Fundraising Trends in the Wake of Global Crises

While everyone's talking about the funding crisis, forward-leaning NGO leaders are quietly experimenting with radically different approaches to sustainability. These aren't theoretical frameworks—they're real models being tested by organizations who refuse to wait for the old system to fix itself. Here are the four distinct models, each offering a different approach to building resilience in the post-BIG-aid era: 🤝 The Cooperative Model Inspired by Jacqueline Asiimwe Mwesige's NAFASI approach The Vision: Pool resources with peer organizations to create shared financial independence. Start with 3-5 partner organizations, each contributing modest monthly amounts to build collective resilience and reduce donor dependency. Key Operational Capability: Financial pooling + shared governance systems. Requires robust mechanisms for collective decision-making about resource allocation and transparent financial management across organizations. 🕸️ The Network Model Drawing from Kim Kucinskas's ecosystem approach The Vision: Transform from individual organization to network weaver. Focus on connecting, convening, and catalyzing rather than direct implementation. Measure success by ecosystem health, not program outputs. Key Operational Capability: Relationship mapping and network facilitation skills. Need to excel at identifying key stakeholders and designing convenings that create lasting connections. 💰 The Hybrid Model Based on Jenny Hodgson's blended approach The Vision: Combine "warm money" from communities with "cold money" from traditional donors. Build local donor bases while maintaining strategic international partnerships, creating co-owned, co-funded initiatives. Key Operational Capability: Dual fundraising and relationship management systems. Separate but integrated approaches for cultivating community donors and institutional funders, with different strategies for each. ✊ The Movement Model Following Jenna Thoretz's solidarity approach The Vision: Dissolve artificial boundaries between INGOs and local NGOs. Operate as one global civil society, sharing resources and power across geographic lines. Key Operational Capability: Cross-border collaboration and resource sharing platforms. Your organization needs systems for coordinating with international partners and sharing resources fluidly across boundaries. Each model requires different organizational DNA, leadership capabilities, and risk tolerance. Before choosing your path: ✅ Assess your organizational strengths: Which capabilities do you already possess? ✅ Evaluate your stakeholder readiness: Are your board, staff, and communities prepared for this shift? ✅ Consider your context: What regulatory, cultural, and competitive factors will impact your success? ✅ Plan your transition: How will you manage the operational and cultural changes required? Read the full essay series and dive deeper into these approaches. https://lnkd.in/gm_PSfV6

𝐅𝐮𝐧𝐝𝐫𝐚𝐢𝐬𝐢𝐧𝐠 𝐢𝐧 𝟐𝟎𝟐𝟒 𝐢𝐬 𝐭𝐨𝐮𝐠𝐡𝐞𝐫 𝐭𝐡𝐚𝐧 𝐞𝐯𝐞𝐫, 𝐚𝐧𝐝 𝐡𝐞𝐫𝐞’𝐬 𝐰𝐡𝐲... Yet, I’ve seen teams not just survive, but thrive when they turn these challenges into opportunities. - 5 hard truths about fundraising in 2024: 1/ Venture capital is shrinking ↳ VC funding is down 33.6% compared to last year. ↳ Startups are competing harder for less money. 2/ Fundraising takes longer ↳ It now takes 17.4 months to close a VC fund. ↳ Founders need to prepare for a long grind and extended negotiations. 3/ Fewer funds, tougher competition ↳ Only 1,670 VC funds have closed this year, down 40%. ↳ Securing funding now requires more effort and sharper pitches. 4/ North America is slowing, Europe is booming ↳ Europe’s fundraising surged 26.9% while North America dropped 17%. ↳ Geography can play a huge role in your fundraising success. 5/ Big funds dominate ↳ Over 50% of new capital came from just 12 megafunds. ↳ Startups need to be realistic—big funds are chasing experienced managers. But here’s the thing: every challenge in fundraising is an opportunity to get creative, be relentless, and grow stronger. I’ve seen teams rise above these obstacles with persistence and strategy. It’s not about the hand you’re dealt—it’s how you play it. - Here is how I've seen teams overcome these challenges: 1/ Pivot early, pivot smart ↳ Teams that align with growing sectors like sustainability or infrastructure are securing funding faster. ↳ Pivot towards sectors that are drawing capital—secondaries are up 66.4%. 2/ Build relationships before you need them ↳ Start conversations with investors early—way before you need the money. ↳ Founders who nurture relationships for months (or years) close faster. 3/ Focus on niche investors ↳ Instead of chasing megafunds, startups that target smaller, specialized funds often win. ↳ Investors in niche markets are hungry for the right opportunity. 4/ Leverage Europe’s momentum ↳ If you can target European investors or have operations there, you have an edge. ↳ Don’t limit yourself to local capital. 5/ Resilience wins ↳ the teams that push through the challenges, stay adaptable, and stay patient are the ones that succeed. ↳ Longer timelines aren’t a roadblock—they’re part of the process. Looking ahead to 2025, experts forecast a gradual recovery. With inflation stabilizing and interest rates easing, capital flows could start unlocking again. For startups, that means staying lean, staying visible, and being ready to seize opportunities as the market rebounds. Prepare today, because the tide will turn in your favor! Fundraising isn’t about immediate wins—it’s about building long-term partnerships. You’re closer to success than you think. ♻️ Repost and follow Leon Eisen, PhD - Founder, VC, Fundraising Coach for daily fundraising, entrepreneurship and VC insights.    Ring the 🔔 on my profile.

