Abandoned by government. Saved by humanity.

I started writing this in late October out of anxiety and anger at the government’s threat to shut down and I thought of all the ways individuals would be personally affected. I also worried for all the nonprofits that serve people’s needs regardless of their wealth, or lack of it. Because so much work done in the nonprofit sector relies on government support from congress, I worried about many nonprofits’ survival.   

What I have feared most is the erosion of a collective moral commitment to help the poor, sick and vulnerable nationally and in our communities. 

I fear for the loss of basic needs and safety nets for our most vulnerable -for the loss of affordable housing, medical care and healthy food.   Communities, families and individuals rely on nonprofits, almost daily, to provide these basic needs; but the pantries and clinics won’t stay open without funds. And right now, our nonprofits are under intense pressure to meet growing needs with major reductions in federal support. 

And I’m not alone in this fear.

According to the Center for Effective Philanthropy’s State of Nonprofits 2025 report, the most destabilizing effect on nonprofits work has been the 2024 federal election results. Changes in federal, state and local funding are the next biggest concerns affecting nonprofits’ work.

As a result of cancelled contracts, payment delays, and unprecedented challenges to health and welfare policies, many nonprofits are anticipating severe rationing in the coming months and years. To be sure, the nonprofit sector has been struggling for some time, never fully recovering from the pandemic. IRS filings indicate a net decline of 50,000 (mostly small human-services organizations) nonprofits since 2020. More may not survive the shift in policy priorities of our current government.

According to the Nonprofit Finance Fund’s annual State of the Nonprofit Sector Survey, results from over 2,200 nonprofits across the country describes the sector’s existential anxiety. Just over half of nonprofits have less than 3 month’s of cash on hand while 85% expect increased demand for help in 2025.

Optimism

But then I read the results of last week’s (December 2) record-breaking results of the annual GivingTuesday campaign and my hope rebounded.  GivingTuesday in the US alone generated $4.0 billion in donations, an increase of 13% over 2024. Further, more people participated, and more people gave money, goods and volunteer time than last year.

My hope and faith in our country, through the generosity of individuals and organizations who care about communal service and care is buoyed. Just as the idea for GivingTuesday grew out of a radical idea to counterbalance a day traditionally driven by profit, I believe that nonprofits can also think more radically about financial survival.

According to the  World Bank, the US is the 8th or 9th wealthiest country based on GDP per capita while New York City has the most billionaires.  We have the money; we have the compassion.  If government is going to shirk its responsibility to ensure a healthy and productive society, we can and must turn towards individuals and philanthropies to give more –to compel all of us to help fill the gaps -through donated money, goods, time, and advocacy.

How do we do this?

Time to think differently

Resilience requires rethinking revenue models and market reach. Beyond finding more donors, thinking with a fresh perspective with the goal of identifying new strategies, efficiencies and untapped opportunities for partnerships that can be leveraged are critical strategies.

As someone with over 20 years of experience in government and nonprofit financial management and policy analysis, I think it’s time for a paradigm shift. I refuse to accept our government’s challenges without fighting for the welfare of our communities. As founder/principal of Public Good Consulting, I’ve worked with dozens of nonprofits, government agencies and philanthropies creating new programs and financial models that consider change for compliance, viability or changing needs. I’ve also seen what committed nonprofit leaders are capable of, especially in collaboration with their constituents; and my mission is to help nonprofits prioritize and strengthen resources that ensure mission critical work continues.

Nonprofit leaders and staff can start by considering the following questions and key points as they relate to mission and operations.

Stakeholder Alignment – Who benefits from your goods or services: citizens, governments, NGOs, the private sector?  Consider to what extent each constituent group would pay for the benefits you offer? How do you provide value to others directly or indirectly?

Capitalize on Expertise and Excess Capacity - does your nonprofit provide a service or commodity that other organizations may need?   Think of any unoccupied space you maintain. Could you rent it out to other nonprofits for desk, rehearsal or event space?   Does your nonprofit have expertise with excess capacity that it can contract out to others in need -think technology solutions, training, property management?

Scalability – Is your revenue model sustainable as constituent numbers grow?  Can you offer freemium plans with a free option and adds price points as benefits or users increase? Or based on an income sliding scale?

Trust & Transparency – With public goods, credibility is everything. Users and funders must see where their money goes.  A lot of low-cost tools exist that allow nonprofits to describe achievements creatively through compelling stories.  Keep donors, foundations and anyone supporting your work informed with regular and easy to access updates.