Asked & Answered: How Nonprofits Are Surviving Federal Funding Cuts

Nonprofits are navigating one of the most difficult funding environments in recent memory. We recently interviewed Andrew G. Steele, Chief Development & Mobilization Officer at Global Refuge, to learn how his team is adapting to revenue-shock in real time. Here’s what we learned:

Scenario Plan for the “Impossible”

Similar to creating a personal emergency fund, nonprofits should create contingency plans. But despite Andrew spending months scenario planning with the board, Q1 2025 was far worse than anyone imagined.

Andrew’s advice: plan for the unthinkable. Create scenarios that feel extreme, because thinking through wild “what-ifs” prepares leadership to respond faster if the unexpected happens.

Stabilize Before Diversifying

In a funding emergency, it’s tempting to chase new donors to save the day. But Andrew warned against ignoring the supporters you already have.

Strengthen existing donor relationships

Early in the crisis, major foundations told Global Refuge they weren’t taking on new grantees, and instead increasing gifts to existing, trusted partners. Establishing new relationships might take more time than you have.

Communicate with transparency

During the peak of their funding crisis, Andrew’s team hosted monthly donor Zoom meetings with their CEO for Q&A and updates. The transparent and authentic conversations built trust and inspired larger gifts.

Balance crisis messaging

Avoid a “save us or we’ll close” narrative. Instead, convey resilience and ongoing need, such as “we’re strong enough to survive, but stronger with your help.”

Donor Engagement That Works

Global Refuge also consciously shifted away from “permacrisis” appeals, without sacrificing revenue:

Create advisors

Andrew quoted an old fundraising adage: “If you want advice, ask for gifts. If you want gifts, ask for advice.” Leadership groups – like topical advisory councils – gave large donors a place to share their hard-won expertise, an ego-boost, and a deeper stake in the nonprofit’s success.

Create insiders

CEO appearances on NPR were followed by exclusive behind-the-scenes updates to donors, making supporters feel like insiders.

Highlight corporate matching

Automated prompts – as simple as asking donors if their company matches gifts – helped donors double or triple their impact.

Embrace branded merch

Clever bumper stickers and shirts push your messaging even further. Even think about using it for promotions and incentives in peer to peer giving.

Double down on what’s working

Scale up any tactic, geo, or audience that is already performing, rather than chasing small wins from experiments.

Smart Growth for the Long Term

Even while focusing on current supporters, Global Refuge has been is laying groundwork for future donors:

Search engine optimization (SEO): Every blog post is optimized for the keywords prospective donors are searching.
Peer-to-peer fundraising: Global Refuge is asking ambassadors to host bike rides, home events, and online campaigns — all low-cost ways to tap new networks.
Small, hosted gatherings: Instead of expensive galas, the team relies on donor-led house parties and mini-receptions to build community.

Interested in hearing more of Andrew's advice? Watch the webcast 👉 Nonprofit Survival in an Era of Cuts: Finding Balance, Stability, and Growth >