The Funding Crisis is Here: Will Philanthropy Step Up or Stay in Its Bubble? Federal funding is shifting—and not in our favor. The new administration has made clear that public investment in housing, workforce development, climate resilience, and social programs is on the chopping block. DEI? Gone. Grants for community-led initiatives? Shrinking fast. The safety net that nonprofits have long relied on is unraveling. The question now is whether philanthropy will step up—or stay stuck in its own prestige game. 💰 Big Philanthropy’s Obsession with Image Over Impact Too often, funders chase flashy, "disruptive" models rather than investing in what communities actually need. Instead of strengthening food banks, they want to "reimagine hunger." Instead of funding proven workforce training programs, they bankroll expensive thought leadership panels on "the future of work." 🔎 The Vanity of Innovation at the Expense of Service Philanthropy loves a good pilot project—until it’s time for real investment. The result? Local organizations waste time repackaging their work to fit funder trends while essential services go underfunded. What’s needed now isn’t a new model—it’s direct support for programs already at risk. 🚨 Philanthropy Must Shift—NOW With federal dollars disappearing, funders need to move away from performance and toward pragmatism. That means: ✅ Unrestricted, flexible funding—not just grants tied to specific "innovative" projects. ✅ Supporting long-term solutions—not short-term pilots designed to look good in a report. ✅ Backing the unsexy but essential work—because frontline nonprofits shouldn’t have to "rebrand" their life-saving services just to attract dollars. Federal cuts are coming. The real question is whether philanthropy will fill the gap or keep chasing prestige. If you work in philanthropy or nonprofits, what shifts are you seeing? How are you preparing for this moment? Drop your thoughts below. ⬇️

