Impact on Nonprofit Funding

Dear philanthropists, you need to start funding core operations in nonprofits. One of the most problematic things I’ve heard in the philanthropic space is that “no donor will want to fund operations.” Ugh. This gives me the ick. It should not be something we ask nonprofit leaders to work around. It should be a funding criterion that philanthropists actively CHANGE t to serve what activists and nonprofit teams truly need. Operations (from organizational development, HR and finance, to strategy planning, communication and fundraising) ARE the backbone of how social justice is literally PUT IN ACTION. Refusing to fund operations is extremely anti-feminist and perpetuates power imbalances. It reminds me of a system that still refuses to see domestic or caregiving labor as labor that should be paid. Domestic and caregiving (informal and formal) professionals, much like operation professionals (often women!!) remain invisible, often thankless, and terribly undervalued, but they are essential for the wellbeing, sustainability and flourishing of communities and organizations they serve. Would it sound okay if a philanthropist who also supports feminist or social justice causes claimed that domestic or caregiving labor is unworthy of fair monetary remuneration? If you, too, believe that the answer is no, well, it’s time to be louder about funding nonprofit operations! The truth is that without operations, no program nor activism can develop sustainably and scale in the long term. Operational capacity is foundational in social justice efforts and, therefore, a real feminist issue.   People with money privilege who want to do good need to get on board with this and support it, and stop letting the ego get in the way of their funding agendas (apparently, funding operations does not sound “cool” or “prestigious” enough in the philanthropy bubble…). The truth is that when philanthropy fails to invest in nonprofits' impact engines, it undermines the core impact that leaders and activists are trying to achieve. Philanthropists, if you want to truly serve communities and do your part in contributing to systemic change, this is your opportunity to put the money where the real needs of frontline leaders and activists are.

Philanthropy’s irony: funding inequality unequally. The data are damning. 🙅🏽 Local and national NGOs receive just 0.4% of all international aid. ♀️ Only one in 100 gender equality dollars goes to feminist organizations. ✊🏾 Black-led nonprofits hold 76% fewer unrestricted assets than white-led counterparts. 🌍 5.2% of U.S. foundation grants to Sub-Saharan Africa go to African-led organizations. 🌱 Half of climate change philanthropy goes to just 20 orgs — 90% white-led, 80% male-led. 🫶🏾 Endowments at BIPOC-led orgs are 4x smaller than at white-led orgs. ⛑️ Refugee-run organizations are granted less than 1% of humanitarian aid. 🤷🏾♀️ Indigenous Peoples are 6.2% of the global population, but get just 0.4% of U.S. and 0.5% of Australian philanthropy. And on and on. “To sum it up: when it comes to getting or giving access to money, white men are usually in charge, and everyone else has to be twice as good (or more) to get half as much (or less),” says Edgar Villanueva. That’s why I say — Fighting one injustice (global inequality)... by perpetuating another injustice (keeping local, BIPOC, feminist, refugee, and Indigenous leaders in the #nonprofit starvation cycle)... 𝙞𝙨 𝙣𝙤𝙩 𝙟𝙪𝙨𝙩𝙞𝙘𝙚. Decolonizing wealth? Years of talk. Localization? Decades discussed. Gender equality? Centuries old. Racial reckoning? Since 2020. So how do we flip the script on this funding disparity? It isn’t rocket science or bureaucratic gymnastics. We’re not awaiting a tech unicorn, policy overhaul, or think tank blueprint. The fix is clear. Fund locally-led nonprofits. Fund BIPOC-led nonprofits. Fund refugee-led nonprofits. Fund feminist-led nonprofits. Fund Indigenous-led nonprofits. The worthy organizations are there. The worthy leaders are there. The worthy impact is there. “There is power in proximity. Shifting our giving… is not only more just – it is more effective,” said Katie Bunten-Wamaru and Dedo N. Baranshamaje. “Grassroots organisations are consistently delivering impact at the frontlines — without the benefit of frontline funding.” The money is also there. “Foundations’ endowments currently account for well over $1 trillion, while about $160 billion more sits in donor-advised funds,” says Philip Rojc. “... wealth inequality continues to skyrocket as the fortunes of the very rich climb over the long term.” This is also a call to arms for #brand builders and storytellers. Build the brands of these nonprofits. Ensure they’re too compelling to ignore, too loud to silence, and too fundable to underfund. And keep this new narrative alive. Put heat on the gatekeepers of #philanthropy. Because this funding gap is a justice gap. So comment and repost below to be a part of the change. Let’s close the gap together. 💪🏽💛 ________________________________ If you enjoyed this daily brand insight: 1. Follow Kevin L. Brown to maximize your funding 2. Click the 🔔 to get notified about new posts 3. Engage below 👇🏽

