I have been here before, but this feels different
Comparing and Constrasting 2025 with 2020
First, let me start by offering a heartfelt apology to all of you who follow the Pinnacle Strategies newsletter. I know it’s been far too long since my last update. Life has thrown a few curveballs my way lately, with family commitments-especially during the overlapping chaos of theater and dance season-colliding with the demands of a full-time job and another newsletter I manage. Something had to give, and unfortunately, Pinnacle Strategies temporarily took a back seat. But I want to assure you that I’m still here, actively engaged, and working toward a more sustainable schedule so I can continue sharing insights and resources for those navigating the ever-changing nonprofit landscape.
Despite these personal challenges, there is a lot happening in the nonprofit sector right now, and it’s more important than ever to stay connected and informed. Just this week, I had conversations with several nonprofit executive directors, and a common thread emerged: many of us are operating in an environment filled with anxiety and uncertainty. It’s reminiscent of the early days of the COVID-19 pandemic, but this time, the challenges feel even more complex and persistent.
Back in 2020, when the pandemic first hit, nonprofits were forced to rapidly reimagine how they delivered services. At the food pantry I oversee, we had to pivot from in-person visits to a delivery-based system almost overnight. Organizations that rely on face-to-face interaction to fulfill their missions had to get creative, finding new ways to connect with and support their communities. In many ways, that period was both the best and worst of times. While the need was overwhelming, support from government, foundations, and individual donors surged. Emergency funding flowed in, traditional grant applications were streamlined, and donors-sometimes with extra resources on hand-stepped up to help those most in need.
Fast forward to today, and the landscape has changed dramatically. The sector is now facing what feels like a relentless barrage of challenges. Government funding is shrinking, with proven anti-poverty programs like Head Start being scaled back and initiatives such as AmeriCorps-where many nonprofit leaders got their start-losing critical support. This retrenchment has placed nonprofits squarely in the crosshairs, often unfairly portrayed as examples of waste or inefficiency. Every day seems to bring another announcement of funding cuts or increased regulatory hurdles, compounding the sense of instability.
Philanthropy, once a reliable backstop, is also facing headwinds in 2025. Corporate partners are grappling with economic uncertainty, tariffs, and supply chain disruptions, which often leads to a reduction in charitable giving as companies focus on their own survival. Individual donors are feeling the pinch, too. Volatility in the stock market and persistent inflation have made many households more cautious about their charitable contributions. Older donors, who have traditionally been the backbone of nonprofit fundraising, are worried about their retirement savings, while younger donors are often focused on meeting their own immediate needs.
These financial pressures are not just anecdotal. Recent surveys show that more than half of nonprofit leaders cite financial health as their top concern going into 2025, with many struggling to balance increased demand for services against declining revenues. The challenge is not just about finding new funding sources, but also about managing rising costs and supporting staff who are stretched thin. Workforce issues-ranging from staffing shortages to burnout and the need for better compensation-are a growing concern, with about one in five leaders highlighting these as critical challenges for their organizations.
Despite these daunting obstacles, there are reasons for hope and opportunities for innovation. The nonprofit sector has always been resilient, adapting to change and finding creative ways to serve communities in need. In 2025, organizations are increasingly embracing donor-centric management, focusing on building deeper relationships with supporters and demonstrating the tangible impact of their work5. Social fundraising, which leverages the power of community and digital platforms, is helping nonprofits reach new audiences and foster a sense of connection among donors. Technology, especially the integration of artificial intelligence and data analytics, is streamlining operations and providing new insights into donor behavior and program effectiveness.
Another positive trend is the rise of values-informed fundraising, where organizations align their messaging and outreach with the core values of their supporters7. This approach not only builds trust but also helps nonprofits stand out in a crowded and competitive funding environment. Collaborative efforts, such as partnerships and mergers, are also becoming more common as organizations look for ways to increase efficiency and expand their impact.
Looking ahead, it’s clear that the road will not be easy. The sector must continue to advocate for supportive policies, embrace innovation, and prioritize the well-being of staff and volunteers. But if the pandemic taught us anything, it’s that nonprofits are capable of extraordinary things when faced with adversity. Our missions remain as vital as ever, and the communities we serve are counting on us to persevere.
So, while 2025 may feel like the “worst of times” for many in the nonprofit world, there is still a light at the end of the tunnel. By staying focused on our core values, fostering strong relationships with donors and partners, and remaining adaptable in the face of change, we can navigate this period of uncertainty and emerge stronger. Thank you for sticking with me-and with Pinnacle Strategies-as we continue to share insights, tools, and hope for a brighter future in the nonprofit sector.