How Funders Can Help Nonprofits Weather Tough Political Storms

The results of the 2024 election have left many nonprofits and funders facing steep challenges. From policy shifts to heightened scrutiny, the road ahead will test the resilience of civil society. For funders, this is not just a moment of reflection but also an opportunity for action. The choices made now will have a lasting impact on the ability of nonprofits to serve communities, protect rights, and advocate for change.

However, foundations and major funders aren’t without their own obstacles. Recent political rhetoric, like that of Vice President-elect J.D. Vance, has put philanthropy squarely in the crosshairs. With calls for higher taxes on endowments and increased payout requirements for large foundations, many grantmakers are feeling uncertain about their own ability to sustain long-term giving. These pressures, combined with debates over donor-advised funds and transparency requirements, mean that funders themselves are navigating an increasingly complex landscape.

Even in this environment, there are clear, practical steps that funders can take to help nonprofits survive and thrive. Here’s how you can make an immediate and meaningful impact:

Prioritize Regional and Local Strategies

In the face of a hostile national political climate, funders must recognize the critical importance of city, metro, regional, and state-specific strategies. While large national organizations often benefit from surplus resources and attention, the most meaningful and substantive change frequently happens at the local level. Cities and states are often the testing grounds for innovative solutions and resilient advocacy, making them essential focal points for impact. By investing in community-led initiatives and regional coalitions, funders can counteract national policy rollbacks and amplify change where it matters most. Supporting these localized efforts not only builds stronger, more self-reliant communities but also lays the groundwork for broader systemic shifts.

Smaller, community-based nonprofits often have the deepest ties to the people they serve, but they are also the most vulnerable to funding cuts. By supporting these organizations, funders can directly impact local communities and help sustain critical services where they’re needed most.

Don’t overlook the value of unrestricted funding for these groups. Grassroots nonprofits often work with lean budgets, so every dollar matters. Supporting them now means strengthening the social safety net in your own backyard.

One good example of this approach is the Mary Reynolds Babcock Foundation (MRBF), based in Winston-Salem, North Carolina. MRBF shows how a place-based funder – in their case, the South – can drive transformative change by deeply understanding and investing in their region. Their focus on long-term, unrestricted funding and local partnerships reflects a belief that the most effective solutions come from those closest to the work. By prioritizing strategies tailored to the South’s unique needs, MRBF demonstrates how funders rooted in a place can foster sustainable change where it matters most.

“I think there’s a real opportunity for philanthropy in the South, particularly in this moment of challenge and change. It’s really important for philanthropy to play a catalytic role by partnering with leaders and organizations who are authentically engaging in freedom work. Here at the Mary Reynolds Babcock Foundation, we’ve focused for years on moving people and places out of poverty, and have renewed commitments to establishing connections and supporting networks of leaders in their organizations – to accomplish the kind of power-building and the racial equity muscle-building necessary for us to do the kind of freedom work that this moment is calling for.”

-Flozell Daniels, President, Mary Reynolds Babcock Foundation

Provide Flexible Funding

Nonprofits are grappling with uncertainty on every front, from shifting regulations to surging demand for services. Flexible funding is one of the best ways to support them during these times. Unrestricted grants allow nonprofits to allocate resources where they’re most needed—whether that’s for legal challenges, emergency services, or day-to-day operations.

Nonprofits need funders to move beyond restrictive project-based grants and trust them to prioritize their own needs. This isn’t just helpful; it’s essential for their survival in unpredictable times.

Support Organizations Fighting for Marginalized Communities

Groups serving marginalized communities will likely face the greatest challenges under this administration. Nonprofits providing reproductive healthcare, immigrant rights, LGBTQ+ advocacy, and racial justice will need more resources to counter potential legal and funding threats.

Funders can step up by focusing on these areas, ensuring that the most vulnerable populations don’t bear the brunt of policy rollbacks. Even small increases in funding can have an outsized impact for grassroots organizations working at the frontlines.

Help Nonprofits Strengthen Advocacy and Communications

In a polarized environment, nonprofits need to tell their stories clearly and powerfully. Funders can help by investing in communications tools, social media campaigns, and digital advocacy platforms. This support will help nonprofits counter misinformation, rally supporters, and keep their missions visible to the public.

Advocacy is equally critical. Nonprofits will need to engage lawmakers, mobilize communities, and push back against harmful policies. Funders who prioritize advocacy can help ensure nonprofits remain a voice for their communities.

Invest in Staff Wellness

The people who make nonprofit work possible are under enormous strain. Long hours, emotional demands, and financial instability can lead to burnout, which weakens the very fabric of these organizations.

Funders can play a role in reversing this trend. Provide support for staff wellness programs, mental health resources, and fair compensation. By prioritizing the well-being of nonprofit workers, you’re investing in the long-term strength of these organizations.

Build Cross-Sector Collaboration

Nonprofits, businesses, and governments each bring unique strengths to solving social challenges. By encouraging collaboration, funders can amplify the impact of their investments and help nonprofits achieve larger-scale change.

Look for opportunities to fund partnerships that bring together diverse organizations working toward shared goals. Collaboration isn’t just a buzzword; it’s a strategy that delivers real results.

Prepare for Long-Term Change

While responding to immediate challenges is crucial, funders should also focus on helping nonprofits plan for the future. Investments in leadership training, strategic planning, and organizational resilience will position nonprofits to weather future uncertainties.

This is especially important for foundations facing increased payout demands or regulatory scrutiny. Balancing immediate giving with long-term investments ensures both nonprofits and their funders can remain effective for years to come.

Leverage Your Voice – And Use it to Amplify Other Voices

As a funder, you have a platform that extends beyond financial support. Use it to elevate the work of nonprofits, advocate for fair policies, and push back against narratives that undermine the value of civil society.

Speak up publicly and with your peers about the critical role nonprofits play in addressing society’s biggest challenges. By lending your voice, you can inspire others to act and help build a stronger foundation for change.

The challenges nonprofits face in the aftermath of this election are immense, but they are not insurmountable. Funders have a vital role to play in helping nonprofits navigate this difficult landscape, whether through flexible funding, advocacy support, or a renewed focus on local and grassroots organizations.

The road ahead will not be easy, but it is one worth traveling. By working together, funders and nonprofits can ensure that the work of protecting rights, serving communities, and fostering progress continues—no matter the obstacles.

Kindred Motes is the founder and managing director of KM Strategies Group, a social impact consultancy that helps nonprofits and social entrepreneurships navigate strategy, communications, and philanthropy.