The nonprofit sector is heading into another storm. I've been here before, and I know the signs. I saw it in 2008. And I said it in 2020.
The economy slows, people feel the squeeze, and suddenly the money that once flowed toward services is redirected toward safety, crisis response, and immediate relief.
Too often, nonprofits brace themselves and then try to ride it out with the same tried (but perhaps not true) playbook: a fundraising gala, donor handouts, grand tours of programs. There's this lingering belief that if we just keep showing up, the money will too.
But it doesn't work that way anymore. It hasn't for a long time.
The Old Way Isn't Enough
In good times, leaning on donor generosity and traditional fundraising can cover gaps. In tough times, those strategies collapse under their own weight. Donors pull back. Foundations tighten their focus. Government funding shrinks or comes with strings that don't align with real needs.
Meanwhile, the people we serve don't stop needing us—they need us more.
That's the hard truth: the system as we've known it isn't built for resilience.
A Call for Creativity
Survival—and more than that, true impact—requires nonprofits to think differently.
Diversifying funding isn't a buzzword, it's a lifeline. It's time to stop depending on single-source revenue streams and start building financial ecosystems.
That means reimagining how we generate income:
- **Creating earned-revenue strategies** that are mission-aligned and sustainable.
- **Building deep partnerships with businesses**, not just as donors but as collaborators.
- **Building deep partnerships with other nonprofits.** Stop duplicating. Stop being territorial about funding. See the bigger picture and how what you do really well can be blended with what someone else does really well to help more people together.
- **Exploring creative financing models**—impact bonds, shared investment funds, collective giving circles.
- **Strengthening donor relationships** beyond events, connecting them to the mission in enduring ways.
Resilience for What's Ahead
The next downturn isn't a question of "if," it's a matter of "when." And when it comes, those who invested in creativity, innovation, and financial diversity will still be standing. More importantly, they'll still be serving.
We have a choice right now. We can keep walking the same path, hoping the old models carry us through. Or we can acknowledge the truth—that money isn't going to "just come in"—and start building stronger, smarter, and more resilient funding structures.
The future belongs to the nonprofits willing to be bold.