The Truths 2025 Taught Us: Insights for Your 2026 Fundraising Strategy
Looking Back to Move Forward
As we close out 2025, I want to take a beat to reflect on what has been an unprecedented year for the nonprofit sector. U.S. federal funding freezes, policy reversals, and dramatic shifts in language around social impact work have left many organizations reeling.
But here's what I've learned from working with social impact organizations through this turbulent year: The organizations that not only survived but thrived in 2025 share common characteristics that will serve them well in 2026 and beyond.
I had a conversation early this year with Steve Boland on the Next in Nonprofits podcast about the changes we were seeing (listen here: "Grants and Volatility with Shoshana Grossman-Crist"). Now, I want to wrap up this year by looking back at what happened and, more importantly, what we've learned that will shape successful fundraising strategies going forward.
So what the heck happened this year? And more importantly, what can we learn from it to make 2026 your strongest fundraising year yet?
A Recap of What Happened in 2025
The U.S. Federal Funding Reality
About 30% of US nonprofits— roughly 100,000 organizations —typically receive some portion of the $300 billion in annual U.S. federal funding. In 2025, many of these organizations faced:
Immediate funding freezes and cancellations across agencies including USAID, USDA, National Endowment of the Arts, and many more
New restrictions on language around diversity, equity, and inclusion
Executive Orders to close agencies like USAID and the Minority Business Development Agency
Lowering federal contracting goals for Small Disadvantaged Businesses
What we saw: Organizations that had documented everything— costs associated with scaling down operations, impacts of funding cuts, and compliance with new requirements— were better positioned to navigate the chaos and inspire their other donors to step up further.
Did your organization face federal funding cuts this year? If so, you're definitely not alone. And if you documented everything, this is now part of your powerful fundraising story.
The Cascade Effect
Federal funding cuts didn't just affect direct federal grants. Throughout 2025, we saw the impact cascade through:
State governments that re-grant federal funds
Intermediary organizations that distribute federal money
Grants from private foundations becoming more competitive
This process took longer to impact organizations than direct federal cuts. But by mid-year, the effects were widespread.
Here's what surprised me: The ripple effects were actually more predictable than many organizations expected. If we had had a map of where all federal funds passed through and ultimately reached, we could have anticipated the impacts pretty accurately.
The Immediate Responses That Worked
Organizations that thrived in 2025 generally chose one of two strategic paths immediately:
Path 1: Strategic Language Adaptation
Organizations that wanted to continue pursuing government funding at any level adapted their language strategically:
Instead of: "Diversity, equity, and inclusion"
They used: "Economic mobility," "workforce development," "community resilience"
Instead of: "DEI programming"
They used: "Skills training that increases economic opportunity"
This wasn't about changing missions. It was about strategic communication that kept important work fundable.
Path 2: Values-Aligned Funder Focus
Other organizations decided they wanted to stand up and fight. Instead of adapting their language, they focused entirely on funders whose values aligned with their work as it was and who wanted to fund the fight.
💡 For a smart way to find aligned funders, use this resource: "Steal this prompt to find funders that are perfect for you."
Both paths had a fighting chance of working whenever the path chosen was aligned with the organization’s values. The key was in being intentional about one’s choice and fully committing to it.
How Foundations Stepped Up
While government funding contracted, foundations did step up throughout 2025:
MacArthur Foundation increased giving by $150 million over two years— moving from 5% to 6% of its endowment annually.
Bloomberg Philanthropies stepped up significantly around climate commitments.
The Black Feminist Fund doubled its initial commitment of $16 million to $35 million, allowing the fund to provide eight-year grants to 54 groups around the world.
Countless foundations checked in on grantees throughout the year, often converting their restricted support to unrestricted support, extending deadlines, or offering emergency funds.
And so much more.
Here's what gave me hope: Watching foundations step up so quickly reminded me that there are always people who want to support good work. Sometimes it takes a crisis to mobilize that generosity.
The Trust Factor Proved Crucial
The most important lesson of 2025: Foundations doubled down on organizations they already trusted.
When foundations wanted to help "as much as possible, as quickly as possible," they turned to existing grantees who had already gone through due diligence. This meant:
Organizations with existing foundation relationships saw increased support
Organizations without existing relationships found it much harder to get in the door
The Strategies That Had Already Built Nonprofit Resilience
The thing is that in the midst of federal funding cancellations, the cascading impacts, and foundations doubling down with the current grantees, some organizations were pretty ok. What had they done over the previous years to build that resilience? Here go:
Diversified Revenue Streams
Organizations with multiple funding sources— foundations in different countries, or multiple individual donors, or (and in particular) earned income —were far more resilient. The golden rule became obvious: no single source should represent more than 40% of your budget.
Strong Existing Relationships
Organizations with deep connections to current funders, regular communication beyond required reporting, and board members who could open doors had significant advantages.
Clear, Adaptable Value Propositions
The most successful organizations had compelling stories that illustrated systematic impact. They maintained strong data on outcomes and community change. And many could articulate their impact in multiple ways depending on their audience.
Quick gut check: Can you explain what makes your organization unique in two sentences? If you're struggling with this, you're not alone— but it's definitely something to work on before 2026 kicks into high gear.
💡 For step-by-step guidance on clarifying your unique value, check out: "The first step in grant writing that most organizations skip."
