At the 2025 ANA Nonprofit Conference, one of the hottest topics was how organizations should navigate federal funding cuts while maintaining donor trust. With many nonprofits facing financial uncertainty, a critical question emerged: How transparent should we be with our supporters?
The reality is donors don’t just give to campaigns — they invest in missions that mean something to them. They want to feel connected, informed, and confident that their contributions matter. Yet, too often, nonprofit leaders make up what donors want to hear. This leads many organizations to hesitate to communicate financial challenges, fearing it might alienate donors or discourage giving. In truth, the organizations that openly share their realities, challenges, and opportunities build stronger, long-term donor relationships.
When supporters feel out of the loop, they assume the worst — or may redirect their giving. During the conference, nonprofit leaders shared how proactive communication is helping them maintain, and even grow, donor support amid potential funding cuts.
Be Upfront, But Positive
Instead of leading with panic, frame the conversation around impact and opportunity. Position potential funding cuts as a moment for the community to rally together. For example: "We want to keep you in the loop about potential changes in funding and how we’re planning to sustain our programs. Your support has always been crucial, and together, we can navigate these shifts.”
“While we are unsure of how changes in federal funding may impact our organization, we know that we must innovate and lean on our community more than ever. Here’s how you can make a difference.”
Highlight Donor Impact with Specific Examples
Numbers matter, but stories resonate. Share real-life examples of the people or communities that benefit from donor support. When donors see the direct impact of their contributions, they are more likely to stay engaged. Additionally, use specific examples to show donors exactly what their generosity can achieve.
Tailor Your Messaging
A one-size-fits-all approach doesn’t work. Major donors may need a deeper financial breakdown and personal communications, while general donors may respond best to compelling stories and calls to action. Use segmentation to speak to differing donor motivations.
Demonstrate Resilience
Acknowledge the challenges at hand, but also highlight past successes in overcoming obstacles. If your organization has navigated financial uncertainty before (think of those “unprecedented times,” we emerged from just a few years ago), remind your supporters of the progress they’ve helped achieve.
We can all agree that pending federal cuts are a challenge, but they don’t have to bring things to a halt. While comprehensive data on how donors respond to transparent communication during funding challenges is limited, the existing research and anecdotal evidence point to a consistent theme: donors value honesty, clarity, and proactive engagement. Now is the time to lead with confidence and clarity and invite your supporters to be part of the solution.