The nonprofit sector is in the middle of a crisis. Nearly 29,000 nonprofit jobs were cut in 2025, a more than 400% increase over the prior year. This is particularly alarming because nonprofits employ nearly 13 million people, about 10% of the private workforce and more than the entire manufacturing sector. When the nonprofit sector destabilizes, the impact isn’t just felt on the organizations themselves, it ripples out into the communities those organizations serve. This destabilization is almost entirely driven by financial instability. Federal grants make up roughly a third of nonprofit revenue, and freezes and cuts over the past year have destabilized already fragile and tight budgets. At the same time, changes to the tax code under the (so-called) One Big Beautiful Bill Act have reduced incentives for charitable giving, especially for corporations and middle-income donors who no longer itemize. So what does this actually mean? For nonprofits: You can’t plan, staff, or scale the way you used to. Sustainability now requires ruthless clarity about what work is essential, what capacity is real, and what growth narratives and goals are no longer relevant or realistic. For funders: Pulling back doesn’t just “tighten belts,” it directly cuts services and jobs. Multi-year, flexible funding is needed to create greater stability and allow for stronger planning. For boards: This is a true governance moment. Financial oversight, scenario planning, and hard tradeoffs are now core fiduciary responsibilities. For employees: Layoffs aren’t a reflection of your value, they’re the unfortunate outcome of structural instability. If you’ve been laid off, make sure to collect your unemployment (if it’s available to you), don’t feel bad asking others for help, and lean into your network for support. If you haven’t been laid off, prepare for the possibility that it could happen, and take advantage of all of the benefits your organization offers to you (e.g. professional development funds that can help you upskill for the future) while you do so. For job seekers: The market is crowded, unpredictable, and fast-moving. Work your network, talk to everyone, don’t self-select out of roles you’re interested in and want to apply for, and find ways to prioritize and sustain your mental health in your search.

💡 CSR Funding in India (2025): Why Most NGOs Fail — And How to Win Indian companies spent ₹17,967 crore on CSR in FY 2023–24 (↑16% YoY). Yet, thousands of NGOs with real impact still struggle to access these funds. Why? Because CSR funding is not charity — it is compliance-driven, outcome-oriented capital. ❗ The gap is not impact. 👉 The gap is strategy, positioning, and pitching. After working closely with NGOs, corporates, and government systems, here’s what actually moves CSR decisions 👇 📌 What Corporates Fund ✔ Schedule VII–aligned projects ✔ Measurable outcomes linked to SDGs ✔ Strong governance & audited financials ✔ Brand visibility, employee engagement, long-term partnership potential 📂 Minimum Eligibility (Non-Negotiable) • CSR-1 registration • 12A & 80G approvals • Transparent budgets and reporting 🎯 What a Winning CSR Pitch Looks Like 1️⃣ Clear problem backed by data + human story 2️⃣ Solution with scalability 3️⃣ Impact metrics (baseline → outcome) 4️⃣ Clean budget & governance 5️⃣ Clear ask: ₹ amount + timeline 🚫 Common NGO Mistakes ❌ Generic proposals ❌ No clarity on funding ask ❌ Overpromising impact ❌ Weak follow-ups 👉 Key Insight: Corporates are mandated to spend CSR funds. If your NGO brings credibility, clarity, and outcomes — you are not asking for money. You are offering a solution. #CSRIndia #NGOFunding #CSR2025 #SocialImpact #NGOPartnerships #NonprofitLeadership

