Rethinking nonprofit infrastructure for a new era

The nonprofit sector is currently experiencing a period of contraction. In 2023, charitable giving in the United States totaled $557.16 billion in nominal dollars, but after adjusting for inflation, it actually fell by 2.1% from the prior year. Giving by individuals, which accounts for the majority of charitable giving, dropped 2.4% in real terms. That marked the second consecutive year of decline in individual giving, a trend not seen since the Great Recession.

The contraction in giving and the rising bar for effectiveness are not temporary pressures; they are structural realities. Nonprofits today are expected to demonstrate measurable outcomes, higher accountability, and sustainable operations, often with fewer unrestricted dollars. This new landscape demands that organizations rethink how their infrastructure supports both mission delivery and resilience.

While 2024 brought a rebound, with total giving rising to $592.5 billion (a 6.3% increase in nominal dollars, 3.3% after adjusting for inflation), the volatility underscores a new normal: Nonprofits must adapt to unpredictable cycles, shifting donor expectations, and increasing competition for resources.

The case for rethinking nonprofit infrastructure

Most nonprofits were built for a different funding environment; steady growth, multiyear grants, and lower compliance burden. Today’s environment features shorter grant horizons, market-sensitive giving, and higher reporting standards.

At All* Above All, where I serve as president, we’ve seen firsthand how fragile infrastructure can undermine mission delivery. For example, during the pandemic, our coalition partners faced stalled programs and delayed funding because their back-office systems and staffing models weren’t designed for crisis conditions. Strengthening shared operations and financial reserves became essential to keep community work going. The reality is that resilience is not optional; it is central to whether organizations can continue serving communities when resources shrink.

Emerging infrastructure strategies nonprofits are testing

Strengthening organizations through collaboration

• Mergers and alliances. Pooling resources has increasingly become a survival strategy. In the reproductive justice field, several regional groups have merged or formed alliances to share fundraising and communications teams, reducing costs while expanding reach.
• Shared services. From finance to HR and IT, shared back-office operations allow nonprofits to redirect more dollars toward programs. Fiscal sponsors and collaboratives have paved the way, but more groups are formalizing these agreements to gain efficiency and compliance strength.

Rethinking leadership and operations

• Co-leadership models. Executive burnout is real. By distributing leadership, through co-executives or empowered senior teams, organizations can reduce strain on individuals and build collective decision-making structures that are less vulnerable to turnover.

Building financial resilience

• Diversified funding infrastructure. Relying solely on philanthropy is risky because it ties an organization’s stability to factors beyond its control, economic downturns, shifts in donor priorities, and shortened grant cycles can all create sudden funding cliffs. To offset that volatility, many nonprofits are diversifying their revenue structures, blending traditional philanthropy with earned income, membership models, and values-aligned corporate partnerships

Centering staff as mission-critical

• Staff care as infrastructure. The most overlooked strategy is treating staff care as a mission-critical component of nonprofit work. According to a 2023 Nonprofit HR study, nearly 45% of nonprofit employees reported considering leaving the sector due to burnout or lack of advancement opportunities, and turnover remains one of the top three threats to organizational continuity. Retention and well-being are not nice-to-have luxuries; they are what allow organizations to deliver quality services when external conditions fluctuate.

What resilient organizations do differently

From my own experience within national movements and conversations with peers across sectors, a few lessons stand out:

• Build for continuity, not just growth. Whether launching new programs or expanding existing ones, success is often measured by scale, but the real test is whether an organization can maintain quality, staff retention, and service continuity during downturns such as funding gaps, staff shortages, or delays in grant disbursements.
• Operationalize collaboration. Partnerships must be more than ad hoc. They should be formalized, resourced, and built into strategy.
• Treat infrastructure as core to mission. Investments in technology, compliance, and staff development are not overhead, they are prerequisites for impact and adaptability.

Looking toward stronger infrastructure

The contraction in giving and the rising bar for effectiveness are not temporary pressures. They are structural realities. If nonprofits cling to outdated models, they risk leaving communities without vital support.

But if leaders are willing to rethink—and sometimes rebuild—their nonprofit infrastructure, the sector can emerge more resilient, more collaborative, and better equipped for the challenges ahead. Nonprofits have always thrived on creativity and commitment. Pairing that spirit with bold operational strategies is what will sustain our ability to serve communities and drive measurable outcomes in a new era.

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