Nonprofit organizations are facing tremendous uncertainty under the second Trump administration. Policy shifts, executive orders and regulatory changes are creating ripple effects that impact funding, operations and programming. The funding structures for nonprofit organizations often limit the ability and capacity of organizations to nimbly respond to external shifts. And, under the current political context, it is challenging to anticipate how changes in the field will affect each organization. Nonprofit leaders are in a better position to meet the needs of a changing field and weather the current challenges by coming together to define innovation and solutions that benefit both parties. With over 20 years of experience supporting nonprofits with strategic planning, we know now is not the time to abandon strategic planning efforts but to adjust them to navigate competing demands and make quick decisions. Nonprofits need to come up with and implement shorter, more adaptable strategies if they want to succeed in the coming months. Planning in shorter cycles, rather than the typical 6-8 month strategic planning processes, is crucial as it allows organizations to respond swiftly to changing circumstances. Nonprofits must also prepare for multiple scenarios—some promising (like a surge in demand for organizations that support immigrant students) and others more daunting (such as eliminating resources for research and program evaluation). These adaptable approaches presume a more unpredictable and fluid multi-year timeline, produce strategic plans that enable nonprofits to be agile and flexible, and help them better manage and seize opportunities as they arise. Below, we share more on our Peer Learning Collective offering to support nonprofits through adaptive strategy planning in a community with similarly situated organizations.
Navigating The Path Forward
In today’s environment, nonprofit organizations cannot wait for stability to arrive. It’s about forging forward with adaptive approaches to create stability in times of ambiguity. Nonprofit leaders need to make tough but necessary decisions, such as:
Prepare for the good, the bad, and the ugly of a variety of scenarios. The future is uncertain but we have clear signals about the priorities of the current administration. In order to avoid overcompliance with non-legal orders, it is essential for businesses to comprehend their legal risks, as stated in our resource in the series Facts in the Flood. Organizations must take actions to balance legal risk against mission risk. While hope is important, now is not the time to be overly optimistic. Engage seriously as your organization asks, “what impact will X actions have on our organization?”
Streamline operations, and when necessary, reduce costs. We know that many nonprofit leaders are already thinking about the pressure to aggressively diversify funding sources. This might involve seeking new grants, exploring fee-for-service models, or tapping into reserves to cover immediate financial shortfalls (though this should be done cautiously to avoid jeopardizing long-term stability). Organizations should also explore how leveraging technology and innovation might enable them to cut costs, automate processes and improve efficiency without sacrificing impact. Another really tough consideration is to reassess staffing. While difficult, strategic reductions or role reconfigurations may be needed to ensure financial sustainability.
Consider mergers or strategic partnerships. Collaboration with like-minded organizations can increase impact, maximize resources and increase resilience. Collaboration can also take multiple forms, from a partnership to co-develop and offer services, to merging/combining with another organization, or acquiring a partner or being acquired (e.g., a larger organization taking over a smaller organization). In some cases, sunsetting an organization in a responsible way–preserving intellectual property and ensuring resources are passed on effectively–may be the best long-term move.
Education First has worked with a range of nonprofits to plan for multiple scenarios, streamline operations and diversify revenue, and has supported organizations to merge and sunset. The key across all of these scenarios is being proactive, not reactive.
Getting Through it Together
Navigating this landscape doesn’t have to be a solo journey. Education First, is launching the Peer Learning Collective, to support nonprofit leaders tackle the uncertainty of today’s environment alongside leaders from other organizations. Through specific tools that support strategic analysis, scenario planning, financial modeling, as well as co-learning and collaboration, participants will build the knowledge necessary to safeguard or adapt their organizations using frameworks from Education First’s Facts in the Flood. In addition, participants will gain access to specific tools, resources and coaching built on Education First’s Coherence Framework to build focus and coordination, remove barriers, address diverse scenarios (including analysis of the changing federal landscape) and conduct financial modeling. Leaders of organizations with an equity focus will receive support to navigate internal culture and dynamics, and make strategic decisions about how they show up externally (holding firm vs. quietly continuing their work).
