Finanacial Planning

Borgert: Nonprofits are operating in a much less predictable funding environment than they were a few years ago. Changes in federal, state, and local funding policies have created uncertainty—especially for organizations that have traditionally relied on government contracts or grants. As those funding sources have declined, many nonprofits have had to scale back programs, pause hiring, and delay growth plans.

Borgert: These days, it’s wise to diversify the channels of donor development. Organizations are expanding individual giving, strengthening relationships with private foundations, pursuing corporate partnerships, and growing invested assets. The goal is to create a balanced financial model that will withstand changes in public funding.

Borgert: There is. Recent data shows that charitable giving is on the rise. In June 2025, the Giving USA Foundation, The Giving Institute, and the IU Lilly Family School of Philanthropy reported that charitable giving had increased by 6.3% in 2024 over the prior year. That tells us that donors still believe strongly in nonprofit missions. Philanthropy may not fully replace public funding, but the growth in giving shows there’s opportunity for organizations that invest in building strong donor relationships.

Borgert: That’s simply a practical business strategy. Nonprofits are sharing fundraising strategies, governance practices, and operational resources to reduce costs and improve efficiency. Some are exploring shared services like joint back-office operations or IT support. Others are submitting collaborative grant proposals that demonstrate collective impact. In a tighter funding environment, working together helps organizations maintain services while using resources more efficiently.

Borgert: Advocacy is critical. Nonprofit leaders are working together to educate policymakers and philanthropic partners about how funding decisions affect communities. These conversations help decision-makers better understand local needs and the ways that nonprofits fill them.

Borgert: When a nonprofit’s leaders are busy managing day-to-day operations, it can be hard to focus on long-term strategy. Experienced outside advisors can bring perspective and specialized expertise, especially around financial planning, collaboration opportunities, and governance practices. They can help organizations identify efficiencies and build sustainable strategies that extend impact while conserving resources.

Borgert: Advisors can help nonprofits approach their investment portfolios more strategically. That might mean developing investment policies, clarifying risk tolerance and spending needs, or informing decisions through capital markets research. They may model different asset allocation scenarios, so boards can understand trade-offs between risk and return. They can help construct diversified and mission-aligned portfolios, assist with selecting investment managers, monitor performance—even provide financial education.

Borgert:It’s no secret that the landscape is changing. Organizations that diversify funding, strengthen partnerships, and plan for the long term are positioning themselves to weather the current uncertainty—and emerge stronger.