What Nonprofit Leaders Need to Know About Philanthropy Right Now

The philanthropic landscape is always changing — but some of the shifts happening right now are more significant than most. Here's what we're seeing, and what it means for your fundraising strategy.

Funders are pulling back on multi-year commitments.

For a few years, multi-year general operating support was having a moment. Many funders — particularly larger foundations — leaned into flexible, trust-based grantmaking as a response to the pandemic and the racial justice movement. That trend is moderating. Nonprofits that built budgets around multi-year commitments are finding those commitments harder to renew. The lesson: diversify, and don't assume last year's funding model will hold.

Relationship-based giving is becoming more important, not less.

As competition for foundation dollars increases, the organizations winning grants are increasingly those with established relationships — not just strong proposals. Funders are inundated. They give to organizations they know and trust. If you're not investing in relationship-building alongside grant writing, you're leaving money on the table.

Small family foundations are an underleveraged opportunity.

While major foundation giving gets the most attention, Minnesota's small family foundations collectively distribute millions of dollars annually — much of it to organizations they have personal connections with. These funders tend to be relationship-driven, flexible, and loyal to grantees they trust. Most nonprofits don't pursue them nearly enough.

Funders are asking harder questions about impact.

The bar for demonstrating outcomes has risen. Funders want to see not just what you did, but what changed because of it. Organizations that have invested in results measurement — and can speak clearly about impact — are better positioned than those that can't.

The sector is consolidating.

Smaller nonprofits are under increasing financial pressure, and some are merging, closing, or restructuring. For funders, this creates both risk and opportunity. For nonprofits, it's a reminder that financial sustainability isn't optional — it's a strategic imperative.

Staying ahead of these trends requires more than awareness. It requires adapting your fundraising strategy, your funder relationships, and your organizational capacity to meet the moment.

That's what Access Philanthropy helps organizations do. If you'd like to talk through what these trends mean for your specific situation, schedule a free 30-minute chat with one of our advisors.