New legislative developments in Washington are adding fresh challenges for funders and foundations. The “One Big Beautiful Bill Act” recently passed the House and now heads to the Senate, where further debate is expected. Thanks to strong sector advocacy, harmful provisions, such as revoking nonprofit status and taxing nonprofit branding, were removed before the final vote in the House. Still, significant concerns remain, including steep new excise tax rates for large foundations and limits on corporate charitable deductions. As the Senate takes up the bill, now is a critical time to stay informed, engage in advocacy, and prepare your funding strategy for what’s ahead.
To learn more about the tax bill, see CEO Paul D. Daugherty’s message:🚨 Latest Legislative Update: What’s Next for Nonprofits & Foundations in the Senate🚨.
In the face of these evolving challenges, funders need practical tools to stay grounded and effective. This resource roundup highlights strategies to help navigate uncertainty and sustain meaningful contributions. From flexible funding and long-term investments to policy advocacy and streamlined processes, these insights offer a roadmap for resilient grantmaking. Lean funders have always been nimble and responsive. Now is the time to build on that strength, respond to policy shifts, and stand in solidarity with the communities you support.
Making Sense of Economic Changes
Economic volatility and shifting federal policies are reshaping the financial realities for nonprofits. From rising costs to disrupted funding streams, these challenges can derail budgets and strategic plans. Lean funders who stay informed and respond proactively can offer crucial support, providing grantees with greater stability and confidence in an unpredictable environment.
- Federal Funding Uncertainty: What It Means for Foundations and Their Grantees
Executive actions, policy changes, and legal battles are creating instability in federal funding, putting pressure on nonprofit cash flow and long-term planning. Your Part-Time Controller (YPTC) outlines how funders can stay ahead of these changes and support grantees through periods of financial strain. Get guidance on navigating federal funding shifts. - Tariffs and Market Volatility: What Foundations Need to Know
Economic uncertainty is also hitting foundation endowments. Peter J. Klein of ALINE Wealth shares how rising tariffs and market fluctuations can affect philanthropic giving and offers strategies to protect assets, including inflation hedging, regular monitoring, and building cash reserves. Discover practical strategies for managing volatility.
Flexible and Long-term Funding Solutions
As nonprofits face ongoing uncertainty, they need funding that supports both immediate needs and long-term goals. Flexible and multiyear grants give organizations the stability to respond to change, strengthen their operations, and stay focused on impact. These blogs highlight how lean funders can offer this essential support in strategic and meaningful ways.
- Funding in Uncertain Times: Anchoring Principles for Responsive Philanthropy
Lauren Blitzer, executive director of the Leland Fikes Foundation, draws on her experience funding in areas like reproductive justice and democracy to reflect on how philanthropy can navigate uncertainty. She shares guiding principles that help her foundation stay grounded and responsive in times of rapid change, offering a valuable perspective for funders facing similar challenges. Read the full story. - The Power of Flexibility: Why General Operating Support Matters
In today’s volatile environment, marked by shifting policies, rising costs, and increased demand for services, nonprofits need flexible funding more than ever. General operating support gives organizations the autonomy to allocate resources where they’re needed most, from covering salaries to investing in long-term infrastructure. Explore why flexible funding is essential now. - Using Multiyear Funding to Supercharge Your Grantmaking
As nonprofits navigate complex, long-term challenges, single-year grants often fall short. Multiyear funding offers the consistency needed to plan, retain staff, and build lasting impact. Especially during times of instability, this kind of sustained support reduces administrative burden and allows grantees to move beyond survival mode. See how multiyear funding creates deeper, more durable change.
Streamlining Grantmaking Processes
During times of crisis or uncertainty, the burden of complex grant requirements can pull nonprofits away from their core work. Lean funders are well-positioned to reduce these obstacles, whether by simplifying applications, accepting existing materials, or easing reporting demands. These practices not only save time but also build stronger, more trusting relationships with grantees.
