being questioned.

Contracts are being delayed.

Grant opportunities are changing.

Reimbursements are getting harder to count on.

Leaders are trying to make budget decisions without clear answers.

And communities that already have too little are being asked to absorb even more uncertainty.

Let me be clear.

This is not normal belt-tightening.

This is not just another budget season.

This administration’s funding actions are creating real harm for nonprofits and the communities they serve.

That does not mean we panic.

It means we tell the truth.

Then we plan.

Recent reporting and sector research confirm what nonprofit leaders are already seeing. The National Council of Nonprofits has warned that federal funding cuts are driving service disruptions and harming communities, noting that even small pauses in federal grants can lead to staff reductions, delayed services, longer wait lists, and closed programs.

The Urban Institute also found that about one-third of nonprofits experienced at least one government funding disruption, including funding losses, delays, pauses, freezes, or stop-work orders. Those disruptions were linked to staffing reductions, fewer programs, fewer program locations, and fewer people served.

And this is not just a “big nonprofit” problem.

The Urban Institute reported in March 2026 that without government grants, 60% to 86% of nonprofits in every state would have been at risk of operating at a loss based on recent financial data.

So no, you are not being dramatic.

You are paying attention.

And yes, you should be concerned.

But here is the hard part.

Nonprofit leaders do not get the luxury of only being angry.

You can be angry.

You can be worried.

You can be frustrated.

Frankly, you should be.

But then you still have to lead.

And no, calm does not mean complacent.

I am not okay with what is happening. I am not going to pretend these cuts, freezes, delays, and policy shifts are just another normal challenge nonprofits have to “adapt” to with a smile and a Canva graphic.

They are causing real harm.

But nonprofit leaders still have to lead through it.

That means we tell the truth.

We protect our people.

We organize our information.

We make the strongest plan we can.

And we do not let panic drive the car.

Because panic is a terrible driver.

First, Know Exactly How Exposed You Are

Before you start rewriting your entire strategic plan at midnight with a half-eaten granola bar and a stress headache, you need facts.

Not vibes.

Not rumors.

Not “I heard from another executive director that everything is going away.”

Facts.

Start by answering these questions:

How much of your current budget comes from federal funding?

How much comes from state, county, or city dollars that originate from federal funding?

Which programs depend on that money?

Which staff positions are paid by those funds?

Which contracts or grants are already awarded?

Which ones are pending?

Which ones are reimbursable, meaning you spend the money first and wait to get paid back?

That last one matters. A lot.

A delayed reimbursement can wreck your cash flow even if the grant technically still exists.

This is where a grant tracking spreadsheet becomes your new best friend.

Not because spreadsheets are glamorous.

They are not.

No one has ever said, “You know what really brings me joy? Conditional formatting.”

But a good grants spreadsheet gives you control.

And right now, control is the assignment.

Your spreadsheet should include:

• Funder name
• Funding source, including whether federal dollars are involved
• Grant amount
• Program supported
• Start and end date
• Reimbursement or upfront payment
• Reporting deadlines
• Renewal likelihood
• Current status
• Risk level
• Notes from funder communication
• Backup funding possibilities

You do not need perfection.

You need visibility.

Because you cannot protect what you cannot see.

Separate the Fire From the Smoke

In a chaotic funding environment, everything feels urgent.

But not everything is actually on fire.

Some funding is at immediate risk.

Some funding is delayed but likely to continue.

Some funding may be affected next fiscal year.

Some funding is making everyone nervous because we are all living in the nonprofit version of a group text with no clear answers.

Your job is to sort the fire from the smoke.

Create three categories.

Category 1: Immediate Risk

This includes grants or contracts that have already been paused, canceled, delayed, placed under review, or connected to a stop-work order.

These need fast action.

Call the funder.

Document everything.

Review the grant agreement.

Talk to your finance person.

Update your board.

Look at cash flow.

Do not wait for the next board meeting six weeks from now while everyone calmly eats muffins and pretends this is fine.

Category 2: Possible Risk

This includes funding connected to federal priorities that may be under review, politically vulnerable, or dependent on future appropriations.

These need scenario planning.

Not panic.

Not paralysis.

Planning.

Category 3: Low Current Risk

This includes funding that appears stable for now.

