Early this year, as inflation fears grew and talk of a recession brewed, Laura MacDonald could tell that donors were getting skittish. The nonprofits and colleges that MacDonald’s fundraising firm works with were already reporting that supporters didn’t feel confident enough to commit to multiyear pledges.
Then the president announced tariffs, sparking what has become weeks of volatility in the stock and bond markets and deepening concerns about the economy and individual investment portfolios. The remainder of the year, MacDonald realized, is likely to be bumpy.
“Anxiety has always been the enemy of philanthropy,” says MacDonald, author of The Endowment Handbook: The Complete Guide to Building a Resilient Cause. “Anxiety is the enemy of most economic models.”
Unfortunately, this bout of high anxiety comes at the worst possible time for nonprofits that have lost federal funding or are feeling the knock-on effects. When donors don’t feel confident, they are reluctant to give, say MacDonald and others.
Still, that doesn’t mean they won’t give at all. Even amid economic turmoil, organizations can maintain relationships with donors that lead to gifts, says Debra Faulk, a chartered adviser in philanthropy who works with donors and previously led a nonprofit.
Faulk, MacDonald, and others offer tips to help nonprofits strengthen ties with supporters and keep the organization’s mission top of mind with donors.
“We’re not pretending [that] if you just do these three things, life’s going to be easy,” Faulk says. “But you’re going to be poised to be in a better position.”
Keep Engaging Donors
As nonprofits look to shore up their donor base during uncertain economic times, it’s important to stay engaged with supporters — whether they are giving or not.
“Donors respond based upon the depths of the relationship,” says Juanita Sheppard, vice president of foundation and government partnerships at the United Way of Greater Atlanta. Nonprofits with weak donor relationships will get a weak response in times of heightened need, she says. Organizations should talk to donors to find out what they’re thinking.
“This is the time to check in with them, ask them how they’re doing, get a sense of the level of anxiety they’re feeling,” MacDonald says. “‘How are you doing at this time? What are some of the things that are still important to you? Have those changed as a result of your economic circumstances?’”
Listen carefully and respond accordingly, says Laura Fredricks, a fundraising consultant and author of Hard Asks Made Easy.
“If they’re just like, ‘This is the best thing that ever happened, we’re going to go forward,’ then you [will] be on the forward-moving train with them,” Fredricks says. “Say what your situation is and ‘We want to still do X, Y, and Z. Would you consider making this gift?’”
If donors are unnerved and pull back, be supportive.
“Say, ‘We totally understand. If there’s anything we can help you with, let us know,’” Fredricks says. Also, ask if you can stay in touch. “Now you’ve planted the seed: ‘You care about me.’ And when all this is done, they’re going to remember you.”
Fundraisers also can ask if donors would like to help in other ways, Sheppard says. “Do they have certain levels of expertise that they can lend to my organization?” Assistance could include consulting or legal services or other help.
Make a Plan
Nonprofits need to recognize that national and world events are moving quickly — think of the back-and-forth tariff changes.
“I would implore every nonprofit right now to have what I call a ‘changing landscape plan,’ because the landscape is changing fast,” says Angela Barnes, managing director at Carter, a fundraising consulting firm.
A small team that includes a board member, the chief executive, a program chief, and a fundraiser should draft the plan as well as talking points to respond to donors’ questions.
“Things like, ‘How does the news impact the nonprofit? Will my gift be used in the way I intended?’ Those are key questions that could come down the pike quickly from donors,” Barnes says. Organization leaders should agree on those talking points because donors might call board members, the development director, and others.
“They all must have the same answer,” she says. “They may not deliver it in the same way, but it should align.”
When donors get different stories, Barnes says, they can become hesitant. “I say it’s OK to push pause,” she says, and tell a donor you’ll get back to them if you need to confer with your team.
Don’t Assume Everyone Is Hurting
Often, nonprofits mistakenly assume that supporters are troubled by economic turmoil, MacDonald says. Some donors might be in a good place.
“Depending on how long they’ve held that stock, it’s probably still appreciated,” she says.
MacDonald says she’s also seen an uptick in donors inquiring about making gifts from appreciated retirement assets through a qualified charitable deduction.
Sheppard, with the United Way of Greater Atlanta, says the organization has not seen a dip in donations because donors “understand the ebb and flow of the markets.”
At the same time, keeping in touch is really important to find out where donors stand, MacDonald says. “If I could avoid it, I wouldn’t be asking for a big gift today unless the donor was sending me signals that they’re resilient in the face of this market,” she says.
Additionally, it’s important to speak with supporters who have donor-advised funds, says Genevieve Shaker, professor of philanthropic studies at the Indiana University Lilly Family School of Philanthropy.
“We’ve found that DAF owners are pretty resilient in times of economic shock,” Shaker says. “Don’t make assumptions about what they can support.”
Challenges as Opportunities
If organizations see increasing numbers of donors with tight budgets, they might consider how to leverage donors who aren’t economically stretched, says Adam Nash, CEO of Daffy, a DAF sponsor.
“Working with your strongest donors to convert their donations into matching campaigns can be a great way to add urgency and appeal to your 2025 fundraising,” Nash says. Daffy allows its DAF holders to make matching gifts from their funds.
MacDonald says one of her clients successfully pitched a match to a donor who was on the fence but was inspired to leverage additional gifts from other donors.
Sheppard adds that during the pandemic, she realized that grocery stores and companies supplying essential goods were faring well, and she began soliciting their corporate giving programs. “So try to see the challenge of these times as an opportunity,” she says.
She and Fredricks also suggest partnering with similar organizations to get funding and meet the needs of the community both groups serve. “I’m not saying merge and give up your 501(c)(3) at all,” Fredricks says. “I’m just saying collaborate. A local could collaborate with a county or a state. That is a win-win because foundations always like to support collaborative communities.”