- Simplifying Grant Applications and Reporting for Nonprofits
Lengthy, complex applications and reports often drain nonprofits’ limited time and capacity, especially during periods of heightened demand. This blog shares actionable strategies for streamlining processes, from setting clear expectations to aligning timelines with grantees’ fiscal years. Read how small changes can make a big difference. - Why We Accept Proposals Written for Other Funders
To reduce redundancy and respect the time of nonprofits, the Robert Sterling Clark Foundation accepts proposals that have been prepared for other funders. Lisa Pilar Cowan explains how this approach reduces administrative barriers, fosters stronger relationships, and reflects a deeper level of trust in nonprofit partners. See how one foundation is changing the norm. - Why We Give Grants Even When We Say No
In recognition of the time and energy nonprofits invest in grant applications, the Laird Norton Family Foundation provides small administrative grants to declined applicants in its invite-only process. As Katie Briggs shares, this small gesture can go a long way in honoring nonprofits’ contributions and supporting their sustainability, especially when resources are tight. Read how this practice builds respect and resilience.
Policy and Advocacy: Amplifying Your Voice
In times of rapid change, philanthropy’s role extends beyond grantmaking. Lean funders can be powerful advocates by using their voices, relationships, and flexibility to influence public policy and protect the communities they serve. Even small-scale efforts can drive systemic shifts when aligned with values and grantee priorities.
- Philanthropy’s Responsibility Persists: Staying the Course Amid Change
Exponent Philanthropy CEO Paul D. Daugherty calls on funders to meet this moment with courage and commitment. Amid policy shifts and community challenges, lean funders can act quickly, center community voices, and provide stability through advocacy and support. Explore Paul’s call to action. - Funders and Public Policy: Why Your Voice Matters
Philanthropy’s proximity to community needs gives it unique insight into the real-world impact of legislation. This blog explores how funders can build relationships with policymakers, share what they’re seeing on the ground, and use their influence to shape more equitable policies. Read how funders can take action. - Advocacy: A Crucial Tool for Lean Funders
This blog breaks down how advocacy and lobbying fit within legal boundaries and how even modest efforts, especially when coordinated with grantees, can drive meaningful change. From influencing policy to amplifying community voices, the tools are accessible and impactful. Learn how to start or deepen your advocacy work.
Building Community Resilience and Collaboration
In uncertain times, collaboration isn’t just helpful, it’s essential. By strengthening relationships, fostering trust, and creating space for shared solutions, funders can help communities respond more effectively to evolving challenges. Lean funders, in particular, are well-positioned to convene stakeholders, build social capital, and catalyze collective action.
- Bringing People Together: How Convening Can Make a Big Difference
Convening is a powerful, often underused tool in philanthropy. Lean funders can use their flexibility to bring diverse voices to the table, sparking dialogue, problem-solving, and community-driven solutions. This blog explores how convening strengthens networks and lays the groundwork for lasting progress. Learn how to convene effectively. - Building Bridges: The Power of Social Capital in Grantmaking
Strong networks are critical for nonprofit resilience. Anna Taylor, executive director of The Greater Sum Foundation, shares how funders can build social capital by connecting grantees to new relationships and opportunities. Especially during instability, these connections can help nonprofits thrive. Explore the power of social capital. - Working Collaboratively in Philanthropy
When resources are limited, collaboration magnifies impact. This blog offers practical ways funders can work together through learning networks, shared initiatives, and pooled funding to reduce duplication, share risk, and support grantees more effectively. Read about collaborative approaches. - How Philanthropy Can Help—or Hurt—Right Now
Philanthropy has the power to either ease or add to the burdens nonprofits face. Drawing on her experience with funders and nonprofits nationwide, Adriana Cosgriff identifies common mistakes and shares actionable ways funders can build trust, reduce harm, and show up as true partners. Explore practical strategies for effective philanthropy.
Leading Through Volatility
As nonprofits face mounting pressures, from disappearing federal support to policy changes that threaten charitable giving, funders have a critical role to play. By offering flexible funding, engaging in advocacy, streamlining practices, and strengthening community connections, lean funders can help ensure nonprofits remain strong and responsive. Even small shifts in how funders give can have a big impact on nonprofit stability and community wellbeing.
Join the Conversation: How Are You Adapting?
What’s helping your foundation navigate these challenges? Whether through long-term funding, advocacy, collaboration, or other approaches, your insights can support fellow funders. Share your experience and explore new ideas in our Member Discussion Community.