Funder Reflections on Navigating Fundraising Headwinds
August 26, 2025
We are in an unprecedented moment in time. One that has many across the nonprofit and philanthropic sectors navigating uncertain headwinds and a volatile funding landscape that obscure our collective path forward.
In communities nationwide, nonprofit organizations are shrinking services, laying off staff, and in some cases, facing closure. This includes youth mentoring programs that support young people from all walks of life—youth who are navigating the pressures of adolescence, grappling with mental health and loneliness, exploring college and career options, and seeking meaningful relationships and support.
What is the ‘right’ or prudent course of action for any individual, advocate, or organization grappling with the issues we face across the sector? While that may differ for us all, what we do know is that together – as nonprofits and philanthropic partners – we must continue to lean in to meet this moment and chart a sustainable path forward by learning and sharing resources, exploring partnerships and opportunities for collective impact, and mobilizing coalitions that help shift harmful and stifling narratives and policies that impact our efforts across the youth-development field.
Our shared challenges come at a time when federal investments are being cut or delayed, particularly in areas like youth development and community safety. Philanthropy has always played a critical role in working alongside and supporting youth-serving organizations, convening and supporting collaborative efforts, and uplifting stories and needs to drive systems level change.
In keeping with this commitment to shared learning and collaboration, we gathered reflections and guidance from our philanthropic partners – including, Larry Wallach, President of the Viney Wallach Foundation and Charles ‘Chip’ R. Burke Jr., Chairman at The Grable Foundation and MENTOR National board member – on how we as nonprofits can strategically approach and position ourselves with funders in a rapidly evolving environment. We hope you find these reflections and insights timely and helpful as you think about and respond to today’s pressures.
What are 3-5 things you recommend every nonprofit leader asks their funders in this current state of uncertainty?
Larry: Having honest and open conversations with funders is now more necessary than ever to build partnership, expand our understanding of the real and immediate needs within the sector, and increase investment in your work and mission. Whenever possible, we encourage organizations to ask funders about their approach to offering general operating grants and multi-year support, and whether funding can be directed towards advocacy, systems-change, or staff-retention needs. There is a real window of opportunity to inform and encourage funders (many of whom have already begun this work) to ease their proposal requirements and reporting timelines and metrics. We also think it’s beneficial to leave conversations with funders with a clear understanding of whether they will be shifting their priorities in the next 12-24 months.
Chip: I agree, now is the time to have conversations with funders about shifting to general operating grants to help fill any gaps left by lost funding—either now or in any renewals or coming up. I also would encourage asking funders if they have heard anything about other potential cuts coming—either at their own organizations, or elsewhere, as sometimes they have useful intel. Finally, I would ask about what the foundation sees as absolutely essential or core to its mission. There could be a need for cuts in the future, and it is good to know where a foundation’s priorities lie.
How are you adjusting your giving in light of recent federal cuts and do you have a guiding philosophy for these strategic shifts?
Larry: Since day one, most of our grants have been unrestricted and we have been a trust-based funder by design, not exception. We maintain this commitment and we simplify our grantmaking to reduce the strain on grantees, provide general operating support, and commit multi‑year support, so nonprofits can focus on impact, not paperwork. We want our unrestricted support to allow grantees to fund advocacy, policy work, or staff retention when it aligns with their mission.
We believe funders must address both symptoms and systems, filling funding gaps quickly while also investing upstream in democracy-preserving efforts like Nonprofit VOTE, Groundwork Project, and other advocacy and organizing work that tackles root causes. We have yet to see an increase in funding requests due to the federal funding cuts, but stability now doesn’t preclude shifts later. We are monitoring the situation closely to be responsive and ready to move quickly and provide emergency support as necessary. We have set aside liquid reserves and stand ready to respond if a trusteed grantee faces abrupt federal losses.
Chip: We have taken this moment to pause and listen more to grantees and try to understand what they need and how we can be most helpful. The aim is to keep our grantees whole as much as possible and offer more flexibility in terms of providing general operating grants instead of program-focused ones.
How are funders communicating and collaborating in this moment?
Larry: Collaborating with other funders is core to our approach at the Foundation. We co-fund, coordinate, and participate in funder networks to strengthen collective impact. We also encourage grantees to do the same to break silos, share knowledge, and find strength in partnerships. In turbulent times, we believe philanthropy must provide risk-capital and act as a stabilizer, backing innovation, shoring up capacity, and serving as a responsive safety net when public funding lags.
Chip: We are fortunate to have some great local collaboration among funders, and we are having lots of conversations about how we can be most effective – including beyond grantmaking. Both with local collaborations, and more broadly through the Council on Foundations, we have also been coming together to contact our elected officials to voice our concerns.
What trends are you seeing among nonprofit grantees that inform your giving priorities and what advice do you have for nonprofits right now?
Larry: So far, youth-serving and workforce development grantees are showing subtle stressors which we continue to monitor closely. We foresee a growing emphasis on systems-change nonprofits and those supporting youth/families facing economic uncertainty. At the Foundation, we are drawn to narratives that link immediate relief with long-term transformation, especially when framed around equity, resilience, and public-good outcomes. We’re also moved by stories of cross-sector collaboration, organizations coming together to face shared challenges and elevate collective impact.
We encourage nonprofit leaders not to stay silent. If you’re struggling – tell us! Share challenges early as funders can’t help with what they don’t know and value clarity and forward-looking ambition. When talking about the risks you’re facing, be crisp in defining the problem, outlining your resilience plan, and grounding it in a vision for long-term impact.
In times of scarcity, the instinct to turn inward can be strong, but we believe that’s a mistake. We encourage funders and nonprofits to resist isolationism and instead lean into collaboration and coalition-building. By joining forces, the sector can advocate more effectively, respond more nimbly, and collectively tackle the social issues at the heart of their work.
Chip: The big trend I am seeing is just concern – across the board, nonprofit organizations are concerned about this moment and about the future. They are needing to do more than ever, while the funds to do the work are in some cases dwindling. I urge nonprofits to try not to overreact or become paralyzed by the uncertainty; until you know how you will be impacted try to remain calm. At the same time, now is the time for every organization to think deeply about its mission and its core work and have a plan for where to make cuts should that become necessary. You want to make sure to maintain your core.
When it comes to our giving priorities, we are staying true to our mission but are rethinking how we give in the face of the federal cuts. One example is public broadcasting, which recently lost all of its funding. We are looking at where the cuts have happened and thinking about how we can best advance our mission through the support of additional, aligned organizations and causes.
Now is a time for individual and collective action. MENTOR is grateful to our philanthropic partners for sharing these insights. Moving forward, funders and nonprofits alike must coordinate strategies, share information and resources, and continue building coalitions and a robust ecosystem of organizations that can push for lasting change for our nation’s young people and our communities.