Trust in Action: Redefining Fundraising for a Resilient Future

Nonprofits are navigating one of the most uncertain financial landscapes in recent history. Federal funding, once considered stable, has been pulled overnight by executive order. Political and economic instability is increasing, with threats to DEI initiatives and reproductive rights accelerating. Giving USA’s 2024 Report on Giving confirmed what many nonprofit leaders already sensed—philanthropic giving is down across the board when adjusted for inflation.

In a recent study by the Center for Effective Philanthropy, 90% of nonprofit leaders expressed concern that the political climate would negatively impact their organizations. The pressure to maintain funding is high, and many nonprofits are at risk of reverting to donor-centric fundraising, where short-term transactions take precedence over long-term relationships.

But history has shown that moments of crisis often lead to innovation. In the midst of a global pandemic in 2020, we saw medical breakthroughs like never before, with vaccines developed in record time. During the 1970s energy crisis, advancements in fuel efficiency and renewable energy research accelerated, leading to long-term innovations in solar, wind, and battery technology.

The nonprofit sector is now facing its own moment of pressure and transformation. Economic instability, shifting donor expectations, and political challenges are forcing organizations to rethink traditional fundraising models. This is the moment to embrace bold, innovative change and redefine philanthropy for a more resilient future.

Reimagining Fundraising

Traditional donor-centric fundraising has led to power imbalances, donor dependence, and a scarcity mindset that pits nonprofits against each other. But what if organizations stopped competing for funding and instead worked together? What if donors were seen as true partners, rather than decision-makers who dictate nonprofit priorities?

Community-Centric Fundraising (CCF) offers a path forward. It is a model rooted in trust, equity, and deep relationships between nonprofits, donors, and the communities they serve. Data from a promising new report by the Dorothy A. Johnson Center for Philanthropy published in February 2025 supports this shift:

• 76% of surveyed nonprofits have changed their fundraising practices in response to CCF.

• 20.6% have fully adopted CCF principles in their fundraising strategy.

• 37% of nonprofits reported increased revenue after adopting CCF principles.

• 29% saw an increase in number of donors after adopting CCF principles.

This evidence confirms that community-centered fundraising is not just an idealistic concept, but what does trust-based, community-centric fundraising look like in action? It begins with trust: building trust with our communities, our nonprofit partners, and our donors.

Building Trust with Communities

One of the most powerful tools in fundraising is storytelling, but when done carelessly, it can harm the very people nonprofits aim to uplift.

Trust-based storytelling can be as simple as shifting from a "you" narrative to a "we" narrative, avoiding “othering” language, and ensuring that stories center community members as active participants, not passive recipients of charity.

This approach requires nonprofits to build genuine partnerships with community members, gaining consent, collaborating on narratives, and including strengths alongside challenges. It is about amplifying voices rather than controlling them.

Strengthening Nonprofit Partnerships

Nonprofits often see each other as competitors when, in reality, no single organization can solve systemic issues alone. A scarcity mindset leads to missed opportunities, while an abundance mindset opens the door to shared resources, joint fundraising efforts, and collective impact.

Ways to build trust among nonprofit peers include:

• Passing along funding opportunities to organizations better suited for them.

• Publicizing nonprofit partnerships and celebrating collaboration.

• Creating regional advisory committees that bring nonprofits together to address systemic issues collectively.

By working together rather than competing, nonprofits can secure the level of funding and influence required to drive meaningful change.

Redefining Donor Relationships

To move away from transactional giving, nonprofits must reframe how they engage donors.

• Donors should not be positioned as heroes in nonprofit communications or recognition. Instead, fundraising efforts should focus on shared accountability and long-term partnerships.

• Transparency is key. Nonprofits should offer open dialogue opportunities between donors and community members, allowing them to engage directly.

• Saying "no" to donors can strengthen relationships. Pushing back on funding requests that misalign with an organization’s mission can correct power imbalances and foster deeper trust, resulting an a more authentic relationship built on integrity.

What tools can we use to build a more resilient and inclusive future?

Expanding Revenue Streams for Sustainability

Diversification is critical in today’s funding environment. No organization can afford to rely solely on a handful of major donors or restricted grants.

Growing trends in collective giving, employee giving, and donor-advised funds (DAFs) offer nonprofits new ways to expand their revenue base:

• Collective Giving Circles: Over $3 billion was donated through giving circles in 2023, and participation has grown 140% since 2017. Giving circles are more racially diverse, with 60% of new participants identifying as people of color, and 84% majority women.

• Employee Giving Programs: Two-thirds of employers match employee donations, and $5 billion was distributed through employer match programs last year. Platforms like Benevity, Bright Funds, Millie, and YourCause connect nonprofits with corporate giving initiatives.

• Donor-Advised Funds (DAFs): With over $250 billion sitting in DAFs and $54.8 billion distributed in 2023, these funds are a growing, flexible revenue stream. Tools like Candid’s Foundation Directory can help nonprofits identify DAF opportunities.

Nonprofit rating platforms play a crucial role in accessing these funding streams. Collective giving circles, DAFs, and employee giving programs frequently use these platforms as their first stop when vetting organizations. A low rating or an incomplete profile can disqualify a nonprofit before it even enters consideration.

Sites like Charity Navigator, Give.org, Great Nonprofits, Candid, and CharityWatch assess organizations based on mission clarity, financial transparency, governance, impact, and adaptability. Nonprofits should take the time to optimize their profiles, ensuring they highlight their strengths and meet the criteria these platforms use to evaluate credibility. To learn more about how to boost your nonprofit's ratings, check out our free resource available for download HERE.

By maintaining strong ratings and detailed profiles, organizations improve their chances of securing funding and building trust with donors looking for high-impact opportunities.

Resilience Through Planning

Fundraising in uncertain times requires scenario planning and financial modeling. The Maine Association of Nonprofits offers resources for:

• Scenario planning to identify financial risks and develop contingency strategies.

• Crisis management tools to help organizations navigate unexpected funding challenges.

To maintain financial health, nonprofits should:

• Ensure they have 3-6 months of operating reserves as a contingency plan.

• Understand the true cost of their programs to set realistic fundraising goals.

• Leverage the expertise of diverse stakeholders to build adaptable funding strategies.

The Path Forward

The nonprofit sector is at a crossroads. The old donor-centric model is no longer sustainable, but a better alternative exists. The evidence is clear: nonprofits that shift toward collaborative, inclusive fundraising strategies are seeing greater financial stability, deeper donor engagement, and a stronger connection to the communities they serve. By embracing trust-based, community-centered philanthropy, nonprofits can build resilience, expand their donor base, and create systemic change.

Now is the time to act.