Nonprofit Funding in 2025: Preparing for Shifts Under a New Federal Administration

As we approach 2025 and the anticipated changes that a new federal administration will bring, nonprofit leaders, grant writers, and fundraisers must be proactive to safeguard and sustain their funding sources. While we cannot predict exactly what will happen, we do know that preparation is critical.

In the face of such uncertainty, it is more important now, than ever, to be as strategic and organized as possible.

Here are essential strategies to consider now to position your organization for 2025 and beyond:

1. Build and Strengthen Relationships with Government Officials

Engagement with local, state, and federal representatives is crucial. Start by reaching out to your local municipal leaders (City and County), state officials, and congressional representatives in both the House and Senate. By fostering relationships with these key figures, your organization can stay informed about potential legislative changes that may impact nonprofit funding. Building these connections early ensures your nonprofit’s voice is heard and your mission is recognized by decision-makers. This can also lead to potential discretionary funding…

2. Federal Discretionary Funding

If you haven’t yet met with your federal representatives, first find out who represents your district. Then contact their staff office, get on their mailing lists, and stay informed on when they will be inviting applications for Congressional Directed Spending or Community Project Funding, known in the past as “earmarks”. Plan to apply for federal discretionary funds when appropriations are invited, typically around February or March 2025. These are competitive, but being prepared and informed about these funding sources can position your nonprofit for this unique potential for revenue.

3. Connect with Past and Current Granting Foundations

Foundations that have supported your organization in the past are valuable allies during uncertain times. Take the time to reconnect with them and share your recent achievements from 2024, highlighting milestones and impactful outcomes. Present your vision for 2025 and beyond, illustrating how their continued support will be pivotal in navigating potential funding shifts. This transparency and proactive communication can reinforce trust and encourage sustained or increased contributions.

Some good news?

The stock market is doing extremely well in 2024, meaning that invested foundation assets experienced significant growth. This translates to more funding being available to charitable organizations in 2025. Remember, private grant-making foundation must disperse a minimum of 5% to charitable organizations each year and that dollar amount is based on the average assets from the year prior.

So, there ALWAYS funding out there!

Act Now for Long-Term Stability. Strengthen relationships, keep your supporters informed, and remember to breath. Talk to your team, plan ahead and know the work you are doing is preventing harm and potentially saving lives.

Margit Brazda Poirier, GPC, M.S. is Owner and CEO of Grants4Good LLC®, a grant writing training and consulting company based in New York. Margit’s passion is public speaking, coaching, and teaching others through her self-paced online course, All About Grant Writing.

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