Resilient by Design: How Nonprofits Can Withstand (and Thrive in) Tough Economic Times

Nonprofit work has never been easy.

But in times of economic uncertainty—rising costs, donor hesitancy, funder pivots—it can feel especially daunting to keep your mission funded and your team grounded.

You’re not imagining it. We’ve seen this before, and we’re seeing it again:

• Foundations tightening payout rates during market volatility

• Major donors slowing commitments

• Corporate sponsors scaling back

• Program costs rising while reimbursement rates stay flat

  
  

Still, I want to offer a reminder that I’ve shared with many clients:

 Nonprofits are built for resilience.

We’ve always operated with fewer resources than we need, adapted to constant change, and innovated under pressure. It’s in our DNA. But surviving tough times isn’t just about being scrappy; it’s about being strategic.

Here are a few key principles I encourage every nonprofit leader and fundraiser to keep in mind when navigating economic turbulence:

1. Don’t Say No on a Donor’s Behalf

One of the first mistakes organizations make in tough times is pulling back on fundraising.

Yes, some donors may pause their giving. But others? They double down. They want to help, especially if you make a compelling case that connects their gift to real-world impact.

Don’t pre-judge your donors’ capacity or interest. Keep showing up. Keep making the ask. Keep giving people a way to contribute to something meaningful.

2. Lead with Transparency and Gratitude

Now is the time to deepen your relationships, not hide behind polished messaging.

Let your funders know what you’re facing. Now, it’s important not to communicate from a place of desperation, but from strength and resilience. Let your stakeholders know that you’re resilient and have a plan in place to thrive even in times of uncertainty. Invite your donors to stand by your side while you maintain your mission in a challenging economic environment. 

3. Prioritize What’s Working

When budgets tighten, so should your focus.

Ask:

• Which fundraising channels are producing the best ROI?

• Which programs are delivering the clearest outcomes?

• What can we simplify or streamline without sacrificing impact?

This is a time to do fewer things better. It’s not about playing defense—it’s about protecting your core strengths and using them to build your next strategy.

4. Reassess Your Revenue Mix

A shaky economy can quickly expose over-dependence on one source of revenue.

If your organization relies heavily on event income, a single major donor, or government reimbursements, now is the time to diversify.

• Invest in monthly giving or mid-level donor programs

• Expand your foundation pipeline

• Explore partnerships or co-funded initiatives

• Reimagine earned income or fee-for-service models

Resilience isn’t about predicting the future; it’s about having multiple ways to weather it.

5. Stay Mission-Driven, Not Panic-Driven

When times get tough, it’s tempting to chase dollars instead of pursuing your mission.

But short-term “band-aid” funding—especially if it doesn’t align with your goals—can create more problems down the road.

Don’t contort your organization to fit the latest RFP. Instead, clarify what you’re best at, and make the strongest possible case for why that work matters now more than ever.

6. Take Care of Your People

Your staff is your most valuable asset. In hard times, they’re likely being asked to do more with less.

Prioritize:

• Clear communication

• Flexibility where possible

• Mental health and workload boundaries

• Cross-training to prevent burnout and build redundancy

If your team is running on fumes, your impact—and your fundraising—will suffer.

7. Keep Showing Up

Economic downturns don’t last forever. But the relationships you build, and the trust you maintain, will.

Even if you’re not raising record-breaking dollars this quarter, you’re still laying the groundwork for future success. Steward your donors. Show up in your community. Communicate with intention.

Your resilience today is what fuels your growth tomorrow.

At Team Kat & Mouse, we’ve worked with clients through COVID shutdowns, natural disasters, recessions, and leadership transitions. We’ve seen firsthand what nonprofit resilience looks like, and we know how to help you build it.

If you’re feeling overwhelmed, you don’t have to go it alone. Drop us a line for a free consultation, and let’s create a plan that helps you stay strong, stay focused, and stay funded—no matter what the economy throws your way.