There’s a collective anxiety pulsing through the nonprofit world right now—and it’s not just about donor fatigue or corporations retreating from social causes.
It’s the fear of losing federal funding.
Even though recent statements from the Trump White House claim there’s no executive order targeting nonprofits, the damage may already be done. Once a rumor of that magnitude hits, it plants a seed of uncertainty—and uncertainty is the enemy of strategic planning.
So what happens if that funding dries up?
Nonprofits—especially those focused on equity, advocacy, or international work—are already bracing for the worst. Add to that the ongoing challenges of:
- Burned-out donors who’ve been asked to give through every crisis imaginable
- Corporations pulling back from DEI and social good to play it “safe”
- Funders shifting priorities at dizzying speeds
And suddenly, you’re staring down a revenue cliff.
It’s time to diversify.
That doesn’t just mean applying for more grants or launching more campaigns. It means rethinking your funding structure altogether.
Endowments offer one path forward.
Unlike grants, which have deadlines and reporting requirements, endowments offer consistency. They’re long-term funds invested for sustainability, providing a cushion against political shifts and economic downturns.
At organizations like AMCF, endowments are already being built to support Muslim-led nonprofits, but the model works for anyone trying to create long-term impact.
What Endowments Can Do:
- Protect your mission from sudden funding cuts
- Support staff retention by providing year-round stability
- Show donors and boards you’re thinking beyond crisis mode
You don’t need to be Harvard to start one. But you do need to start before the next funding shock hits.
Final Thought:
The landscape is changing. Whether or not this rumored executive order ever materializes, it’s clear that the old ways of funding mission-driven work aren’t guaranteed anymore.
Don’t wait for the next panic. Start building your safety net now.