Dear Philanthropic Leader, CSR Director or Board Member, or Independent Donor,

Philanthropy stands at a crossroads — one that will shape the future of civil society in America. The year 2025 ushered in sweeping political changes, marked by federal retrenchment, policy reversals, and a shrinking commitment to public welfare. This shift has left both philanthropy and nonprofits in disarray. In the wake of widespread funding cuts and vanishing services, nonprofit organizations are being asked to assume roles once held by government — without the infrastructure or financial support to meet the scale of demand.  Nonprofits are stepping into these expanded roles with grit and urgency, but under immense pressure and precarious conditions. Philanthropic funders, once more removed from the frontlines, have now been thrust center stage as critical actors in preserving the social infrastructure that undergirds our communities. This moment demands more than reactive grantmaking — it calls for values-driven leadership, long-term investment, and a recommitment to equity and civic responsibility.

Nonprofits, as public charities, are the scaffolding of resilient communities. They deliver daily services, respond to emergencies, and bridge the gaps left by strained public systems. They are in every state, every congressional district, and in more than 95% of U.S. counties, and they depend on government grants to keep their doors open and their missions alive. In 2021, over 103,000 public charities reported receiving more than $267 billion in government funding (adjusted for inflation, that total surpasses $300 billion) — nearly three times the most recent estimates of foundation giving. In 435 out of 437 congressional districts, the average nonprofit could not meet its financial obligations without these funds. And in every state, 60-80% of grant-receiving nonprofits would face serious shortfalls if government support were withdrawn[1]. And so, they wait and monitor policy and funding shifts.

Most nonprofits operate without meaningful financial cushions and cannot absorb prolonged funding delays or cuts. They are facing a swift and severe fallout – shuttered programs, lost jobs, and in many cases, permanent closures — just as community needs are rising. In this turbulent time, civil society leaders are rallying to respond creatively to this tightening squeeze. Forward-focused organizations are answering the call. They are returning to the strategic drawing board, realigning mission and priorities, scoping down to values-based specialties, forging partnerships with values-aligned private sector actors, exploring mergers, investing in digital tools, and conducting operational pivots. These adaptations are impressive — but they are not enough.

Rising costs of goods and services, driven by inflation and supply chain disruptions, continue to strain already fragile budgets. Without greater capital and collaborative investment, nonprofits will remain in survival mode — unable to fully meet the growing needs of the communities they serve. This is where you, as philanthropic leaders, have the opportunity to take on a much larger, stabilizing role in our interdependent society. Put aside the 2025 (and before) version of thinking, where tax-exempt status, donor-advised funds, and corporate CSR rhetoric led decisions. In this new climate, there’s a greater responsibility in your hands. This responsibility is not only to the end-goal transformative outcomes, but to help bolster the general operating support and infrastructure that nonprofits need, as well as any rapid-response funds that can be appropriated as needed by nonprofits. In other words, in this moment, the most transformative giving may not be directed toward programs alone, but towards flexible funding to protect and build the vitality of the organization that make sustained service delivery possible.

In my conversations with funders, I have heard that you are already starting to go back to the drawing board on your funding models. You recognize that roles have shifted and that you carry a greater weight in this climate. From where I sit, there are various possibilities for you, as philanthropists, to rise as stabilizers and co-strategists. It requires you, first, to get clear on your mission, vision, and values and risks so that you can be purpose-led in your funding decisions. FSG published a framework tool entitled, Remaining Focused and Purpose-Led During Uncertainty: A Reflection Guide for Funders[2] where they encourage funders across the philanthropy spectrum (including private, family, and community foundations, corporate philanthropy and CSR programs, and philanthropic intermediaries) to walk through a series of guiding questions that will help support reflection on which funding domains you may be best positioned to focus on.

The domains are not prescriptive paths, but reflective lenses—each rooted in values-driven action and designed to help you align your strategies with the needs of the moment: (1) Protect: Safeguard the organizations and communities most at risk. This means loosening grant restrictions, offering legal and security support, and increasing annual giving to meet urgent needs. Protection is not passive—it is a proactive stance against erosion; (2) Resist: Challenge harmful policies and narratives. Fund pro-democracy efforts, independent media, and strategic litigation. Use your influence to shift public discourse and stand with those organizing for justice. Resistance is not partisan—it is principled; (3) Build: Invest in long-term infrastructure. Support leadership development, civic capacity, and nonprofit resilience. Building is not just about scale—it’s about sustainability and power-sharing; and (4) Bridge: Foster connection across divides. Convene unlikely partners, fund dialogue, and strengthen coalitions. Bridging is not naïve—it is necessary for systems change.  

Within these domains there are possibilities for collaborative strategies through pooled funds, bridge grants, adaptive learning cohorts. There are co-designing opportunities for evaluation frameworks that honor impact amidst uncertainty. And finally, there are possibilities for bold experimentation and shared learning that are grounded in transparency and humility across funders and grantees. There is no single right answer. But there is a shared imperative – to act with purpose, even when the path is uncertain.

The philanthropy spectrum has the capital, platform, and credibility to move the needle for nonprofits. I recognize that there is a profound tension in the response and risk options at play. There is, however, also a profound opportunity for bold, thoughtful action.

Sincerely,

Your Capacity Building Partner

[1] Urban Institute. (2025, February 21). What is the financial risk of nonprofits losing government grants? Urban Institute. Retrieved August 15, 2025, from https://www.urban.org/research/publication/what-financial-risk-nonprofits-losing-government-grants.

[2] 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/