New data on giving suggests it’s getting even harder for nonprofits to access the funding they need to scale. Global giving is under pressure. In the UK, the share of people donating has dropped from ~60% to ~50%, with total donations falling by ~£1.4bn. In the US, giving is increasingly concentrated among wealthy donors and large gifts. Meanwhile at the institutional level, ODA is declining and philanthropic funding is concentrating among fewer, larger funders. What does this mean? 👉 Fewer small donors 👉 More concentrated large funding 👉 Greater emphasis on proven, scaled solutions, ie ‘big bets’. And of course, the impact sector still loves innovation, so we’ve built plenty of funding pathways for early-stage ideas. 𝐒𝐨 𝐰𝐡𝐚𝐭 𝐡𝐚𝐩𝐩𝐞𝐧𝐬 𝐭𝐨 𝐭𝐡𝐞 𝐨𝐫𝐠𝐚𝐧𝐢𝐬𝐚𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐦𝐢𝐝𝐝𝐥𝐞? The nonprofits with proven models, ready to scale - but who need flexible, multi-year funding to get there. The ‘missing middle’ isn’t a new problem, but I believe it’s becoming even harder to bridge. If fewer organisations can access the capital they need to scale, then: 👉 fewer solutions reach the people who need them most 👉 we risk continuing to generate new ideas without ever scaling the ones that work 👉 and we hollow out the very pipeline that produces the big bets funders increasingly want to back 𝐈𝐟 𝐰𝐞 𝐰𝐚𝐧𝐭 𝐦𝐨𝐫𝐞 𝐬𝐜𝐚𝐥𝐚𝐛𝐥𝐞 𝐬𝐨𝐥𝐮𝐭𝐢𝐨𝐧𝐬, 𝐰𝐞 𝐧𝐞𝐞𝐝 𝐭𝐨 𝐠𝐞𝐭 𝐛𝐞𝐭𝐭𝐞𝐫 𝐚𝐭 𝐟𝐮𝐧𝐝𝐢𝐧𝐠 𝐭𝐡𝐞 𝐣𝐨𝐮𝐫𝐧𝐞𝐲 𝐭𝐨 𝐬𝐜𝐚𝐥𝐞, 𝐧𝐨𝐭 𝐣𝐮𝐬𝐭 𝐭𝐡𝐞 𝐛𝐞𝐠𝐢𝐧𝐧𝐢𝐧𝐠 𝐨𝐫 𝐭𝐡𝐞 𝐞𝐧𝐝.

Nonprofits are not okay. 😬 That's not my framing. That's coming from inside the sector itself. At PEAK Grantmaking in St. Louis last week, the term I heard more than any other was "nonprofit fragility," and the funders using it are not being dramatic. They're being accurate. The numbers tell the story. One in five nonprofits lost government funding outright in the first half of 2025. Another quarter experienced delays or freezes. Meanwhile, 85% expect service demand to keep climbing, and more than a third ended 2024 already running a deficit. Government funding to the sector runs roughly three times what all US foundations give annually, so the idea that private philanthropy fills this gap is, respectfully, a fantasy. What makes fragility dangerous is how it compounds. A funding cut reduces budget. The next disruption hits harder. Hard landings drive staff out. And a depleted team shows up to serve a community that needs more from them than ever. That's not a funding problem, it’s a structural one. Angela F. Williams, JD, M.Div of United Way said it plainly – our systems are not designed for resilience. They're brittle. The grantmaking community is saying out loud what has been true for a while: unrestricted funding, multi-year grants, and simpler application and reporting requirements are not nice-to-haves. For a lot of grantees right now, they're the difference between staying open and not. At Submittable, my coworkers and I think about the friction on both sides of a grant. When organizations are fragile, every hour spent on an application or compliance report is an hour not spent on mission. Reducing that drag isn't a feature. Right now it's a form of life support.

