Philanthropy’s Responsibility Persists: Staying the Course Amid Change 

Recent executive orders and policy shifts have created uncertainty across the nonprofit sector, leaving many organizations grappling with potential funding cuts and operational disruptions. While some orders have been rescinded, new challenges and changes will continue to emerge in the weeks and months ahead.  In times like these, philanthropy plays a critical role in providing stability, advocacy, and leadership. Lean funders, in particular, are well positioned to stay engaged, act quickly, and amplify the voices of those most affected. 

At Exponent Philanthropy, we believe that transformative philanthropy remains constant—even in the face of change. Guided by our vision of transformed communities through informed giving, effective philanthropy centers the needs of all people to foster Catalytic Leadership. It’s not a trend; it’s a mindset and a practice. This is not the moment to retreat but rather to step forward with intention and resolve. Here’s how funders can stay the course amid uncertainty.  

1. Proactively Reach Out to Your Community Partners

Your grantees and community partners are feeling the weight of these changes across all areas from economic development to education to early childhood and more. Many are overwhelmed with questions about their funding stability and future programming. Although the recent funding freeze has been rescinded, many nonprofit partners remain concerned and uncertain about what lies ahead. Rather than waiting for them to reach out, take the initiative to check in. A simple phone call or email goes a long way in providing reassurance and uncovering concerns. 

What You Can Do: 

• Contact grantees to ask how they are doing and what challenges they face. 
• Identify ways to support them beyond financial resources. 
• Encourage honest conversations about their greatest concerns and uncertainties. 

In uncertain times, listening to communities is essential. Prioritizing open dialogue ensures that the voices of those most affected guide funding decisions. 

 2. Advocate on Behalf of Your Partners

As funders, you have the ability—and the responsibility—to advocate for your community partners. Many nonprofits are constrained in how they engage with policymakers, but foundations can play a critical role in public education and awareness-building. Advocacy is not about taking a political stance; it’s about ensuring that decision-makers understand the real impact of funding cuts and policy shifts on vulnerable communities. As funders, you have firsthand knowledge of your partners’ efforts and your community’s needs. 

How to Advocate Effectively: 

• Use Exponent Philanthropy’s Advocacy Field Guide to navigate permissible advocacy activities. 
• Reach out to policymakers at the federal, state, and local levels to inform them of the challenges these policy changes can create on the ground.  
• Frame discussions in apolitical terms, focusing on community needs rather than policy positions. Highlight that state and federal funding represents essential economic investments and that reductions can harm local economies and workforce development.   
• Share data, stories, and firsthand accounts from grantees to illustrate the impact of funding reductions. This Independent Sector resource provides a comprehensive national and state-by-state overview of the nonprofit landscape: Nonprofit State Profiles.   
  

3. Identify Opportunities to Provide Additional Support

 In times of change and crisis, philanthropy must be both flexible and strategic. Many nonprofits are facing financial uncertainty, legal risks, and increased scrutiny, making it critical for funders to provide proactive and adaptive support beyond traditional grantmaking. 

Ways to Offer Support:

• Provide unrestricted and emergency funding. Flexible funding may help with legal fees, security measures, or other immediate needs. 
• Help strengthen financial planning. Grantees may need to explore contingency plans or alternative funding structures (e.g., intermediary organizations). 
• Support digital security. Organizations handling sensitive information may benefit from encrypted communication tools or security audits. 
• Review legal risks. Funders can connect grantees with legal experts to review compliance strategies and data retention policies.
  

4. Strengthen Collaboration and Knowledge Sharing

No funder operates in isolation, and collective action can drive greater impact. By engaging with fellow funders, nonprofit leaders, and advocacy groups, you can amplify effective strategies, share lessons learned, and build a stronger philanthropic network. 

Ways to Collaborate More Effectively: 

• Join forces with other funders to pool resources, share insights, and enhance nonprofit resilience. 
• Leverage philanthropic networks, such as Exponent Philanthropy’s membership community, to exchange ideas and strategies. 
• Participate in peer learning forums to discuss best practices in crisis response. 
• Share real-time updates on emerging challenges and successful interventions. 
• Encourage open dialogue among funders, nonprofits, and policymakers to align efforts. 

Philanthropy as a Stabilizing Force 

Despite ongoing uncertainties, the principles of effective philanthropy remain unchanged. Lean funders can continue to lead with: 

• Centering Values in Decision-Making – Stay grounded in your foundation’s mission and values to guide strategic decisions.  
• Prioritizing Equity-Centered Philanthropy – Simplify application and reporting processes, offer multi-year funding, and prioritize unrestricted grants.  
• Emphasizing Long-Term Impact – Balance immediate relief with investments that address root causes and create sustainable change. 

Lean funders have always been at the forefront of agile, responsive philanthropy. During this period of uncertainty, your role is more important than ever. Exponent Philanthropy will continue to monitor developments and provide guidance, but above all, remember: transformative philanthropy endures. Let’s stay the course—together. 

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About the Author

Paul D. Daugherty is the CEO of Exponent Philanthropy, the country’s largest association of funders and the only one dedicated to serving foundations, philanthropic families, and individual donors who are lean, but have a mighty impact. As someone who has served in different philanthropic roles for nearly 25 years, Paul recognizes the influence and importance of funders, foundations, and private giving of all sizes.

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