Dear Nonprofit Leader,

Come gather ’round people, wherever you roam and admit that the waters round you have grown and accept it that soon you’ll be drenched to the bone. If your time to you is worth savin’, then you better start swimmin’ or you’ll sink like a stone, for the times they are a-changin’…  Bob Dylan’s lyrics seem as ever relevant as the day he penned them.

2025 ushered in changes that swept the social impact landscape, leaving both philanthropy and nonprofits in a swirl. As the swirl slows for now, there are a few things that are clear. Once seen as stopgaps for systemic failure, nonprofits are now expected to drive lasting change. In the wake of shifting federal responsibilities and widespread funding cuts, these organizations are being asked to assume roles that the government has carried for generations. This seismic shift comes without the necessary infrastructure or financial support to match the scale of the work. Nonprofits are stepping into these expanded roles out of necessity, not readiness—and they’re doing so under immense pressure.

…for the times they are a-changin’…

In the new social and funding landscape, philanthropists will be pulled on now more than ever to bridge the growing funding gap for nonprofits. Yet there’s a sobering reality: the places where funding is most urgently needed may not align with where philanthropists are most inclined to give. While many philanthropists are genuinely driven by a desire to advance social good, their giving often gravitates toward causes that reflect personal passions or tax incentives. Even when philanthropic priorities align with nonprofit needs, private generosity is no substitute for the scale and stability of federal funding. With greater need and fewer dollars, both nonprofits and philanthropists need to readjust their models.

…for the times they are a-changin’…

Funders across the philanthropic spectrum—private, family, and community foundations, corporate giving programs, and philanthropic intermediaries—are also facing a moment of profound uncertainty. The upcoming tax legislation slated for 2026 is poised to reshape philanthropic giving in profound ways—especially for nonprofits already stretched thin. Changes to itemization rules, including new floors, caps, and reduced tax benefits, will influence how and when donors choose to give. High-net-worth individuals, in particular, may want to consider accelerating contributions into 2025 and exploring trust-based vehicles such as charitable lead trusts to maximize impact.

But beyond timing and tax strategy, there’s a deeper imperative. As federal funding recedes—often in the very areas where support is most critical—nonprofits will be left to fill increasingly wide gaps. Ideally, philanthropic giving would respond to these shifts by prioritizing the sectors and communities most affected by federal retrenchment. Historically, philanthropy has gravitated toward funding projects with clear, measurable outcomes. Yet today’s reality demands a broader lens. Nonprofits will now require more staff, infrastructure, and operational support to absorb the responsibilities once held by government agencies. In this moment, the most transformative giving may not be directed toward programs alone, but to protect and build the vitality of the organization – the “unsexy” essentials: administrative costs, overhead, and the capacity-building resources that make sustained service delivery possible.

…for the times they are a-changin’…

The convergence of shifting tax legislation and increasingly fragmented philanthropic interests demands that nonprofit organizations—and their boards—return to the strategy drawing board with renewed urgency. Exceptional service delivery is not just about passion or mission; it’s about precision. And precision requires strategy.

While diversifying funding streams remains essential, nonprofits—regardless of their revenue models—must now think with surgical clarity. Like a skilled surgeon with a scalpel, organizations must identify and prioritize the areas where they are true specialists, where their interventions yield the highest return on investment for the communities they serve.  In this next season, nonprofits may need to slough low performing areas and those that were caught in mission drift and scope creep. Not only this, nonprofits need to be publicly clear on their mission and strategy, so that funders can clearly align to common values. Funding requests should clearly outline needed support efforts – identifying whether support is needed to protect, resist, or build, or bridge[1].

The landscape ahead will reward collaboration over competition. Nonprofits should proactively explore strategic alliances, joint ventures, or even mergers with mission-aligned organizations. These partnerships can reduce duplication, expand reach, and create more resilient service ecosystems. Early and frequent examination of these opportunities will be key to long-term sustainability.

In an increasingly noisy and skeptical funding environment, investing in clear, compelling, and data-informed communications is no longer optional. Nonprofits must articulate their unique value to both existing and prospective donors—not just through impact metrics, but through storytelling that connects emotionally and demonstrates relevance. Strategic messaging through smart communication technology can be the bridge between community need and donor action.

Boards must evolve from governance bodies to strategic engines. This means engaging in scenario planning, making difficult resource allocation decisions, and championing adaptive leadership—all while keeping the broader community’s needs at the center. When boards embrace this role, they help unlock the full potential of regional resources and ensure that every dollar and decision contributes to collective impact.

…for the times they are a-changin’…

The nonprofits that will thrive in the coming era are those that align internal strategy with external realities. This means sharpening focus on core competencies, forging strategic partnerships, investing in smart communications, and empowering boards to lead with clarity and courage. These organizations won’t just weather the storm—they’ll redefine what resilience looks like.

But let’s be clear: with shrinking funding and rising demand, the status quo is no longer sustainable. Nonprofits cannot be expected to deliver the same results with fewer resources. It’s all hands on deck. This moment calls for a new choreography—an agile, intentional dance between philanthropy and nonprofits, where trust, transparency, and shared vision guide every step.

Now is the time for nonprofit leaders, board members, and funders to come together and reimagine what’s possible.

• Nonprofits must reassess their strategic priorities, invest in capacity, and seek out bold collaborations.
• Boards must lean into adaptive leadership, helping organizations make tough but necessary decisions with community impact at the forefront.
• Philanthropists and funders must look beyond programmatic outcomes and invest in the infrastructure that makes those outcomes possible—staff, systems, and sustainability. They should also consider get clear on their own mission and values, so that they can best determine whether to use their funding to protect, resist, or build, or bridge​.

Together, we can build a sector that doesn’t just survive the next wave of challenges—but rises to meet them with innovation, integrity, and impact…for the times they are a-changin’…

Sincerely,

Your Strategic Planning Partner

[1] Harper, J., Juster, J. S., & Robertson, C. W. (2025, August 5). Remaining focused and purpose‑led during uncertainty: A reflection guide for funders. FSG & Collective Impact Forum. Retrieved August 7, 2025, from https://collectiveimpactforum.org/resource/remaining-focused-and-purpose-led-during-uncertainty-a-reflection-guide-for-funders/