Navigating Market Uncertainty: Nonprofit Strategies for the Long Term

The news right now is dominated by moment-to-moment economic tumult and a deepening sense of uncertainty. After years of navigating a challenging economic landscape, nonprofits are faced with renewed pressure to consider how the current volatility will impact the thinking and planning of donors.

Of course, conversations around building an impactful nonprofit fundraising strategy in the face of economic challenges are far from new – in April 2023, my colleague Jane Shepard shared her insights into navigating uncertainty, offering strategies to help nonprofits future-proof their fundraising. Later that year, our Nonprofit Advisory Board outlined their takeaways on the state of the economy and its impacts on nonprofit giving. In 2024, fellow fundraising leader Trista Murphy warned nonprofits to resist the temptation to adopt a scarcity mindset in the face of budget cuts.

Time and again, our partners’ donors have amazed us with their capacity for generosity. Folks are angered about the decisions coming out of this administration and showing signs of wanting to support vital missions, and as a result, we’ve seen some strong fundraising response for our partners. Still, an acknowledgement that economic downturn or even a recession may have an impact on donors’ ability to give is essential to a clear-eyed and forward-looking fundraising strategy.

In uncertain times, nonprofit fundraising leaders will inevitably face budget limitations. In the face of these kinds of constraints, our advice remains consistent: The key to making sure you’re setting up your program for long-term success is knowing where not to make cuts. We’re encouraging our partners to leverage the following strategies to help navigate the uncertainty of the market and protect their programs in the face of ongoing and increasing economic challenges:

Resist the temptation to cut your investment in acquiring new donors. Back in 2008, we saw the recession lead many organizations to make cuts to their acquisition investments to free up immediate funds. While this approach can put programs in the green for a few cycles, slashing investment in acquisition can negatively impact your long-term results.

Acquire more efficiently. Leverage acquisition sources that use data and modeling to find and target the donors most likely to give. This can maximize returns and grow your audience, all while protecting deliverability.

Prioritize recurring giving. Organizations that are investing heavily in growing their sustainer program will have more resilience in the tumult of economic uncertainty – it is your committed, monthly donors who you can lean on to provide consistent support.

Build your mid-level audiences. Challenging economic landscapes will put extra pressure on donor value and upgrades within your existing audiences. Mid-level audiences can have a tremendous impact on your overall fundraising program. Consider how your segmentation strategy can help you optimize mid-level appeals – and look for opportunities to acquire new mid-level donors. Our new sister co-op, The Mid-Level Co-Op, was created to help its members identify new mid-level prospects for their digital file.

Maintain strong testing and optimization practices. The safest way to gain confidence in what messaging will resonate with your unique audiences, testing and optimization to identify and leverage your top-performing tactics is all the more important in moments when competition for attention is high.

Don’t pull back on donor experience. In leaner times, it’s even more important that supporters understand the value and impact their gifts are making. A conscious strategy that makes sure your donors are feeling the love from your org is critical to retaining your core audiences even when the market forces supporters to become more choosy.

In the face of ongoing uncertainty in the economic landscape, the latest news of market volatility only deepens that uncertainty, raising new challenges that aren’t likely to resolve quickly. At MissionWired, we are here to help nonprofits find solutions to the unique challenges that programs might face in this moment – and to help them connect with their audiences at a time when grassroots giving is all the more critical. Our team is always ready to support and answer any questions – just reach out to us at [email protected] to get the conversation started.