Quick Stops Along the Way is a monthly collection of issues, challenges, and thoughts I think you’ll find helpful on the road ahead. Send your questions to me for future Quick Stop newsletters.
Will the impact of tariffs affect our fundraising this year? A simple answer to this question is …
… very probably, yes. Some opinions lean negative due to the unpredictability surrounding the tariff situation. While recent developments offer some hope, we remain in an uncertain period, which historically leads to a decline in giving until conditions stabilize.
Real-Time Data
A popular online fundraising platform, Donorbox, reported a sharp decline of 37% in giving between April 2 (when the first round of tariffs was announced) and April 20. Donorbox helps 35,000 charities across the country.
Zeffy, a seven-year-old fundraising platform with a track record of raising more than $800 million for 50,000-plus nonprofits, recently reported that donations under $500 declined in April by 30% and for those giving $500 or more, it was down by half. Strong local leaders:
The Writing’s on the Wall
Most donors are nervous about the state of the economy and larger donors, who are watching their investments shift erratically and mostly down, are highly concerned. Their response is to reduce their gifts in size. Many will also put off giving until later in the year in the hopes they will see stability return. Some will reduce their giving by cutting the number of charities or skip this year’s payment, and even skip prior giving commitments.
Bullhorn Message for Donors and Nonprofits
Donors haven’t stopped caring, and nonprofits will probably see demand for services increase. Donors and nonprofits, more than ever, need solutions.
Tips for the Care and Feeding of Donors Today
- Increase messaging to all donors about the importance of their giving.
- Prepare to write heartfelt thank you notes and letters to donors even when they drop their gifts by sizeable amounts. Be ever mindful of how important every gift is, now and tomorrow.
- Pay attention to your long-term relationships with donors, even when they don’t give or miss payments on previous commitments.
Budget Tips for Surviving
- Board and executive leaders should all be creating worst-case/best-case scenarios for reduced operating revenue (20%, 30% and 50% losses).
- Conversations should start now for how to simplify services or drill deeply into the mission.
- Nonprofit executives, talk to your counterparts looking for any duplication of services and work to ensure that, despite possible program changes, basic services continue.
- Strengthen the referral network and be sure to keep each other apprised of program changes that might increase demand on other nonprofit organizations.
2025 will not stack up as a great fundraising year so get prepared.
For Every BFF (Best-Friend Funders)
- If we all give as much as we can right now, as often as we can, nonprofit organizations can navigate the challenges.
- If you have multi-year commitments and concerned about the ability to follow-through, start a conversation with the nonprofit organization and plan together how to manage the impact.
- When feasibility studies come knocking about possible capital campaigns, be as frank as possible about your funding capacity to help the nonprofit’s leadership make informed decisions to wait or go forward with a campaign highly dependent on major gifts.
Our nonprofit ecosystem that delivers human services every day is always fragile. Donors and nonprofits, working closely together, can ensure stability and a path forward to work through challenging times such as this.
Learning at the Leading Edge
A Quote for Reflection
For innovative leaders, we fail more than most see. The little hiccups, the projects that go astray, the projects that go slower than we like and any curves along the way teach us resilience. Physical, mental and emotional resilience are key skills for leaders to cultivate, and it can be done through challenges. I’ve learned to breathe through the challenges, dig into my resilience and keep going. There’s always a win when we’re resilient.
Jennifer Thompson
National Association of Social Workers New Jersey/Delaware
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