In today’s unpredictable social, political, and economic climate, philanthropic donors face unique challenges, as well as new opportunities, to positively impact the nonprofit sector. Nonprofits are currently under pressure to deliver essential services with limited resources, which makes strategic, resilient philanthropy a crucial pillar in upholding them.

If you’re looking to maximize the impact of your giving, here are key strategies to consider:

1. Prioritize Stability and Flexibility in Funding

Unrestricted Giving

One of the most powerful ways to support a nonprofit is by giving unrestricted funds. These general operating dollars allow organizations to appropriately allocate resources where they are needed most, whether that be paying staff, upgrading technology, or covering emergency expenses.

Multi-Year Commitments

Federal grants and government funding can be inconsistent, especially with political turnover. Multi-year commitments from donors give nonprofits the financial security to plan ahead, sustain critical services, and invest in long-term goals.

2. Support Underfunded and Deprioritized Causes

Under recent federal policy shifts, areas such as climate change, social justice, and diversity, equity, and inclusion (DEI) have faced decreased funding. Donors can help bridge these gaps by prioritizing organizations that have lost support.

Consider Grassroots Organizations

Small, community-based groups often have limited access to large grants but deliver high-impact, localized solutions. These organizations benefit greatly from individual donors who value deep, community-rooted work.

3. Leverage Donor-Advised Funds (DAFs) Strategically

Donor-Advised Funds remain a powerful giving vehicle. DAFs allow donors to contribute during high-income years, then distribute funds over time for maximum strategic impact.

Collaborative Giving

Pooling DAFs with other donors can increase collective impact, especially when focused on pressing causes or rapid-response needs.

4. Collaborate with Other Funders

Philanthropy is most effective when it’s done collaboratively, rather than in isolation. By partnering with other funders, you can:

• Support systemic change at scale.
• Participate in collective giving initiatives.
• Take advantage of matching grant programs that multiply the value of your contribution.

Engaging in collective giving initiatives supports broad systemic change, particularly in fields affected by policy shifts.

5. Ensure Transparency and Accountability

In an era of increased scrutiny of large foundations and philanthropic institutions, it’s important to support nonprofits that demonstrate clear impact, financial responsibility, and good governance.

6. Use Philanthropy to Advocate for Policy Change

In addition to funding essential programs, your giving can shape systems. Consider supporting policy research, advocacy groups, and litigation funds that work to protect vulnerable communities and safeguard the nonprofit sector from harmful policy changes.

7. Diversify Your Giving Portfolio

Just as you would diversify a financial investment portfolio, it’s wise to spread your philanthropic support across different sectors. This reduces risk and aligns your giving with a range of values and urgent needs.

8. Engage in Local and Community-Based Giving

Local nonprofits and mutual aid networks often respond to needs faster and more effectively than larger institutions. They also have a deep understanding of the communities they serve. By supporting them, you can make a direct and lasting impact at the grassroots level.

9. Stay Adaptable and Keep Learning

The philanthropic landscape is constantly evolving. Stay informed about:

• Changes in tax laws affecting charitable giving.
• Trends in nonprofit needs and innovations.
• Emerging causes that require urgent support.
• Fundraising strategies capable of testing innovative approaches to solving complicated problems.

Engage with nonprofit leaders, attend sector briefings, and be open to adjusting your giving strategy based on new insights.

Maximizing Your Impact

In times of uncertainty, strategic philanthropy is a stabilizing force. By embracing flexible, informed, and community-focused giving practices, donors can help ensure the long-term health and resilience of the nonprofit sector.

I’m happy to connect if you need help creating a strategic giving plan or identifying high-impact organizations to support, so that together we can align your philanthropic goals with actionable strategies that make a real difference.