“𝘐𝘯 𝘵𝘪𝘮𝘦𝘴 𝘰𝘧 𝘤𝘳𝘪𝘴𝘪𝘴, 𝘳𝘪𝘴𝘬 𝘪𝘴 𝘪𝘯𝘦𝘷𝘪𝘵𝘢𝘣𝘭𝘦. 𝘛𝘩𝘦 𝘰𝘯𝘭𝘺 𝘲𝘶𝘦𝘴𝘵𝘪𝘰𝘯 𝘪𝘴 𝘸𝘩𝘰 𝘣𝘦𝘢𝘳𝘴 𝘪𝘵.” That line from a recent Stanford Social Innovation Review article stopped me in my tracks: a bold call to action for funders to share the risk with impact enterprises and frontline workers who are navigating the abrupt and callous freezing of foreign aid around the globe. A few thoughts sparked from the piece: 🌟 𝐁𝐫𝐢𝐠𝐡𝐭 𝐬𝐩𝐨𝐭𝐬 𝐞𝐱𝐢𝐬𝐭—𝐛𝐮𝐭 𝐭𝐡𝐞𝐲’𝐫𝐞 𝐧𝐨𝐭 𝐞𝐧𝐨𝐮𝐠𝐡. In conversations with impact leaders, I’ve heard stories of existing funders stepping up and new funders stepping in. But the gap between need and support remains wide. We need more bold moves like: Gates Foundation’s commitment to spend $200B by 2045; MacArthur Foundation increasing its payout to 6%; and Skoll Foundation's $25M emergency fund. 💰 𝐈𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥𝐬 𝐡𝐚𝐯𝐞 𝐚 𝐫𝐨𝐥𝐞 𝐭𝐨 𝐩𝐥𝐚𝐲. There’s $250 billion+ (yup, that's billion with a B!) sitting in donor-advised funds (DAFs)—and growing calls to #HalftheDAF and move more capital now, not later. I'm taking that call to action myself. ⚖️ 𝐔𝐧𝐜𝐞𝐫𝐭𝐚𝐢𝐧𝐭𝐲 𝐛𝐫𝐞𝐞𝐝𝐬 𝐜𝐚𝐮𝐭𝐢𝐨𝐧—𝐛𝐮𝐭 𝐜𝐚𝐮𝐭𝐢𝐨𝐧 𝐜𝐚𝐧 𝐥𝐨𝐨𝐤 𝐥𝐢𝐤𝐞 𝐚𝐛𝐚𝐧𝐝𝐨𝐧𝐦𝐞𝐧𝐭. Some funders are 𝘶𝘯𝘥𝘦𝘳𝘴𝘵𝘢𝘯𝘥𝘢𝘣𝘭𝘺 cautious and concerned about political backlash or unsure where to allocate capital amid global volatility. But as the authors powerfully note, “this restraint feels indistinguishable from abandonment.” 🔄 𝐅𝐥𝐞𝐱𝐢𝐛𝐥𝐞 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 = 𝐩𝐢𝐯𝐨𝐭 𝐩𝐨𝐰𝐞𝐫. Our team at CASE at Duke has long called for more flexible, unrestricted capital—and in crisis, it’s even more essential. The ability to pivot quickly should sit with those closest to the work: frontline leaders delivering life-saving services. 🚀 𝐑𝐞𝐚𝐝𝐲 𝐭𝐨 𝐚𝐜𝐭? I found the article's graphic (see below) powerful with its clear, actionable ways funders can step up today. Grateful to the authors (Dr. Madeleine Ballard, James Nardella, margaret odera Emily Bancroft, Liz Diebold, Jane Leu, Doug Galen, and so many more) for carving out time to write this thoughtful piece while leading through the chaos. 🔗 in comments 🔗

The newly released Giving USA 2025 report offers a critical snapshot of the state of philanthropy: overall donations grew by just 2.1% last year. Foundation and donor-advised fund giving rose, but individual donations stayed flat. This pattern confirms what many of us working in the nonprofit fundraising space already feel, individual donors are harder to reach, retain, and inspire in today’s economy. Inflation, shifting generational values, and donor fatigue are real forces. Without a consistent focus on donor data, analytics and insights coupled with advanced ML and AI, finding the right audience is harder, and more expensive, than ever. So where do we go from here? The best fundraising organizations aren’t just adjusting tactics they’re rethinking the donor journey and their marketing toolset. They're combining deep behavioral segmentation, AI-driven predictive analytics, and mission-centered storytelling to show donors their impact more clearly and personally. It's not just about “raising more” it’s about cultivating trust, relevance, and long-term engagement. I’d love to hear how your organization is navigating this. Are you seeing similar trends? What changes are working for you? https://givingusa.org/ #NonprofitFundraising #GivingUSA #DonorEngagement #DataDrivenFundraising