Do not ignore it.

But do not spend all your energy worrying about money that is not currently showing signs of trouble.

Nonprofit leaders have a bad habit of putting out imaginary fires while the actual trash can is smoking in the corner.

Don’t do that.

This Is Not Your Failure

If your organization is scrambling right now, I want you to hear this clearly.

This is not because you failed.

This is not because you were careless.

This is not because you should have magically predicted every federal decision before it happened.

Nonprofits are being asked to absorb chaos they did not create.

Many are being expected to keep serving more people with fewer resources, less certainty, and no meaningful pause in community need.

That is not sustainable.

And it is not fair.

But blaming yourself will not help.

Freezing will not help.

Waiting for someone else to fix it will not help either.

The only useful move now is to get clear, get organized, and make decisions from facts instead of fear.

Build a 30, 60, and 90-Day Funding Response Plan

When federal funding gets shaky, your nonprofit does not need a 47-page crisis plan that nobody will read.

You need a short action plan.

Clear.

Practical.

Usable.

Start with 30 days.

In the Next 30 Days

Identify every government-related funding source.

Rank each one by risk.

Review your cash flow.

Contact funders where you need clarification.

Pause nonessential spending.

Prepare a short board update.

Review your reserve policy.

Pull your donor lists.

Update your grant calendar.

Create a communications plan in case services are affected.

That is enough for the first month.

Do not try to solve the entire future of American philanthropy before lunch.

In the Next 60 Days

Start building replacement funding options.

Look for private foundations that fund similar work.

Identify local government opportunities.

Reach out to major donors.

Review lapsed donors.

Build a short campaign around the program most at risk.

Strengthen your case for support.

Update your website donation page.

Make sure your impact data is easy to find.

Because here is the truth.

When money gets tight, vague nonprofits struggle.

Clear nonprofits compete.

In the Next 90 Days

Create a funding diversification plan.

Not a fantasy plan.

A real one.

Pick three to five funding streams to strengthen.

For most nonprofits, that might include:

• Individual donors
• Monthly giving
• Major gifts
• Private foundation grants
• Local business sponsorships
• Corporate partnerships
• Fee-for-service revenue
• Events that actually make money
• State, county, or city funding
• Planned giving, if your organization is ready

Notice I did not say, “Do everything.”

Doing everything is not a strategy.

It is how nonprofit leaders end up crying in their cars between meetings.

Pick the funding streams that make sense for your mission, capacity, audience, and staff.

Then build from there.

Stop Treating Donor Development Like a Nice Extra

This is where I am going to be lovingly annoying.

If your nonprofit has relied heavily on government funding and has not invested in individual donor development, this is your wake-up call.

Not a judgment.

A wake-up call.

Government funding can be powerful.

It can help scale programs, serve more people, and bring much-needed resources into communities.

But it can also create dependency.

And dependency is risky.

Especially when federal policy decisions become unstable, punitive, or disconnected from what communities actually need.

Individual donors give your organization something government funding rarely does.

Flexibility.

You can use unrestricted donations to fill gaps, respond quickly, keep staff in place, and protect programs while you figure out what comes next.

This is also why unrestricted donor support is not a luxury.

In moments like this, unrestricted support is what helps nonprofits survive political and funding chaos without abandoning the people they serve.

That does not mean you send one desperate email that says, “Help, everything is terrible.”

Please do not do that.

It means you build a donor development system.

A real one.

Start here:

• Make sure your donation page is easy to use.
• Add monthly giving as a clear option.
• Call your best donors.
• Thank people faster.
• Tell better impact stories.
• Segment your donor list.
• Re-engage lapsed donors.
• Ask board members to help open doors.
• Share what is at stake without sounding like the sky is falling.

Donors do not need drama.

They need clarity.

Tell them what is happening.

Tell them what your organization is doing.

Tell them how their support helps.

Then ask.

Not vaguely.

Not apologetically.

Ask clearly.

Your Board Needs to Be in This Conversation

This is not the moment for your board to nod sympathetically and then ask whether the gala centerpieces can be blue this year.

Your board needs to understand the financial risk.

They also need to understand their role.

That does not mean every board member suddenly becomes a major gifts officer.

Calm down, board members.

Nobody is sending you into the wild with a pledge card and a granola bar.

