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Philanthropy This Week

This newsletter featured a roundup of the most important news, opinion, tools, and resources of the week. The last issue ran on May 31, 2025 and was replaced by Need to Know This Week.

March 29, 2025
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From: Marilyn Dickey

Subject: Nonprofit Finances in the Trump Era: Coping and Hope

Workers with World Relief set up a food distribution at the Don Bosco camp for internally-displaced Congolese, in the Democratic Republic of Congo in 2024. World Relief has been responding to humanitarian crises in DR Congo since 2001.
Photo by Bienfait Amani, courtesy of World Relief

Good morning.

With government funds for nonprofits frozen, canceled, restarted, and/or delayed, budgeting is more of a wild card than ever. To cope, nonprofits are creating multiple budgets for different scenarios, reports Eden Stiffman.

For some charities, the situation is dire: Half of the respondents to a Foraker Group survey rely on federal funds for at least 50 percent of their budgets. And more than 10 percent said if the funding freeze continues, they’ll have to close their doors. Many of those organizations provide essential health and social services.

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Workers with World Relief set up a food distribution at the Don Bosco camp for internally-displaced Congolese, in the Democratic Republic of Congo in 2024. World Relief has been responding to humanitarian crises in DR Congo since 2001.
Photo by Bienfait Amani, courtesy of World Relief

Good morning.

With government funds for nonprofits frozen, canceled, restarted, and/or delayed, budgeting is more of a wild card than ever. To cope, nonprofits are creating multiple budgets for different scenarios, reports Eden Stiffman.

For some charities, the situation is dire: Half of the respondents to a Foraker Group survey rely on federal funds for at least 50 percent of their budgets. And more than 10 percent said if the funding freeze continues, they’ll have to close their doors. Many of those organizations provide essential health and social services.

Having contingency budgets is always a good practice, not only to help nonprofits plan but also when seeking new sources of revenue, Kristine Alvarez at the Nonprofit Finance Fund told Eden. “Scenario budgeting, combined with reaching out to funders, is something that we would suggest even in the best of times.”

Foundations aren’t known for being nimble in the face of change, which has been a source of frustration for nonprofits facing sudden funding losses and an uncertain future. But two stories this week offer hope for more resources to help charities through these tough times:

  • Progressive foundations, which have so far been quiet in the face of Trump administration policies, may be gearing up to release more funds, writes Alex Daniels. Foundation endowments have done well on Wall Street, gaining more than 13 percent last year. Aaron Dorfman of the National Committee for Responsive Philanthropy, who has been speaking with foundation leaders, told Alex, “There will absolutely be dozens and dozens of more announcements of increased spending.”
  • Among the resources beginning to materialize are emergency funds, mostly by intermediary and small donor groups, writes Stephanie Beasley in another piece. Stephanie has compiled a list that she will keep updated on our site and is asking readers to let her know of other emergency funds.

The Chronicle has been keeping readers up-to-date on the fast-moving changes from the Trump administration in our “Nonprofits and the Trump Agenda” section. Last week, reporters who have been diligently covering those stories joined our editor-in-chief, Andrew Simon, for an online roundtable to discuss their findings and what the second Trump administration means for the nonprofit world. Listen to them talk about federal funding, DEI threats, what lobbying and advocacy can accomplish, and more.

Other highlights from this week:

Development directors are in high demand in the job market these days. LinkedIn ranks that role as number seven in its list of jobs on the rise, reports Rasheeda Childress, who talked to development directors and search firms to explore just what development directors do and what skills are required for the job.

In another job-related piece, Rasheeda offers tips for new fundraisers after interviewing people who have been in the field just a few years. Next-gen fundraisers explain what they wish they’d known when they started and offer advice on how to overcome the jitters, recover from mistakes, and handle donors who want to support projects that aren’t in line with the charity’s mission.