The Additional Actions That Worked
Regardless of if organizations had done those things in the past, they had a chance to respond to the present moment and make the most of it (a bit like the nonprofit sector did when COVID hit). Here are the best actions I saw taken by organizations:
Tapping the Under-Tapped
One of the biggest realizations of 2025 was how much untapped generosity existed in individual giving. Organizations that pivoted quickly to individual donor development found success by:
Being transparent about the funding gaps they were facing
Offering specific ways people could help
Making it easy for supporters to say yes
The insight: Research consistently shows the number one reason people don't give is because they haven't been asked. In 2025, when people could see the need clearly, many organizations found success by simply asking their communities to step up.
When was the last time you directly asked your community for support, or even simply thanked them for their support? If it's been a while, you might be sitting on more potential support than you realize.
Joint Proposals
In recent years, a growing trend has been that funders more and more want to give substantial grants to collaborative efforts. This is part of the growing movement for localization. I’m now seeing organizations more open to developing shared proposals and presenting as coalitions to access funding and to drive more systemic change.
Also, this year I heard more talk of nonprofit mergers than ever before.
Are there organizations in your community doing complementary work? Or organizations in other communities driving the same change you are? 2026 might be the perfect time to explore how you could work together to access larger grants opportunities. (For guidance on building an effective grant writing team, see: "Building a high-performing grants team.")
The Five Truths 2025 Taught Us
Truth #1: Diversification Isn't Optional
If your eggs are in one basket, you're vulnerable. Period. The organizations that weathered 2025 best had multiple funding streams that could support them when one source disappeared and that they already had the expertise in to build out further.
Truth #2: Relationships Reign Supreme
The Chronicle of Philanthropy consistently reports that relationship-based giving outperforms transactional approaches. Build those relationships before you need them. And then keep nurturing them.
Truth #3: Adaptability Is a Core Competency
Language and strategy flexibility kept organizations moving. If you're experimenting with artificial intelligence to make your communications and strategy updates more nimble, check out How I'm using AI tools to lead more effectively.
Truth #4: Mission Clarity Matters More Than Ever
If you can't explain what you do and why it matters in two sentences, you'll struggle. (I shared step-by-step guidance for this in "How to write a mission statement that brings in funding.")
Truth #5: Community Support Is Always Available
Ask clearly. Make it easy to help. As someone who lives in Mexico, I've seen firsthand how after each big earthquake, people mobilize and show up like at no other time. This is the bright spot in the midst of hard moments.
Which of these truths hits home most for your organization? Sometimes the lesson that stings a little is the one we most need to hear.
Your 2026 Fundraising Strategy
So what has this ridiculous year taught us for your 2026 fundraising strategy?
Prioritize Relationship Deepening
Focus on your existing funders first. You've got this— you already have relationships to build on.
Are you wondering how your organization stacks up? Take a quick mental inventory: How many foundation program officers could you call right now for advice, not just money? If that number feels low, relationship-building should be your top priority for 2026.
And if relationship-building is your gap, start here: "Strengthening donor relationships: The key to fundraising success."
Action steps:
Schedule check-ins beyond required reporting
Invite them to see your work in action
Ask about their evolving priorities
—-------
💡 Ready to strengthen your funder relationships and build a resilient fundraising strategy? I help social impact leaders navigate changing funding landscapes while staying true to their mission. Let's talk about your 2026 strategy →
—-------
Build Strategic Flexibility
Develop a couple key versions of your case for support. This isn't about being fake— it's about being strategic.
Action step: Create materials that work for 1. government funders, 2. private foundations, and 3. individual donors.
—-------
💡 Not sure how each material should be different, to truly catch the attention of that donor type? I love guiding you on this and giving you my hands-on support. Let's connect about what you need→
—-------
Invest in Coalition Building
Look for collaboration opportunities. The days of going it alone are over, and that's actually good news.
Action steps:
Identify complementary organizations in your community or in other regions
Explore shared funding opportunities
Develop joint proposals that leverage everyone's strengths
Strengthen Individual Giving
For most organizations, you would be well advised to not overlook your community. Most people want to help, they just need to know how and to feel inspired to do so.
Action steps:
Audit your individual donor program
Develop clear, compelling asks that make the donor feel like a hero
Be specific about the change you can drive with their support
Make giving easy and meaningful
Looking Ahead: What 2026 Holds
What can we expect next year? Based on what we've seen, here are my predictions:
Foundation giving will remain elevated to continue filling big public-sector gaps
Collaboration will continue to be valued as funders look to maximize impact with larger grants that still reach local change agents
Individual giving has the potential to grow where organizations inspire their donors
Adaptability, without losing your core, will remain crucial as the landscape evolves
The good news? You're not starting from scratch. You've learned so much this year (on top of everything you learned during COVID), and that knowledge is going to serve you well.
Your Next Steps for 2026
Assess your 2025 lessons. Which of these were lessons your organization learned? What worked for your organization in 2025, what didn’t and what would you do differently?
Then, based on that, pick one or two of my 2026 strategy recommendations just above. Maybe you want to strengthen your existing funder relationships, maybe you want to explore a new partnership, maybe you want to catalyze your earned income activities. Start with what feels manageable, make it a priority, see what works, and keep iterating.
You've got this. The funding landscape can change quickly, but the need for your work is likely going to persist and maybe even become more urgent.
The question isn't whether there will be funding for your work in 2026— it's whether you'll position yourself to access it using the hard-won lessons of 2025.
You've already survived one of the most challenging years the nonprofit sector has seen in decades. That resilience and adaptability? Those are exactly the qualities that will serve you well in 2026.
Your mission matters. Your work is needed. And with the right strategy, 2026 can be your strongest fundraising year yet.
To stay up-to-date with our fundraising & grant writing tips and tools follow us on LinkedIn and subscribe to our newsletter.
