How companies can help nonprofits navigate funding uncertainty

In turbulent times companies can offer nonprofits the sustained support they need — here’s how you can take action now

Published on February ?, 2025

As confusion over the U.S. federal funding freeze continues, nonprofits and those they lift up are uncertain and concerned about the future. But companies wondering how to support nonprofits can take steps to help. The role of corporate and individual donors has never been more crucial, and nonprofits will rely on sustained giving to navigate the turbulence of the days, weeks and years ahead.

Nonprofits and companies have long been successful partners in driving social change — the combination is an extremely powerful social support system. This is yet another opportunity, and a responsibility, we can help tackle together by taking strategic action.

The risk to the nonprofit ecosystem

There’s a lot of unpredictability regarding the impact of federal funding cuts on nonprofits. Here’s what we know: According to the CEO of nonprofit data resource Candid, Ann Mei Chang, 30% of larger nonprofits in the U.S. receive federal funding, amounting to over $300 billion annually. That funding supports everything from food security, to health care, housing, and more — issues our clients and their employees are united on when it comes to offering their support.

Freezes and policy changes related to this funding put incredible pressure on nonprofits operating across the U.S. and even globally. Uncertainty of this magnitude affects short- and long-term cash flow management and budgeting, resulting in impacts to staff and even the ability to offer services.

The potential impact for nonprofits:

A disproportionate impact on underrepresented and marginalized communities that are being specifically targeted through these proposed budgetary cuts. This represents 69% of Benevity’s giving volume, according to a recent analysis conducted by Benevity Impact Labs (not yet published)
Potential loss of 501(c)3 status for organizations that work in targeted fields
Spillover effect of organizations tasked with taking on greater services to compensate for organizations who lose funding or go out of business
Significant strain on limited nonprofit resources that will need to be dedicated to operations and legal defense — this will require money and skills

6 actions companies can take right now

As corporate citizens who care deeply about making a positive impact, we are all in this together. Now is the time to take action and show support for our partners. Here’s how to support nonprofits:

Remove granting restrictions so your nonprofit partners can have discretion over how to best use the funds. Needs and priorities may shift as policies shift, and unrestricted granting empowers nonprofits to be flexible and agile with how resources are used.
Offer pro bono services, sharing expertise and experience through offers like legal advice, financial forecasting, skills-based volunteering and any other relevant aid you can provide.
Run an employee giving campaign at your company, encouraging people not to wait to help the nonprofits they care about. If you’re a Benevity client, access our ready-to-go News Item about the risks associated with a federal funding freeze, available through your admin dashboard, to help you quickly set up your own campaign.
Encourage ongoing support through recurring donations. Not everyone can give a lot of money upfront, but giving on an ongoing basis, including donating with every paycheck through payroll, provides continuity and stability for nonprofits, which goes a long way.
Amplify employees’ impact through donation matching, and consider an increased matching offer of 2:1 or even 3:1 for a set period of time, if you have the budget.
Join the conversation. The power of collaboration cannot be understated. Talk to your nonprofit partners about other ways you can support them. Reach out to your peers to share questions, advice and strategies on how to ensure sustained giving, like our clients are doing in the Benevity Community through events like Huddles.

3 ways nonprofits can increase visibility

Without nonprofits there would be no Benevity, so if you’re a nonprofit looking to attract more engagement, we’re here to help. There are immediate opportunities you can take in Benevity’s ecosystem to help mitigate this funding uncertainty. Here are some best practices and resources:

Connect with the corporate partners you already have and see if they're willing to run a giving campaign or fast-track their granting commitments. They can be your biggest advocates.
Ask for specific expertise or pro bono help that your corporate partners may be able to offer. It’s not always clear what kind of help a nonprofit might need — tell them how they can best support you.
Update your profile on the Benevity Causes Portal to share your mission and needs to reach more potential supporters, and consider creating a specific project or volunteering opportunities to focus support.

The power of the collective

Our client community has shown us again and again the power of collective action in times of need. Over the last 16 years, they have directly supported over 470,000 nonprofits worldwide, creating meaningful change — from social justice to climate action, a global pandemic to wildfires, and geopolitical unrest and war.

Working together to help sustain the vital efforts of nonprofits — who we all rely on to build safe, sustainable and just communities — is one way leaders and their employees can be a stabilizing force right now, demonstrating the impact corporations can spur when people need it most.

If you’re a Benevity client, reach out to your CSM for guidance on taking action today.