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3 Fundraising tips to help nonprofits fill the gap caused by federal funding freezes

Fundraising
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As of February 2025, dozens of unprecedented executive orders (EOs) have been signed by President Trump, impacting a wide range of issues and funding surrounding diversity, climate change, public health, research, international aid, and immigrant assistance.  

While some orders are facing challenges in court and others have already been found unlawful or put on pause by bi-partisan appointed judges, the deluge of orders and funding uncertainty is catastrophic.

“From pausing research on cures for childhood cancer to halting food assistance, safety from domestic violence, and closing suicide hotlines, the impact of even a short pause in funding could be devastating and cost lives.” 
– Diane Yentel, President & CEO at the National Council of Nonprofits  

Now is the time for your nonprofit or association to stay determined and refine a scalable, strategic fundraising plan. Explore these expert tips for nonprofits navigating the federal funding freeze. 

Specific appeal or crowdfunding campaign

Nonprofits know precisely how much funding they receive from federal grants that are either now gone or tenuously at risk due to the EOs. Nonprofits have also been filling funding gaps in communities for decades.  

Every nonprofit should share those specific dollar amounts and numbers of people impacted by the ensuing devastating consequences of these EOs. Sharing something like, “Our organization now faces a $243,000 annual funding gap for our childhood cancer research, which means the clinical trial with 32 enrolled patients is now canceled” resonates far more than “our programs are at risk.”   

Consider creating an online or text-based donation campaign to fund at-risk programs, research, and other deliverables. Use a progress thermometer with the lost funding as your goal. Share constituent voices via video or quote to personify the impact of these losses. Put up a leaderboard to publicly share donors’ names and amounts.  

Another crowdfunding-themed fundraiser is for a nonprofit or association to offer “items” for donors to purchase for your organization—representing incremental tangible costs, such as scholarships, loads of laundry, research supplies, and more. People react to specifics and have a sense of pride in being able to say, “I funded THAT.”

Donation options for Ronald McDonald House Charities of Central Ohio
Ronald McDonald House Charities of Central Ohio offers donors opportunities to give directly for basic needs for families.
A drop down list for Ventura College's donation options.
Colleges can attract more donors by offering various departments, scholarships, and more to directly fund.

Nonprofits should be concise and urgent with messaging, no matter how they choose to fund the gap.

Peer-to-peer campaigns and additions  

Peer-to-peer fundraising empowers advocates and volunteers to fundraise and ask for donations from their friends, family, and colleagues. It harnesses people’s personal passions, which, in today’s climate, can have powerful sway with potential donors.  

As nonprofits and associations are specific about how these EOs negatively impact their mission, programs, people, and industries, that should be a rallying cry for peer-to-peer fundraisers.  

Create an online peer-to-peer campaign, as another part of an existing campaign or without a culminating in-person event, to provide an outlet and opportunity for your advocates’ desires to help your mission.

Restaurants Care's donation page
Restaurants Care encouraged people to become peer-to-peer fundraisers to help impacted restaurant workers recover from the LA wildfires.

Recurring giving

When instability strikes, what would a steady, dependable income stream mean to your nonprofit? Recurring giving regularly infuses those funds so that you can navigate unexpected losses with clarity. Recurring giving donors choose to make a monthly gift of any amount rather than just a one-time donation.

Make recurring giving an option on every appeal, campaign, and donation form, or add a pop-up to encourage donors to become monthly sustainers. As with any appeal, be specific about what recurring donations mean to your mission in the wake of the EOs. 

Now is the time to stay informed and thoughtfully prepare for periods of profound uncertainty. Acting swiftly and strategically can help you bridge the gap left behind by these canceled grants.  

Stay informed on how federal funding freezes or cuts will continue to impact nonprofits and associations. The National Council of Nonprofits is collecting information and making regular updates. Things are changing daily.

A clear, scalable fundraising plan isn’t just a temporary fix—it’s an investment in the resilience of your mission and the future of the communities you serve.  

By embracing innovative fundraising strategies like peer-to-peer campaigns, targeted crowdfunding appeals, and recurring giving initiatives, organizations can mitigate the immediate impact of these policy shifts and lay the groundwork for long-term financial stability.

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