Building Nonprofit Resilience in Times of Uncertainty

We're nearly sixty days into 2025, but it feels more like 120 days due to the current administration's flood of executive orders and fear mongering. The federal funding freezes—and threats targeting organizations that play crucial roles in the liberation and protection of marginalized and at-risk communities—have made the rapid developments of the past two months particularly distressing. Many may feel they're just trying to keep their heads above water. We understand that you're working hard to serve your communities during this period of uncertainty, and we hope you are also ensuring your well-being and that of your organization.

To provide some support, this month's Zine features resources to ensure that your organizations have what they need (or get access to what they need) to thrive and continue to fight for justice and a liberatory future.

The following is an overview of how your organization can build resilience during these times.

IPMF grantees can reach out to us at info@independencemedia.org with any questions.

Assess Your Organization’s Financial Stability

• Check and monitor your cash flow and liquidity.
  Understanding your financial position is essential to preparing for any disruptions. If funding were to stop today, how long could your organization sustain operations with its current cash flow? One way to measure this is by calculating your Liquid Unrestricted Net Assets (LUNA):

  (Net Assets Without Donor Restriction – Fixed Assets) ÷ Monthly Expenses

  A higher LUNA ratio means more flexibility to navigate uncertainty. In addition, take time to evaluate your cash reserves and identify upcoming expenses that can be pushed back such as merchandise or equipment. While it may be tempting to cut all costs, ensure that essential expenses—such as payroll taxes—remain a priority. Managing payables wisely and delaying non-essential spending can help maintain cash flow without hurting operations.

• Realistically Manage and Address Barriers to Cash Flow
  If your organization has experienced delays in government contract payments, it may be safe to expect more disruptions for the foreseeable future. Keep your cash flow projections updated and prepare for potential funding gaps.

  Consider your banking relationships—does your organization have access to a line of credit? If so, make sure you will have continued access to that line of credit. This is a great time to engage board members in the discussion and utilize any expertise that may have in this area. Also, get involved with advocacy coalitions that could help ease issues with late payments and related problems wherever possible.

  Additionally, review internal restrictions on reserve funds. If your board has imposed limitations on using certain funds for operating expenses, now is the time to initiate discussions about when and how to adjust policies to provide financial flexibility.

• Evaluate and Measure Your Revenue Risks
  Financial sustainability depends on having a diverse revenue base. Analyze your funding sources—what percentage of your budget relies on government grants, individual donors, foundations or other sources

  If your funding is concentrated in one source, such as a single foundation providing 90% of your revenue, your organization is at greater risk (see our tipping guide for a deeper dive into this issue). Diversifying your organization’s revenue streams can help reduce its vulnerability to funding cuts or policy changes.

Building Networks & Advocacy

• Stay Informed and Strengthen Your Network
  More than ever, it’s important for you to be connected to as many local and field networks that may impact your work so you are looped in on all the information related to changes in revenue streams and regulatory schemes as soon as possible. Things are changing quickly. Even if you don’t have federal funding, state and local funding may come from the federal government and be impacted by these changes. Additionally, as the changes flow through the economy, there may be an effect on individual donations or fee-for-service programs.

  Engage with peer organizations to share insights and strategies. Keeping informed about funding trends, advocacy efforts, and policy changes will help you anticipate challenges and adapt more effectively. This is also an important moment to strategically share your stories to increase your visibility to the community and inform others about your organization’s important contributions to a liberatory future.

• Leverage Existing Support Networks and Advocacy Efforts
  Nonprofits don’t have to face this period of uncertainty alone. Organizations like state nonprofit associations (i.e. Pennsylvania Association of Nonprofit Organizations or the New Jersey Center for Nonprofits) and national groups like the National Council of Nonprofits (NCN) provide legal guidance, advocacy resources, and updates on how Trump’s policies and executive orders are affecting the sector.

  NCN has also been acting on behalf of the sector. For example, it filed a motion for temporary restraining order, and momentarily blocked the Trump administration’s “pause” on federal grants and loans.Staying engaged with these networks can provide valuable support and resources for navigating uncertainty. Click here to sign up for NCN’s free email updates.

• Communicate Clearly and Transparently
  The current uncertainty has created anxiety for staff, board members, donors, and community stakeholders. While it may be tempting to double down and withhold certain information, transparency, built trust, and acknowledgment of the personal stresses caused by this situation are key to maintaining trust and engagement.

  Rather than making promises about future funding or program stability, invite stakeholders to participate with you in finding the way forward while sharing what you do know, acknowledging what you do not know, and providing regular updates. Additionally, if you have the capacity, consider increasing the frequency of updates, so staff and key stakeholders are informed and know the latest information. Establishing a predictable communication routine can help reduce collective anxiety and build confidence in your organization’s leadership.

Moving Forward

These uncertain times can be overwhelming, but nonprofit leaders and their boards can frame this as an opportunity to build resilient organizations. By assessing financial risks, building strategic partnerships, and advocating for their sustainability, organizations can continue to fulfill their mission and serve their communities, especially in challenging times.

IPMF grantees that have questions about how to assess their organization’s financial standing can reach out to us at info@independencemedia.org.