But it does mean board members should help with:

• Opening doors to donors
• Making thank-you calls
• Reviewing financial scenarios
• Identifying business connections
• Sharing the organization’s message
• Supporting emergency fundraising efforts
• Making their own meaningful gifts
• Advocating when appropriate
• Staying focused on strategy, not micromanaging staff

The board’s job is not to panic.

The board’s job is to govern.

That means asking good questions, understanding risk, and helping protect the mission.

Do Not Chase Every Grant Like a Golden Retriever With a Tennis Ball

When funding gets tight, nonprofits often start chasing every grant they can find.

This is understandable.

It is also dangerous.

Bad-fit grants waste time.

Tiny grants with huge reporting requirements drain capacity.

Restricted grants can make your budget look healthier than it actually is.

And grants that pull you away from your mission are not opportunities.

They are traps with deadlines.

Use a grant decision checklist before applying.

Ask:

Does this grant align with our mission?

Do we already do this work?

Can we meet the requirements?

Do we have the data?

Is the amount worth the effort?

Will it cover real costs?

Does it require a match?

Can we sustain the work after the grant ends?

Are we applying because this is strategic, or because we are scared?

That last question is the big one.

Fear is not a funding strategy.

Communicate With Funders Before You Are in Crisis

Please do not wait until payroll is sweating in the corner before contacting your funders.

Funders do not like surprises.

Neither do board members.

Neither do staff.

Nobody enjoys a surprise financial emergency.

It is not a birthday party.

If a program is at risk, talk to funders early.

Ask whether grant terms can be adjusted.

Ask whether reporting timelines can shift.

Ask whether funds can be converted to general operating support.

Ask whether emergency support is available.

Ask if they know other funders supporting organizations affected by federal cuts, freezes, delays, or policy changes.

Some funders will not be able to help.

Some will.

But they cannot help with problems they do not know exist.

Protect Your Staff From Chaos Whiplash

Your staff already knows something is up.

They hear the news.

They feel the tension.

They notice when leadership gets weird and starts having closed-door meetings with spreadsheets.

Do not leave them guessing.

You do not have to share every detail.

You do not have to have every answer.

But you should communicate what you can.

Try this:

“We are reviewing all current and potential funding risks. At this point, we are gathering information, looking at scenarios, and making a plan. We will keep you updated as we know more.”

That is honest.

That is calm.

That is leadership.

Silence creates rumors.

Rumors create fear.

Fear makes people update their resumes.

Update Your Messaging Now

When funding gets uncertain, your organization’s messaging matters more than ever.

Can people quickly understand what you do?

Can they see who you serve?

Can they understand the stakes?

Can they find your impact?

Can they donate easily?

Can they explain your work to someone else?

If not, fix it.

This is not cosmetic.

This is survival.

Your website, donation page, email list, social media, annual report, and case for support should all make one thing clear:

Your organization matters.

Your work is needed.

The community is better because you exist.

And support right now makes a real difference.

Not someday.

Now.

What Nonprofits Should Not Do Right Now

Let’s save everyone some time.

Do not pretend nothing is happening.

Do not terrify your donors.

Do not send a crisis appeal every other Tuesday.

Do not hide financial concerns from your board.

Do not cut fundraising first.

Do not assume one big grant will save you.

Do not apply for grants that make no sense.

Do not wait for perfect information.

Do not make permanent decisions based on temporary fear.

Do not let chaos in Washington convince you that your organization has no power.

And please, for the love of unrestricted funding, do not say, “We just need to get our name out there” and then post three random graphics on Facebook.

Visibility is not the same as strategy.

The Real Goal: More Options

The goal is not to become completely immune to federal funding changes.

That is probably not realistic for many nonprofits.

The goal is to have more options.

More donor relationships.

More funder relationships.

More cash visibility.

More board engagement.

More unrestricted revenue.

More clarity.

More discipline.

More control.

Because when one funding source shifts, your organization should not have to immediately wonder whether it can survive.

That is the work now.

Not panic.

Planning.

Not drama.

Discipline.

Not magical thinking.

Math.

Very rude, I know.

But math is undefeated.

Start With These Five Moves

If you are overwhelmed, start here.

