Halfway through the year, many nonprofits find themselves in a familiar rhythm. Fiscal year-end deadlines have passed, schedules (hopefully) adjust around vacations, and direct donations tend to quiet down. For charitable organizations running intense fundraising campaigns from January through June, July feels like a moment to breathe. It is also one of the best moments to think strategically about funding.
The current funding environment has made one thing clear: organizations that depend heavily on a single revenue stream carry real risk. Federal funding shifts and changing policy priorities have prompted many nonprofits to take a harder look at how their portfolios are built. The question is not whether to diversify, it is how to do it well, often with limited resources.
Diversification in grant funding does not mean pursuing every available opportunity. It means building a pipeline of revenue that reflects your mission, capacity, and the relationships you have stewarded. That might involve state and local government funding, foundation grants (including family, community, and corporate foundations) and community partnerships. The right combination looks different for each charitable organization.
July and August are ideal months to keep building groundwork. Cultivation conversations happen more easily with plenty of time before funder deadlines are imminent. Stewardship of current funders deepens over time, and systems for tracking opportunities and outcomes can strengthen.
At PSI, we help nonprofits assess where they stand and build toward a more resilient funding future. The award is won together, and sustainability starts with strategy.
June follow-up notes:
- Charitable organizations managing federal funding are awaiting the final rules for Uniform Guidance (2 CFR Part 200) following closure of the comment period on July 13.
- OMB received 496,000 public comments in response to proposed changes, 94-95% of which were in direct opposition.
- Trusted sector leader Rachel Werner outlines actionable steps right now in her MyFedTrainer blog post, “The Comment Period Has Closed. What Should Your Organization Do While You Wait?”