Let me tell you about the organizations everyone forgets: Nonprofits with budgets under $250,000. Just 28% can pay all full-time staff a living wage. Only 12% offer health insurance. Only 10% offer retirement contributions. These aren't "small" organizations in impact. They're the food pantry serving 500 families, the arts program keeping kids off the streets, the grassroots organizers fighting for justice, the community center that's the neighborhood's heartbeat They're small in resources. But they're GIANT in what they're expected to deliver. And the funding system is stacked against them: ❌ Major foundations have budget minimums they don't meet ❌ Government contracts require infrastructure they don't have ❌ Individual donors gravitate toward big names ❌ They can't afford the grant writers who could help them grow So they run on volunteer labor. Executive directors doing five jobs. Board members cleaning bathrooms. Zero margin for error. The painful irony is that these organizations are often deeply rooted in their communities. They ARE the community. They have the trust and relationships that money can't buy. But trust doesn't pay rent. Relationships don't cover health insurance. If we want community-led, community-rooted organizations to survive, we need: ✅Funders willing to fund small ✅Technical assistance that's actually accessible ✅Simplified compliance requirements ✅Coalition funding models that share resources ✅Capacity building that meets them where they are Small-budget nonprofit leaders: You're not too small to matter. You're exactly the right size to transform your community. What support would make the biggest difference for you right now? #SmallNonprofits #GrassrootsOrganizations #CommunityLed #CapacityBuilding

Nonprofits: 4 Trends You CAN’T Ignore in 2026 (or You’ll Feel It in Your Budget): The next year won’t reward good intentions. It will reward organizations that adjust early. Here’s what’s already reshaping nonprofit growth, funding, and survival and the exact questions boards should be asking now. 1. Individual Giving Is separating Fast The middle is shrinking. High-capacity donors are consolidating influence. • Donors giving $1,000+ now account for over 75% of individual giving dollars • Donor counts continue to decline, even as total dollars stay flat or rise • Retention rates for first-time donors remain below 25% Do your top 10% donors fund at least 60% of revenue? Are you designing experiences for fewer donors giving more, or still chasing volume? 2. Corporate Dollars Are Shifting From Philanthropy to Partnership CSR budgets are tightening. ROI expectations are rising. • Over 60% of corporate giving now flows through partnerships tied to brand, workforce, or ESG goals • One strategic partner often replaces 10–20 small sponsors • Companies expect measurable outcomes within 12 months, not 3 years Can you clearly articulate what a company gains in the first 90 days? Are partnerships treated as revenue channels or one-off donations? 3. Boards Are Becoming Financially Intolerant Sentiment is changing quietly but decisively. • Median nonprofit cash reserves remain under 6 months • Organizations with under 3 months runway face a 2x higher closure risk • Boards increasingly demand scenario planning, not just annual budgets Could you operate through a 20–30% revenue drop without layoffs? Do board members actually understand your funding concentration risk? 4. Attention Is the New Scarcity, Not Funding The organizations winning in 2026 are visible before they ask. • Nonprofits with consistent executive presence on LinkedIn raise 30–40% more from individual donors • Foundations increasingly vet leadership visibility before first meetings • Trust is being built publicly before it’s built privately Is your leadership team known outside your existing donor base? Could a stranger understand your impact in 60 seconds online? 2026 will not be kind to organizations running on momentum alone. It will reward clarity, concentration, and courage to change earlier than feels comfortable. With purpose and impact, Mario