In an opinion piece, our columnist Cora Daniels says democracy funders have lost ground in their efforts to court public opinion. The solution lies in storytelling. “Authoritarians already know the value of story, amassing power by tightly controlling narratives and spreading misinformation,” she writes.

“Policy — either good or bad — is built on narratives that define both the existing problems and viable solutions,” she continues. “Whether someone believes that democracy is crumbling, or that America’s greatest days occurred in a past worth returning to, or something else entirely, depends on the narratives they hold true.”

      — Marilyn Dickey, Senior Editor, Copy


      Webinars

      • 041025_Strategies for Attracting_COP_newsletter_Plain.jpg

        Today, April 10 at 2 p.m. ET | Register Now

        As operating costs continue to rise and economic uncertainty persists, nonprofits need unrestricted funding more than ever. Join us for Smart Strategies for Attracting General Operating Support to learn from a highly successful chief development officer, as well as a consultant who has helped raise more than $20 million, how to boost your odds of attracting these grants.

      Online Forums

      • NewsletterPlain-600x500 (5).png

        Today: Tuesday, April 1 at 2 p.m. ET | Register Now

        Artificial intelligence tools rely on vast amounts of data to deliver information and ideas at lightning speed. However, nonprofits must be vigilant about protecting the personal information of their clients and donors. Join us for Ensuring Data Privacy in the Age of AI: What Nonprofits Need to Know to identify what nonprofits should do to ensure that AI tools do not compromise the privacy of key constituents.
      • NewsletterPlain-600x500 (8).png

        Today, April 29 at 2 p.m. ET | Register Now

        Trust in nonprofits has been falling for years. How can charities and grant makers reverse the trend? Join us for How Nonprofits Can Rebuild Trust With America to learn from Kristen Grimm, founder of Spitfire Strategies, who conducted research and created a playbook for tackling the trust deficit. Aisha Nyandoro, CEO of Springboard to Opportunities, has applied Spitfire’s ideas and will share practical advice on how to earn trust with funders, partners, and the public.

      More News, Advice, and Opinion

      • 2166589140
        Opinion

        Want to Encourage More Wealthy People to Give? Here’s a Solution.

        By Eric Weingartner
        Foundations should share their deep expertise on issues and causes to help aspiring philanthropists move their money off the sidelines.
      • 1358189295
        Giving Data

        ‘Heartening’ Rebound Lifts College and University Gifts to $61.5 Billion

        By Rasheeda Childress
        Giving increased by 3 percent in 2024. Bright spots included gifts from DAFs and funding for research.
      • 1341785038
        Research Roundup

        Donors Stepped Up at Year’s End; DAF Sponsors Can Spur Giving

        By Rasheeda Childress
        Giving was up 21 percent in the fourth quarter of 2024 compared to the third. Plus, a survey of DAF sponsors and event fundraising in 2024.
      • Marla Blow will become CEO of the Skoll Foundation.
        Transitions

        Skoll Foundation Promotes Marla Blow to CEO

        By M.J. Prest
        Also, the BBB Wise Giving Alliance and Direct Relief have tapped new CEOs, and Rockefeller Philanthropy Advisors named two interim co-leaders.
      • icon of an envelope in a bright gradient on a black background.
        Letters to the Editor

        Funders Should Practice Humility, Not Bravery

        In response to recent op-ed, reader argues that nonprofits should stay in their lane and out of politics.

      WHAT WE’RE READING ELSEWHERE

      The Trump administration is canceling billions of dollars in public health programs and plans to cut hundreds of environmental-protection grants. The funds address a huge variety of issues, including childhood asthma, Texas’s measles outbreak, wildfire preparedness, suicide prevention, and clean drinking water. State health departments began receiving notices this week that the public health grants, totaling more than $12 billion, were terminated immediately. That money was originally allocated to fight the pandemic. A Department of Health and Human Services spokesman said the department “will no longer waste billions of taxpayer dollars responding to a nonexistent pandemic that Americans moved on from years ago.” Democrats are protesting that cancellation of the environmental grants — which fund what the Environmental Protection Agency now deems “unnecessary programs” — violates both contractual obligations and court orders. (New York Times and Los Angeles Times)

