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Three Tips for Nonprofits Navigating Tough Times

It’s no secret that nonprofits are facing mounting challenges. Inflation is raising operating costs, pandemic-era relief funds have run out, and the demand for services shows no signs of slowing down. Even in this environment, nonprofits in our community continue to find ways to stay resilient, engage donors, and plan for the future. At the community foundation, we’re proud to walk alongside these organizations as they adapt and thrive. Here are three strategies that are working especially well.

1. Focus on Financial Basics

Strong financial practices are always important, but in challenging times they become critical. Nonprofits are strengthening cash flow management, increasing transparency, and improving reporting to build trust with stakeholders. Many organizations are also leaning into donor communications about these fundamentals. For example, if your nonprofit has an endowment managed by the community foundation, highlighting that stewardship can give donors greater confidence in your long-term stability.

2. Stay Innovative

While it may be tempting to hunker down, economic challenges can be a catalyst for innovation. Nonprofits are streamlining operations, adopting new technologies, and rethinking traditional service models to improve efficiency and impact. The community foundation can support these efforts, particularly when it comes to receiving gifts of noncash assets. By serving as a back office for “alternative” donations, the foundation can make it easier for your organization to accept contributions beyond cash.

3. Cultivate Current Donors

Building strong relationships with existing donors is one of the best ways to weather tough times. While you also want to attract new supporters, focusing on those who already believe in your mission can pay long-term dividends. Recurring donations provide reliable funding and are a sign of donor loyalty. In fact, recurring donors are far more likely to stay engaged over the years compared to one-time givers. Deepening these relationships also opens the door to meaningful conversations about legacy and endowment giving.

Staying the Course

Tough times will come and go, but the strength of the nonprofit sector lies in its resilience and adaptability. If your organization needs a sounding board or a partner in navigating these challenges, the community foundation is here to help. Let’s work together to keep your mission strong, today and into the future.