The biggest revenue mistake I see nonprofits make? Building their entire survival plan around grants and donations. It looks sustainable at first. Until it is not. Here is the pattern I have watched too many organizations repeat: Chase grants year after year Reshape programs to match funder priorities Celebrate short term wins Scramble when funding cycles shift or dry up Suddenly, strong programs stall. Staff burn out. Impact shrinks. Not because the mission is weak, but because the model is. Here is the mindset shift more nonprofits need to understand: Nonprofit is simply a tax designation. It is not a business model. Like any organization, nonprofits still need predictable and self generated revenue to survive and grow. The ones that last do not rely only on fundraising. They intentionally build earned income alongside grants and donations. And it works. Some practical strategies I have seen succeed at both local and national levels: • Fee for service programs. Offer workshops, trainings, therapy, or specialized services aligned with your mission • Social enterprises. Launch products or services that generate revenue while advancing impact • Asset rentals. Monetize unused space, vehicles, kitchens, equipment, or meeting rooms during off hours • Consulting. Package your expertise and advise governments, companies, or peer organizations • Cause related sales. Sell branded merchandise or digital products that strengthen community engagement • Licensing curriculum and intellectual property. Monetize your tools, frameworks, and educational resources Organizations such as YMCA, Goodwill, Habitat for Humanity ReStore, and others have proven this model for years. The benefits go beyond revenue: • Greater financial stability • Less dependency on unpredictable funding cycles • Stronger partnerships • More autonomy to focus on impact instead of survival Too many nonprofits think about diversifying only when things go wrong. By then, it is reactive. Sustainability should be built early and intentionally, not as an emergency plan. PS: If your organization can only operate when the next grant lands, that is not a strategy. That is a countdown. Build revenue streams that keep your mission moving with or without external funding. #NonprofitLeadership, #NonprofitStrategy, #EarnedIncome, #RevenueDiversification, #NonprofitSustainability, #SocialImpact, #CapacityBuilding, #FinancialSustainability, #MissionDriven, #ThoughtLeadership

"From Charity to Strategy: Is Your Organization Ready for CSR 2.0?" 1️⃣ The Evolution of Corporate Social Responsibility The corporate giving landscape is transforming! Gone are the days when CSR meant writing a cheque and walking away. Today's strategic CSR is about creating SHARED VALUE where business objectives align with meaningful social impact. Companies seeking authentic partnerships are looking for: ✅ Impact measurement frameworks that demonstrate ROI ✅ Long-term relationships vs. one-off donations ✅ Integration with core business competencies Is your organization positioned as a strategic partner or still pitching for charity? The difference will determine your funding success in 2025! 2️⃣ Grant Writing: What Funders ACTUALLY Want After reviewing 50+ successful grant applications last quarter, I've noticed a critical shift in what wins funding: The most successful proposals aren't just well-written—they're strategically designed to address the funder's SPECIFIC impact goals. Three elements that secured funding every time: ✅ Clear theory of change with measurable outcomes ✅ Innovative, scalable implementation approach ✅ Transparent reporting mechanisms Are you still using generic templates or crafting funder-specific proposals? The funding landscape rewards customization! 3️⃣ The ESG-CSR Connection: What Every Nonprofit Needs to Understand ESG metrics are reshaping corporate giving priorities, creating both challenges AND opportunities for the social sector. Smart nonprofits are aligning their impact models with corporate ESG frameworks: ✅ Environmental metrics that quantify sustainability impact ✅ Social indicators that demonstrate community transformation ✅ Governance structures that ensure accountability Is your organization speaking the language of ESG? Those who adapt will unlock new corporate funding streams in today's metrics-driven landscape. 4️⃣ Data Visualization: The Secret Weapon of Successful Fundraising The most compelling grant applications don't just tell—they SHOW impact through strategic data visualization. When we redesigned our impact reporting with visual dashboards: ✅ Donor engagement increased 47% ✅ Renewal rates jumped 38% ✅ Average grant size grew by 22% Are your impact stories buried in text or brought to life through visual data storytelling? The difference can transform your funding outcomes! Follow Bhagyashree Lodha for more such insights