1. Build or update your grants spreadsheet.

List every grant, contract, deadline, amount, restriction, reimbursement status, and risk level.

2. Review your cash flow.

Know what happens if payments are delayed 30, 60, or 90 days.

3. Identify your most vulnerable programs.

Know which services depend on at-risk funding.

4. Strengthen donor development.

Start with current donors, lapsed donors, monthly donors, and board connections.

5. Talk to your board.

Give them facts, options, and a role.

That is enough to begin.

You do not have to fix everything this week.

But you do need to start.

Final Thought

Federal funding cuts are real.

The chaos is real.

The harm to nonprofits and communities is real.

And pretending otherwise helps no one.

But panic is not a plan.

Nonprofit leaders need room to be angry, worried, and deeply frustrated.

I am all three.

But then we have to turn toward the work.

We assess the risk.

We organize the numbers.

We protect programs where we can.

We talk to donors.

We bring the board into the conversation.

We tell the truth about what is happening.

And we make the strongest plan possible in a moment that feels anything but stable.

This is not the time for silence.

This is not the time for magical thinking.

This is the time for leadership.

Not because everything is fine.

Because everything is not fine.

And the communities nonprofits serve deserve leaders who are clear-eyed, prepared, and willing to fight for the work.

FAQ: Federal Funding Cuts and Nonprofit Planning

How are federal funding cuts affecting nonprofits?

Federal funding cuts, freezes, delays, and stop-work orders can affect nonprofits by reducing revenue, delaying reimbursements, forcing program changes, creating cash flow problems, and pushing organizations into difficult staffing decisions. Sector research has already shown that government funding disruptions are connected to reduced staffing, fewer programs, fewer program locations, and fewer people served.

What should nonprofits do first if federal funding is at risk?

The first step is to identify your exposure. List every government grant and contract, determine which programs and staff positions depend on that funding, review cash flow, contact funders for clarification, and brief the board with facts rather than rumors.

How can nonprofits prepare for government grant cuts?

Nonprofits can prepare by creating a 30, 60, and 90-day response plan, building a grant tracking spreadsheet, strengthening donor development, reviewing cash reserves, identifying alternative funding sources, and developing clear communication for staff, board members, funders, and donors.

Why is a grants spreadsheet important during funding cuts?

A grants spreadsheet helps nonprofits see which grants are active, pending, restricted, reimbursable, renewable, or at risk. This allows leadership to make better decisions, prioritize follow-up, manage deadlines, and understand the real financial impact of possible cuts or delays.

Should nonprofits stop applying for grants during federal funding uncertainty?

No. But nonprofits should be more strategic. Focus on opportunities that align with your mission, cover real costs, have manageable reporting requirements, and support existing programs or strategic priorities. Do not chase bad-fit grants just because everyone is nervous.

How can nonprofits replace lost federal funding?

Most nonprofits cannot replace federal funding overnight. However, they can build a stronger funding mix by developing individual donors, monthly giving, major gifts, private foundation grants, corporate partnerships, local government support, sponsorships, and earned revenue when appropriate. Recent reporting has also noted that some nonprofits are looking to local governments as one possible source of replacement funding as federal dollars become less stable.

What role should the board play during federal funding cuts?

The board should help assess risk, review financial scenarios, support donor development, open doors to funders and partners, make meaningful personal gifts, and stay focused on governance. This is a strategic leadership moment, not just a staff problem.

How should nonprofits communicate with donors about funding cuts?

Nonprofits should communicate honestly and clearly. Donors need to understand what is happening, why the organization’s work matters, what is at stake, and how their support helps. The message should be urgent but not frantic.

What should nonprofits avoid during a funding crisis?

Nonprofits should avoid panic fundraising, hiding information from the board, cutting fundraising capacity first, applying for poor-fit grants, waiting too long to contact funders, and making permanent decisions based only on fear.

What is the best long-term strategy for nonprofits facing federal funding cuts?

The best long-term strategy is to reduce dependency on any single funding source. That means building unrestricted revenue, improving donor development, strengthening messaging, tracking grants carefully, maintaining cash reserves, and creating a realistic sustainability plan.

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Scroll down to explore this week's grants. Deadlines are always approaching, so take a look and see which ones might be the right fit for your nonprofit.

Happy grant writing!

