Andrew Simon, the Chronicle’s editor-in-chief, offers a sneak peek at what’s in each new issue. Available exclusively to subscribers, this newsletter gives you perspective on the most important trends and developments we’re following — as well as background on how we report and analyze key issues in the nonprofit world. Delivered once a month. (Subscribers only.)
From: Andrew Simon
Subject: Trump, Tariffs, Recession Threats: Making Sense of the Chaos
Dear Subscriber,
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Dear Subscriber,
We’re at the 100-day mark of the Trump administration, and many of you have barely had a moment to breathe. Economic uncertainty, threats to federal funding that supports nonprofits — and the causes that many foundations seek to advance — attacks on DEI efforts, and challenges to tax-exempt status are just a few of the issues keeping leaders up at night. It’s been nothing short of chaos.
In the new May issue, we try to make sense of that chaos. Here’s a preview:
Drew Lindsay takes a look at how donors responded to the four most recent economic downturns and what that might mean for charitable giving if we’re heading toward a recession. Drew finds that one thing is sure: Uncertainty dampens giving. “People will postpone their decisions and wait to resolve the uncertainty,” says Una Osili, associate dean for research and international programs at the Indiana University Lilly Family School of Philanthropy. And a long, deep downturn could reduce the number of charitable donors over the long run. However, foundation grant making is likely to go up in 2025, and donor-advised funds could increase grant making during a recession. When the Dow Jones Industrial Average fell almost 34 percent from 2007 to 2008 during the Great Recession, for example, DAF grant making grew 14 percent.
Ben Gose drills down on the effects of tariffs on charities. Organizations could be hit on two fronts: Their costs will likely rise, and their donors, stung by the tariff-induced stock-market volatility, may become less generous. Meanwhile, demand for services is on the rise. Take Center of Grace, a charity in the Kansas City area that provides clothing, hygiene items, and medical equipment to people in need. The charity is serving an increasing number of undocumented immigrants. Jessica Ferrell, the organization’s director of operations, said the immigrants are more comfortable seeking help from Center of Grace in the current political environment, given the more stringent requirements being enforced by programs that rely on federal support. But tariffs on Chinese imports could lead to increases in the cost of shoes and other clothing, forcing the group to make some tough decisions.
Eden Stiffman dives into the work of Diane Yentel, CEO of the National Council of Nonprofits. Barely four months into the job, she has taken part in two lawsuits against the Trump administration. NCN joined a suit against the White House to halt the funding freeze and then a another against the administration’s attempted federal funding cuts to nonprofits working to combat climate change, improve infrastructure, and protect public health. In mid-April, a federal judge ordered the administration to release billions of dollars in payouts. “We’ll either end the year somewhere on a spectrum of harm — from somewhat harmed to really potentially decimated — or we’ll end it strengthened by responding in this moment,” says Yentel.
Rasheeda Childress speaks with experts to identify six ways nonprofit leaders can boost morale in chaotic times. Among the insights: communicate clearly and empathetically, give staff space to grieve and express concerns, and celebrate wins. “We’ve seen very much an evolution in nonprofit leadership over the last few years,” says Ian Adair, CEO of the Seattle Police Foundation. “I think leadership today is more about taking care of the people responsible for the work, and not just the work itself.”
Also in the new issue:
Jim Rendon profiles Melinda French Gates, who made headlines last year when she left the Gates Foundation. French Gates has since released another book and announced a billion dollars in new funding — all while discovering creative ways to support women and inspiring even more of them to give. A big part of French Gates’s learning process has involved field visits to understand the importance of behavioral decisions in a household and how they affect the health of newborns and mothers. “Sometimes you have to let your heart break,” says Haven Ley, who worked at the Gates Foundation for seven years before leaving to help French Gates start Pivotal Ventures, a limited-liability company that makes grants, for-profit investments, and political contributions. “I do believe that is what she believes is her obligation as a person of privilege. She can’t look away.”
Plus: How to build donor relationships online — and at scale — what it takes to be a development director, a better approach to leadership transitions (opinion), and four underfunded strategies to lift the working class and strengthen democracy (opinion).
Listen: We have a new podcast
Hosted by our CEO Stacy Palmer, “Nonprofits Now: Leading Today” dives into how nonprofit leaders solve problems. Topics for this season include how to manage an intergenerational workplace, how to hire and retain top talent, and how to bring about meaningful change in tumultuous times.
In the first episode, Tim Dixon, co-founder of More in Common, offers research-based strategies leaders can use to bridge divides in the workplace and in their communities. Tune in as Stacy asks Tim to walk listeners through his approaches to persuading people with widely different views to unite and get things done. Listen on your favorite audio platform.
Speaking of bridging divides …
The best way to keep up with all the offerings from the Chronicle is to sign up for our Philanthropy Today newsletter. You’ll get updates every day about new items we have posted, plus a guide to what else you need to know from reporting by other news organizations.
By subscribing to Philanthropy Today, you’ll also receive a special newsletter delivered to your inbox every Thursday afternoon that’s dedicated to The Commons, our project that examines how philanthropy and nonprofits can best bring Americans together in a time of hyperpolarization.
In case you missed it, The Commons has recently featured:
Also, on May 8 at 2 p.m. Eastern, we’re hosting a webinar on how to build a monthly giving or sustainer program. Monthly gifts bring in about 31 percent of all online revenue for nonprofits, and that share is growing even as giving by individuals ebbs. As economic uncertainty increases, savvy fundraisers are focused on ramping up monthly giving to create a predictable and steady flow of donations and bolster their organizations’ financial health. Tune in for proven tactics to retain donors, get board members involved, and engage and recognize sustainers.
Thanks, as always, for being a subscriber — particularly in these chaotic times.
With gratitude,
Andrew Simon, editor-in-chief, Chronicle of Philanthropy
