What do nonprofits need from funders at this moment?

Nonprofit organizations are facing unprecedented challenges under a new administration. In response to the constant pressure, many in the sector have made the case for funders to increase foundation payout rates, streamline processes, foster solidarity across movements, champion nontraditional models of collaboration, and so much more.

Each of these solutions requires multiple strategies. For foundations looking to fund these types of strategies, data we gathered recently at the Center for Effective Philanthropy (CEP) makes clear what nonprofit leaders are asking from funders: more flexible funding, more communication, and true partnership.

Fund flexibly

When we collected data in February for a research snapshot, 70% of the nonprofit leaders we surveyed said the current political climate was having a “generally negative impact” on their ability to carry out their work. Many respondents referenced federal, state, and local funding shifts as contributing to this negative impact. Some leaders also noted that operating in the current environment of great uncertainty not only around federal funding streams but the possibility of reduced individual contributions also impacts staff morale.

One survey respondent noted, “As government policies and economic conditions shift, having the ability to allocate resources where they are needed most—whether for direct client assistance, operational support, or emergency response—ensures we can continue to serve our community effectively.”

So, what do nonprofits need from funders in response to the current environment? Many nonprofit leaders in our survey asked funders to be “flexible in funding [with] fewer restrictions while we navigate the present and future.” And we know that flexible funding works in moments such as this one. When we examine data from before and after the COVID-19 pandemic, we see that foundations stepped up and provided more flexible funding, allowing nonprofits to respond in another moment of dire need. This previous experience sets them up to do so again, quickly and effectively.

Communicate more

We also heard clearly from nonprofit leaders about the need for more communication from their foundation partners. Two-thirds of nonprofits we surveyed reported that none or just a few of their foundation funders had communicated with them about the current political climate through blogs, mass emails, newsletters, or other public means. It was unclear why funders were reticent to communicate; perhaps they were worried about taking risks that might jeopardize their institutions, or maybe they were operating under a set of assumptions that may have made sense in November but now seem worth reconsidering.

However, since our survey data was collected in February, we have seen more public statements from funders, including some announcing they would increase payout rates, including the Northwest Area Foundation, MacArthur Foundation, Robert Wood Johnson Foundation, and others. The survey data suggests nonprofits see increased communications as a step in the right direction. In fact, 77% of respondents said they’d like to receive communications from funders about the impact of the current climate on their work. As one nonprofit leader urged: “Ask how we are doing. Ask what we are concerned about. Give us some sense of where their heads are.” The recent Call to Action for Philanthropy in 2025 (and Beyond) signed by many funders is an example of how some are beginning to stand up more publicly.

Be true partners

Decreases in or uncertainty about funding levels (66%) topped the list of survey respondents’ most pressing concerns related to the current climate, followed by changing priorities of private or government funders (54%). In moments of instability like this one, there is even more of a need for true partnership between foundations and nonprofit partners, not just in funding, but in partnering in new and different ways. For example, 40% of nonprofit leaders listed the well-being and safety of their staff or those they are seeking to help as one of their most pressing concerns. In such an environment, funders and nonprofits may need to seek creative ways of championing nontraditional models of collaboration or creating spaces for conversations that could foster solidarity across movements.

Turbulent times call for different strategies

The survey data suggests that turbulent times call for doing work differently. What nonprofits need from funders now is to do more to fund flexibly, communicate, and be true partners. Will we see a growing wave of funders stepping up with more courage to support their grantee partners in unprecedented ways in the coming weeks? If ever there was a moment that demanded unprecedented action, the nonprofit leaders in the survey seem to say, it is now.

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