Regulatory updates in flux have caused an uncertainty felt across United States — and this sense has not spared the nonprofit sector. Conversations with fundraising and other prospect development (PD) professionals are rife with questions. The answers to many of our questions are outside our control — we cannot decide whether our organization may need to change fundraising priorities to comply with executive orders, how to communicate changes or university policies with donors or what measures our organizations may make to stay financially solvent. Inspired by the Apra Community Discussion “Navigating Prospect Development in Times of Rapid Change” that took place in March, I reached out to my network to learn about the immediate challenges impacting our work, and what our PD colleagues are doing to mitigate these issues.

The number one concern other professionals mentioned was the potential decrease in federal funding to their organization and the increasing reliance on private philanthropy that could follow. 

What can PD do to respond?

Are there individual philanthropists or foundations who have announced a commitment to increasing their philanthropy in response to current events? PD teams can examine local and national news to identify these parties. PD can also dive into their organization’s own data to find benefactors who have previously supported programs that may now be impacted by federal cuts. These names should be reviewed with gift officers for a new ask.

Some organizations are already seeing donors pausing their giving due to mission misalignment or economic uncertainty, which has caused solicitations to be delayed or halted entirely.

What can PD do to respond?

Work with gift officers to update expected ask dates and probabilities. These adjustments will allow for more accurate forecasting and will give leadership a more realistic expectation of philanthropy’s contribution to the organization’s bottom line in a potentially tumultuous year. If there are donors who are decreasing their giving or stepping back due to mission misalignment, this may be time to pause and reflect. Are these donors your organization wants to re-engage with some earnest conversations around the organization’s mission (particularly as misinformation is running rampant)? On the other hand, would it be better to pause the relationship with the donor for now — or permanently? PD may not be able to make the final decisions, but we can start the conversations with our gift officers.

In the meantime, do you need to update your prospect coding? If you have a “not a prospect at this time” code, do you have a policy in place for how often those names are reviewed to ensure the code doesn’t become a graveyard for prospects? Alternatively, some organizations are seeing an influx of gifts and new donors as donors flock to support their cause. PD can ensure there is a plan in place for how to engage these donors and maintain that connection. For more insights on managing crisis-driven donations, read this Connections article by Jennifer Huebner and Erica Williams.

Some organizations are taking the current political landscape as an opportunity to reevaluate all outstanding asks. Beyond donor interest, some asks are being delayed due to uncertainty about a program’s future. Recent events may even inspire a donor to give to a new program, or gift officers could make the case for switching an ask to a different program or type of support. Now is a great time to partner with gift officers to review their proposals — even with expected dates further into the future — and to remind the gift officers to work with their institutional partners. This is a time that truly drives home the value of private philanthropy.

Nearly every person I spoke with also mentioned operational uncertainty. Many of us remember the early days of COVID-19, when organizations were pausing hiring, laying off nonessential workers, slashing bonuses, etc. People are beginning to see parallels with the current point in time, with some organizations already announcing hiring freezes and pausing non-essential travel.

If you’re in leadership, even if it isn’t executive leadership, communicate with your team and allow them space to reflect upon their feelings regarding this uncertainty. Communicate with your manager and advocate for leadership to be as transparent as possible about how the organization is being affected and what steps are being considered. Even if the answers are unclear, timeliness and transparency of communication are key to ensuring the teams feel like they’re in this together.

The last broad category revolves around diversity, equity and inclusion (DEI) programming.

While some organizations are renaming programs and pillars, others are leaning hard into DEI. Some educational organizations are even reconsidering scholarships targeted toward certain groups for fear they could be considered DEI-related programming. This impacts fundraising and how programs are communicated to donors, but the main impact I saw in PD was how organizations are rethinking the diversification of their boards while maintaining compliance with executive orders regarding DEI.

Regarding boards, there is also a greater interest in due diligence research for board members and major donors with a focus on value alignment. Apra still advises not to use Federal Election Commission (FEC) data in doing this sort of research, but PD folks are being pressured now more than ever to use this data to help gift officers and organizations guide their conversations. This is a good time to review this Ask the Ethicist column on the use of FEC data and the entire Apra Ethics and Compliance Toolkit.

I was recently reminded that in times of uncertainty — political, economic or otherwise — donors may be reluctant to commit to a cash gift. However, this may be a good time to start conversations around a deferred or planned gift. If PD is not currently working with your planned giving team, or if your organization doesn’t have a planned giving program, now is the time to make the case to start! Just make sure you update your gift acceptance and prospect management policies accordingly.

It’s also important to recognize that we are all in a state of arrested development, and it’s okay to acknowledge that your feelings may be complicated and multifaceted. Give yourself the space to recognize that you do not have and cannot have all the answers. Despite this, you are doing your best to work with your team in pursuit of the ultimate goal — achieving your organization’s mission.

Before concluding, here are some resources that may be helpful:

• National Council of Nonprofits’ (NCN) Chart of Executive Orders: The NCN is regularly updating this list of executive orders and how they may effect nonprofits. They may especially come in handy as the PD team is often expected to be the knower of all things.
• Sector-specific resources about impacts and legislation: Look to organizations like Council for Advancement and Support of Education (CASE), the American Association of Medical Colleges (AAMC), the American Alliance of Museums, etc., for news updates.
• Apra Exchange: Know that your colleagues are likely experiencing similar things and are always willing to share any information they may have.
• InsidePhilanthropy, Chronicle of Philanthropy, Philanthropy News Digest and other publications are all releasing information specific to impacts on philanthropy, as well as articles such as lists of foundations that are increasing giving.
• The Apra Content Development Committee hopes to host another discussion forum on this topic, so keep an eye out for updates in the coming months.