Right now, nonprofit leaders and fundraisers are carrying an impossible weight: shrinking budgets, donor fatigue, staff turnover, all while still being expected to deliver bold results. For social justice organizations, the landscape is even more complicated, with mounting pressure to dilute language, shift priorities, or sidestep difficult truths just to secure funding.

In our most recent webinar, “Group Therapy for Nonprofit Fundraisers,” we created a safe space to offer support, share real strategies, and talk through the challenges nonprofits are facing with honesty and heart. We tackled burning questions from nonprofit leaders like you about funding, donor engagement, and the impact of new anti-DEI mandates. Here’s a recap of the most pressing themes.

Authentic Relationships Over Everything

One key message that came through loud and clear: stop overthinking connections. Building authentic relationships with funders and supporters is more critical than ever. If you’re only reaching out when you need something, that’s not a relationship, it’s a transaction.

Social justice organizations must continue to center their values and build connections rooted in shared purpose, not performative language. One of our panelists, Client Services Manager Hannah Paton, put it simply, “Not all money is good money.” Diluting your mission to fit a funder’s shifting priorities risks mission creep, organizational fatigue, and ultimately, ineffective work.

If you’re wondering, “Who else should we be talking to?”, start with who already believes in your work. Deepen those relationships. Invite people in. And don’t hesitate to share the hard stuff, especially with your current funders.

Facing Anti-DEI Mandates: Where’s the Line?

One participant shared the tough decision their organization made to turn down federal funding due to new anti-DEI requirements. This raised critical questions: Should we expect these restrictions to trickle down to other funding streams? How can organizations protect their missions without jeopardizing financial stability?

The reality is complex. Yes, if funding flows directly from federal grants, these mandates may follow. But there’s also room to navigate. Start proactive conversations with partners or institutional funders now. Clarify where your organization draws the line, and equip your board with a clear stance.

A practical tip: Have an attorney on retainer or on your board. For smaller nonprofits, reach out to advocacy organizations like the National Council of Nonprofits. They’re actively tracking these mandates and offering legal guidance.

The hard truth? The next year will be revealing. Philanthropy is cyclical, and while the immediate impacts are murky, looking back at who receives funding (and who doesn’t) will illuminate how deeply these policies take root.

Words Matter. So Does Strategy.

With federal funders unofficially “banning” words like DEI, Black, underserved, and women, many organizations are concerned about how to describe their work truthfully without risking penalties. The advice here was clear:

1. Don’t assume program officers know the nuances of your work.
2. Have off-the-record conversations (phone is better than email) to understand where the red lines are.
3. Decide your organization’s threshold: where do you adapt language for funding alignment, and where do you hold firm?

The idea is to balance strategic communication with integrity, ensuring you don’t lose sight of the people you serve.

Funders Won’t Move Without a Nudge, So Start the Conversation

A recurring theme: Funders aren’t mind readers. If they don’t know the challenges you’re facing, they can’t adjust their funding practices. Many funders want to help but lack mechanisms or understanding of how policy changes trickle down.

Start with transparency:

• Share the policies affecting you and your organization.
• Explain their direct impact on your work, mission, vision, and beneficiaries.
• Ask funders for flexible funding or emergency support.
• Don’t wait for a formal RFP, initiate the conversation.

While foundations have historically been hesitant to step in where federal funding falls short, proactive relationship-building can shift mindsets, particularly with family and community foundations.

Diversifying Donor Streams

When asked about attracting private donors, the advice was refreshingly simple:

• Communicate consistently. Monthly newsletters, updated social media, and an active website are your baseline.
• Invite people in. Start small with volunteer opportunities, tours, or informal meetups.
• Identify your most consistent and loyal supporters. Someone donating $10 a year since 1997 might be your most loyal advocate who is willing to give more support.

Don’t underestimate community foundations either. They often have access to donor networks and want to see nonprofits succeed. Invite them to events and build relationships with staff members to keep yourself top of mind for future funding conversations.

Corporate Giving: Start with Your Board (Even If They’re Not Corporate Types)

Corporate giving isn’t always about cold-pitching large companies. Start by activating your board members’ networks, even if they’re not employed by corporations. Small business partnerships, sponsorships, or even stockholder connections can open unexpected doors.

And if your board is composed of other nonprofit leaders? Task them with introducing you to their networks. Sometimes “asks” don’t have to be monetary, they can be introductions, co-hosted events, or sharing resources.

Final Thoughts

In this turbulent funding landscape, the answer isn’t to retreat or water down your mission. It is to double down on authenticity, lean into your relationships, and communicate with bold transparency. Donors, whether individuals, foundations, or corporations, need to understand the stakes, and they need to hear it from you.

Keep asking burning questions. Keep having real conversations. That’s how we’ll navigate these headwinds, together.

To get information about future Group Therapy Talks, sign up for our newsletter!