      The Trump administration plans to cut $1 billion in funding for Gavi, the global vaccine initiative, as part of its massive downsizing of the U.S. Agency for International Development. The United States is the third-biggest contributor to Gavi, behind the United Kingdom and the Gates Foundation. The organization’s CEO said she had not been notified of the cuts, which she warned could lead to the deaths of more than 1 million children over five years. The State Department refused to discuss specific cuts to foreign aid but said in a statement that it has not cut programs that “advance the core national interests of the United States.” (Washington Post)

      President Trump’s attempts to squash diversity, equity, and inclusion programs has focused attention on a nonprofit that has worked to increase diversity on Wall Street for decades. The Equal Employment Opportunity Commission has asked more than 20 major companies about their ties to Sponsors for Educational Opportunity, a nonprofit that helps place entry-level talent in law offices and Wall Street firms. The organization has a track record of attracting diverse professionals early in their careers who then move into senior leadership, said Porter Braswell, founder of 2045 Studio, a membership network for professionals of color. But according to the EEOC, training awarded to people because of their race could be considered unlawful discrimination (New York Times)

      The nonprofit Internet Archive, whose Wayback Machine has catalogued nearly three decades of web history, is working overtime these days to store pages being purged by the Trump administration. In their zeal to stamp out traces of diversity, equity, and inclusion work, federal officials have wiped thousands of datasets, most in scientific and environmental fields. With a staff of about 120 and a budget of about $28 million, the Internet Archive has cataloged some 73,000 web pages that existed on U.S. government websites that were expunged after Trump’s inauguration, Wayback Machine director Mark Graham said. (NPR)

      The Trump administration plans to freeze $27.5 million in grants to family planning organizations while it ensures that none of the money is going to diversity, equity, and inclusion efforts. The freeze would hit Planned Parenthood affiliates, which were to receive about $120 million this year, about half of the total funding from a program administered by the Department of Health and Human Services. An HHS spokesman said the department sought to ensure grant recipients were complying with the president’s executive orders and “federal law.” Alexis McGill Johnson, president and CEO of Planned Parenthood Federation of America, said the administration “wants to shut down Planned Parenthood health centers by any means necessary.” (Wall Street Journal — subscription)

      The nonprofit producer of “Sesame Street” faces serious financial woes. Sesame Workshop laid off about 20 percent of its staff, or 200 people this month, in part because it is losing a contract from HBO which paid it at least $30 million a year in distribution rights. What’s more, as the Trump administration attempts to dismantle foreign assistance programs, the organization has lost government grants that pay for global distribution. Congress is poised to further cut its federal support in the months to come. (New York Times)

      A landmark climate case, in which young activists sued the federal government over its policies on fossil fuels, ended after 10 years on Monday, when the Supreme Court refused to take it up. That decision left intact an appeals court ruling that the issue was a matter for elected officials and not judges. The court case started in 2015, when 21 young people represented by Our Children’s Trust, a nonprofit law firm in Oregon, sued the Obama administration. The young people argued that policies promoting the use of fossil fuels violated their constitutional rights, and the case has served as a template for more successful litigation in Hawaii and Montana. (New York Times)

      Researchers at Columbia University are waiting to see if their federal funds will be restored after university administrators bowed to nearly all of the Trump administration’s demands for measures to prevent the kind of protests over Gaza that roiled the school last year. Among the work in the balance is research on brain cancer, water quality, and babies born to mothers who had contracted Covid. The Department of Education has not said yet whether the $400 million in grants will be restored. As they await word, some researchers are angry that the government drew their work into the fight with Columbia. (Associated Press)


      Marilyn Dickey
      Marilyn Dickey is senior editor for copy at the Chronicle of Philanthropy.
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