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Jay L. Smith Family Foundation

Gives grants to organizations that promote family values, support the advancement of healthcare, and serve the disadvantaged.

Rolling Deadline

https://www.jaylsmithfamilyfoundation.org/request-an-application

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Truist Foundation

Supports nonprofits focused on building career pathways to economic mobility or strengthening small businesses.

Next Deadlines: July 31 and November 30, 2026

https://www.truistfoundation.org/grant-application

Bank of America Charitable Foundation

Support to U.S. nonprofits for stable housing and empowering communities projects.

Applications accepted now to June 29, 2026

https://about.bankofamerica.com/en/making-an-impact/charitable-foundation-grant-faq

William and Flora Hewlett Foundation

The Foundation supports nonprofits working to drive systemic change in the areas of education, the environment, and global development.

Rolling Deadline

https://hewlett.org/

Rota Foundation

The Foundation’s focus is on community nonprofits. Funds support organizations whose services are directed at charities that support the local communities where they live.

Applications accepted June 1 to June 30 and October 1 to October 30, 2026

https://www.therotafoundation.org

Costco Wholesale Charitable Support

Costco’s charitable efforts focus on programs that support children, education, and health and human services in the communities where it does business.  

Rolling Deadline

https://forms.benevity.org/eb5f89d4-4631-4c20-8681-0186712671a0

W.K. Kellogg Foundation

Supports communities, children, and families as they strengthen and create conditions that propel vulnerable children to achieve success. Funding priorities include programs focused on thriving children, working families, and building equitable communities. Submit letter of inquiry.

Rolling Deadline

www.wkkf.org

AAML Foundation

Supports programs that help families, parents, and especially children adversely affected by the breakup of the family unit. Also supports projects involving children in custody disputes, dependency cases, and similar situations, and programs that help children cope with family breakup.

Applications accepted to May 15 annually (check website for 2027 updates)

https://aamlfoundation.org/grant-application-policies/

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Scroll down to explore this week's grants. Deadlines are always approaching, so take a look and see which ones might be the right fit for your nonprofit.

Happy grant writing!

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U.S. Bank Foundation

The Foundation’s Community Possible Grants support nonprofits through three focus areas: Work, Home, and Play. Priority to organizations serving low- and moderate-income communities. Best fit for organizations working in community arts and culture, economic and workforce advancement, and safe and affordable housing. Organizations must be based in and serve U.S. Bank communities.

Rolling Deadline

https://www.usbank.com/about-us-bank/community/community-possible-grant-program.html

BNSF Railway Foundation

Supports communities served by BNSF Railway and funds organizations involved in health and human services, youth, civic services, education, and culture.

Rolling Deadline

https://bnsffoundation.org/how-to-apply

John Templeton Foundation

The Foundation supports interdisciplinary research and catalyzes conversations that inspire awe and wonder. Specific funding areas and more info on website.

Deadline: July 15, 2026    

https://www.templeton.org/grants/grant-calendar

Max and Victoria Dreyfus Foundation

The Foundation’s grant program supports nonprofits for which a relatively small amount of funding might make a large difference. The Foundation supports museums, cultural and performing arts programs; schools and hospitals; educational and skills-training programs; and other community-based organizations and programs. 

Deadline: November 10, 2026

https://www.mvdreyfusfoundation.org/

Hearst Foundations

A major national funder supporting well-established U.S. nonprofits in education, health, culture, and social services. Equipment or capital expenses may be eligible when aligned with the mission. Must primarily serve large geographic or demographic constituencies. 

Rolling Deadline

https://www.hearstfdn.org/applying-reporting/how-to-apply

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Cisco

Cisco focuses on innovative, tech-enabled solutions in four social investment areas, which include disaster relief, shelter, water, and food; education; economic empowerment; and climate resilience.

Rolling Deadline

https://www.cisco.com/c/en/us/about/csr/community/nonprofits/product-grant-program.html#~overview

ProLiteracy

ProLiteracy is seeking applications for its Literacy Opportunity Fund to meet the needs of U.S. nonprofits that are doing direct work with adult students. Funded by the Nora Roberts Foundation; grants awarded quarterly.

Next Deadlines: July 1 and October 1, 2026

https://www.proliteracy.org/Literacy-Opportunity-Fund

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