In today’s uncertain climate, many nonprofit leaders face a pressing challenge: preparing for a future where public funding dwindles and private giving falls short of bridging the gap. With over 100,000 nonprofits relying on $303 billion in government grants, the ripple effect of cutbacks is already being felt.[1]
From grassroots organizations to major research institutions, the challenge is real. But for organizations committed to equity, there’s an added imperative: putting sustainability at the center of both their programs—and marginalized communities they serve.
How can nonprofits adapt and thrive? Here are three essential strategies every nonprofit leader can activate now to create a more financially resilient organization.
1. Understand the Landscape: Diversifying Fundraising Is Crucial
Government grants aren’t just “nice to have.” For more than 35,000 nonprofits, public funds make up over half their budgets.[2] And the reach goes beyond federal dollars. Many state and local contracts—especially those tied to healthcare, housing, and social services—are funded with pass-through federal money. When the top of the pipeline slows, the rest dries up fast.
The facts are sobering. Even if every private foundation in the country increased its giving dramatically, it still wouldn’t make up the shortfall. According to Candid/Guidestar, private foundations would have to step up their grantmaking by 282%—a leap that’s neither realistic nor sustainable.[3]
For organizations serving marginalized populations, the stakes are especially high. These nonprofits are often closer to the ground and more reliant on time-limited, restricted funding. And with DEI initiatives facing growing political backlash, even mission-aligned funding streams can become more precarious.
Where to start? Fiduciaries are diversifying fundraising across categories. Giving USA’s latest report notes that individuals account for 75% of US charitable giving, including gifts by bequest.[4] And since 90% of wealth is held in noncash assets, noncash fundraising has moved into the mainstream.
To dive deeper into the universe of untapped, latent philanthropic capital, check out these resources below:
- Doing More with Less in Times of Challenge
- Philanthropy’s Meaningful Middle: Good Practices for the Middle Tier-Donor
2. Strengthen Your Reserves: Plan for the Long Game
Before you can plan for the future, you need a clear picture of where you currently stand. That begins with quantifying the full scope of government funding in your revenue mix—and what losing it might mean.
When public funding is in flux, cash reserves become your lifeline—but how much is too much? Some organizations target three to six months of operating expenses; others build longer runways based on their grant cycles and fundraising timelines. What’s critical is to tie your reserve goal to a deliberate strategy, not just a percentage pulled from a benchmark report.
Beyond size, reserves should also be invested wisely. Given today’s inflation and market dynamics, leaving large reserves in low-interest accounts can erode value over time. Many nonprofits are exploring tiered liquidity strategies—balancing immediate cash needs with longer-term reserve investments to maximize both access and growth.
3. Strengthen Your Board: Build Nimble Financial Governance Focused on the Future
Resilience isn’t built in isolation. It requires leadership alignment—especially between the executive team and the board.
In times of change, board members must shift from passive stewards to active strategic partners. That means:
- Each board member presents some piece of a solution
- The growth of your investment policy, including reserves management, becomes a primary focus of your strategic plan
- The board and staff have the education, tools, and resources to lead the transition as you diversify fundraising beyond cash
Resilience isn’t just about bouncing back; it makes growth possible. When leaders trust that their organization can withstand disruption, they’re more willing to try new things, partner with others, and expand their reach.
That includes engaging board members with lived experience, who understand the consequences of interrupted services. And ensuring that financial plans reflect the full scope of service delivery—including overhead, workforce development, and inflation-adjusted compensation.
For more on strengthening your board, explore the resources below:
Looking Ahead: From Fragile to Future-Ready
Strategic resilience isn’t about weathering the storm—it’s about designing a vessel that can sail through it. Whether your organization is rebalancing its revenue streams, right-sizing its reserves, or building stronger financial governance, the goal is the same: to protect your mission from volatility and lead with confidence through uncertainty.
There’s no single playbook for turbulent times. But there is a mindset—and a strategy—that can help your organization stand stronger tomorrow than it does today. It begins by turning uncertainty into clarity, and planning for what’s next with courage, creativity, and discipline.
Need a sounding board? Your Bernstein wealth advisor can help your organization become more resilient.
- Marisa Swystun
- Director, Social Sector Specialist—Foundation and Institutional Advisory
- James Thompson
- Senior National Director—Diverse and Multicultural Wealth Segments
[1] Source: How Reliant Are Nonprofits on Government Grants; Candid/Guidestar, 2025. Filings are based on those most recently filed, the majority of which are from 2023 or 2022.
[2] Ibid.
[3] Ibid.