Adapting to funding freezes: How nonprofits & funders can stay resilient

In today's high-speed political environment, federal decisions can significantly affect funding decisions and access for funders, nonprofits, higher education, and other organizations that rely on federal funding.   

Decisions from the Supreme Court, President Donald Trump’s administration, or agencies like the Office of Management and Budget, can drastically reshape how money flows to nonprofits and higher education institutions. Many changes are happening including executive orders and cuts in funding.   

The controversy involving Harvard University has ignited debates about contracts, federal grants, and financial transparency. As a result, those who wish to help their communities are feeling the impact. 

This tension isn't entirely new. At times, the federal government has moved to reallocate or block federal spending, asserting its authority to guide national priorities. For example, disputes over foreign aid, federal law, and which organizations receive support have often seen the administration arguing for tighter control.   

The result: a swirl of uncertainty that leaves nonprofits and funders scrambling to adapt. Many people wonder if they have to give up their independence to keep their programs running.   

At Foundant, we recognize the immense stress funders and nonprofits are under when political decisions disrupt established funding pipelines. It’s not just about ideology, it’s about real people, real programs, and the futures of those served by nonprofit missions.   

New executive orders, funding freezes, and compliance changes are putting pressure on many nonprofits and funders to adapt quickly.  

As the Trump administration freezes demonstrate, even the hint of withheld funding could create waves. Whether the Office of Management and Budget is pausing grant disbursements or fighting the Supreme Court over executive authority, the message is clear: preparedness matters.   

Broadening Funding Sources  

One way to reduce vulnerability to federal changes is by expanding revenue streams.  

Consider strategies like: 

A broader base of support helps insulate organizations from sudden changes in federal funding.  

Scenario planning and contingency strategies  

Proactive organizations often engage in scenario planning, mapping out potential political or policy outcomes and preparing responses. Whether it’s budget cuts, increased scrutiny, or changes in compliance requirements, having contingency plans in place allows for faster, more confident decision-making when change hits.