"... If donors are largely unaware of fluctuations in the grants received by charities, then reductions in fund-raising becomes a sensible explanation for crowding out..."

This week, I came across a large scale research article from 2009 titled, “Is Crowding Out Due Entirely to Fundraising?”

Reflection questions:

• If your organization suddenly lost significant government funding, what unique strengths, especially through your donor relationships, could you leverage to better serve your specific community's needs?

• The nonprofit sector has faced profound shifts before. Will you ponder with me how our current challenges could bring unexpected gifts as well?

Reflection on quotes

The last three months have highlighted a critical challenge many nonprofits face: the delicate balance between government funding and private donations. Many nonprofits have built programs around federal grants, only to see them reduced or eliminated, leaving the organization scrambling to fill the gap. So many of my coaching sessions have centered around this issue. One striking statistic from this 17 year look-back research is that every $1000 grant reduces giving by $727. So, I invite you to join me in reflecting on how the reversal of "crowding out effect” that federal funding has on fundraising may actually help us build more sustainable funding models for the future.

Let's be honest – the loss of federal funding creates real hardship. When grants and contracts disappear, the impact is immediate and often devastating. Programs get cut, staff positions eliminated, and communities lose vital services. I've worked with many organizations facing this exact situation, and I want to acknowledge that rebuilding fundraising capacity takes time – often multiple years – and private donations rarely replace federal dollars on a one-to-one basis.

But here's what I am pondering. Smaller, local nonprofits have something that larger institutions often lack: nimbleness and deep community connections. When a nonprofit is no longer bound by rigid federal guidelines, the nonprofit gains the freedom to design programs that truly reflect their community's unique needs and strengths.

I've witnessed a remarkable transformation when an organization shifts from "We need to design this program to meet grant requirements" to "We need to design this program to meet our community's actual needs." This pivot often leads to more innovative, responsive, and ultimately sustainable services. This pivot also tends to engage our donors more deeply into the mission.

This engagement could create a more diverse and loyal donor base. Unlike government funding that can disappear with budget cuts or changing priorities, community-based support tends to be more stable and adaptable over time. Our donors become true partners in our mission rather than just funding sources.

What do you think? Send me a text.

To explore fundraising coaching deeper and to schedule an exploratory session, visit ServingNonprofits.com.

Music credit: Woeisuhmebop

..."It is the most beautiful, the most noble side of neighbourly love, wherein the word has fully become deed..."

This week, I’m sharing quotes from The Untapped Power of Jewish Fellowships and Forgotten Approaches to Care to connect the practice of hevrot to our work in fundraising.

Reflection questions:

• How are you “thinking in relationship” to avoid depersonalizing our donors?

• How are you bringing groups of donors together to create networks of care?

Reflection on quote:

At its core, fundraising isn't just about securing donations—it's about fostering genuine human connections built on care and mutual recognition. This week, I’ve been researching the Jewish practice of hevrot. The article, The Untapped Power of Jewish Fellowships, defines hevrot as small, local voluntaristic groups of individuals who join together to do good works or promote piety. The practice dates to at least the second century. The research in Forgotten Approaches to Care further explores this practice.

Rather than seeing donors simply as sources of financial support, we recognize them as partners in a shared mission. When we frame our work through an ethics of care, we acknowledge the interdependence that exists between all members of our community.

Think about what makes fundraising truly meaningful—it's not just the transaction but "the most beautiful, the most noble side of neighbourly love, wherein the word has fully become deed." When we approach donors with this mindset, we invite them into a relationship built on genuine care rather than mere obligation. As fundraisers, we have the privilege of weaving these networks of care that strengthen our entire community. When we face challenges or donor fatigue, we return to this fundamental truth: we're not just raising money—we're connecting people to purpose and to each other.

What do you think? Send me a text.

To explore fundraising coaching deeper and to schedule an exploratory session, visit ServingNonprofits.com.

Music credit: Woeisuhmebop

"...There's only one thing I will not concede: that it might be meaningless to strive for a good cause."

This week, I’m reflecting on his words from Summer Meditations by Vacslav Havel, published in 1993.

Reflection question:

• What is the internal battle within yourself that you are facing related to the external threats to the cause you serve? And, how will you stand for principle in that internal battle?

Reflection on the quote:

When I consider the challenges we face in raising sufficient funding for the good causes we serve, I look for wisdom those who faced greater challenges that I will ever face. I think of those who faced torture for speaking truth, those who faced imprisonment for desiring a more just world. One such writer was Vacslav Havel. He was a playwright and political dissident - tortured and imprisoned for speaking against the lies of a repressive government. His writings speak to persistence in the face of seemingly insurmountable challenges.

When we face external threats to the cause we serve or the funding we receive, we also face an internal battle within ourselves. Do we give up or give in? Or, do we continue to work for what is right and good? When we stand for principle decently, reasonably, sincerely, civilly, and tolerantly, it gives hope and it attracts donors to wish to stand with us.

What do you think? Send me a text.

To explore fundraising coaching deeper and to schedule an exploratory session, visit ServingNonprofits.com.

Music credit: Woeisuhmebop