Strategies for nonprofits to navigate uncertain times: Designing for the next normal

Vince Lecce//August 8, 2025//

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Recent economic shifts have created challenges not only for philanthropic individuals that have to make decisions based on their discretionary income, but also for organizations that have to engage with those donors to support their activities. In a region like Rochester, nonprofit organizations are the backbone of the community—powered by people who strive to do good. As economic conditions shift, there is a growing opportunity for nonprofits to consider strategies that optimize resources and strengthen their ability to serve the community over the long term.

Key Private Bank recently hosted a panel addressing the hardships facing nonprofits in the current political and economic climate, featuring community and philanthropic specialists who shared their expertise and insight on strategies for navigating uncertain times.

Remobilizing resources and triaging needs

Simeon Banister, President & CEO of Rochester Area Community Foundation suggested that triage thinking—prioritizing what’s most urgent and impactful—can guide nonprofits through challenging moments like these. It can be valuable for organizations to reflect on how their resources are currently allocated and consider whether shifting them could better align with the most pressing needs of the communities they serve. He noted that the Community Foundation retired several of its initiatives that had been important, but had yet to show strong outcomes. His suggested approach was to observe trends in community data using tools like ACT Rochester, and to conduct deep community listening. By strengthening relationships within the community, nonprofits will be able to leverage direct experience from those closest to the opportunities to guide decision making.

Understanding how market conditions directly impact your organization

There’s no denying that this is a challenging environment—both politically and financially. However, it is critical to determine the difference between what might happen and what is happening. Banister reminded nonprofit leaders not to over-index on what might happen, saying that fear often undermines innovation—and we’ll need innovation to work through these difficult times. In cases where grants are canceled, nonprofits can benefit from making opportunities to engage and educate donors. Many nonprofit organizations are immediately impacted by budget cuts, making this the ideal time to advocate for and explain the real costs of operation.

Gaining a clear understanding of market trends and policy changes can help nonprofit leaders assess how external factors may affect their organization and identify strategies to take appropriate actions. KeyBank Institutional Advisors National Director of Philanthropic Advice Cindy McDonald suggested that nonprofits utilize the Federal Register as a resource to stay up to date on executive orders. Banister added that leaders should be aware of the flow of resources coming from the government and how the allocation of those resources will impact local nonprofits.

KeyBank Institutional Advisors National Director of Institutional Investments Ken Senvisky explained that market conditions are leading to inflation, which adds to both nonprofit and donor costs. This situation is not ideal for decision makers and organizations that need direct support. Uncertainty within the market has led to volatility, and this has a direct correlation to donors’ ability to give. He continued to share that despite the current state of affairs, the S&P 500 is up, so donors are sitting on embedded capital gains within their portfolios. This means that now is an opportune time for nonprofit organizations to start reaching out and initiating discussions about different gifting strategies.

Collaboration

The conversation around nonprofit collaboration can often be misleading, focusing on trying to find efficiency for efficiency’s sake. Banister mentioned that the conversation should instead be oriented around what can be possible and what outcome can be achieved through partnerships and finding new ways of working together. He emphasized the importance of reflecting on what best serves the public good and being open to shifting approaches that align with evolving priorities.

Navigating uncertain times

Although market uncertainty is creating volatility, Senvisky reminded nonprofit leaders that organizations have been in situations like this before—most notably during the pandemic. He recommended drawing on skills and techniques that were learned during that time. The work done during the pandemic was good preparation for the current economic situation. Organizations were forced to learn how to be flexible, how to collaborate, and how to form quick responses under pressure.

Senvisky urged leaders to be understanding of each donor’s position. Embracing donor education is another effective strategy to enable them to make the best donation decisions. McDonald encouraged nonprofit leaders to engage with donors as they make these decisions, especially as they start to reevaluate their own decision-making process. She advised nonprofit leaders to make sure that when a gift does come in, they are prepared to utilize it to the best of their ability.

Senvisky proposed having a contingency plan in place for all leadership within the organization and to be flexible in the face of regulatory scrutiny. The best way to prepare for these circumstances is to ensure everything in your organization is up to date, and to be nimble and able to adjust if regulations were to change. In the case of an emergency, nonprofits should be prepared with succession plans and quick responses. The experts agreed that having a diverse board is an effective way to navigate through challenging times. People with diverse backgrounds respond to challenges differently, and the experts encouraged nonprofits to have turnover on the board and to embrace younger generations.

Know an organization’s value

Banister stressed the rising need to articulate the stakes of what nonprofits are doing to improve the community. He encouraged leaders to be vocal and firm about the value nonprofits bring to society and to reposition the nonprofit sector as an integral force for the public good. With this conviction around our sector’s value, Banister sees an opportunity to help businesses and government understand how best to show up and align with nonprofits to produce better outcomes. He wondered aloud if “nonprofit” was even the best term to describe the sector, since “they certainly do more than just not make profit.”

All three experts agreed that it is critical to gather information and claims that support the work nonprofits do. As data is reported, it is best to provide transparent measurements of the organization’s impact in real time and be clear about the work’s relevance to the urgent needs in the community. McDonald enforced the importance of having an elevator speech about the nonprofit’s impact ready, as donors will react to strong data and will want to help immediately.

Banister closed with this thought: that moments of change are born out of response to crisis. How organization leaders deal with crisis and the choices they make presents a chance to design the new benchmark of what “normal” looks like. Local nonprofit leaders—take this challenging time as an opportunity to design your new normal.

Vince Lecce, CIMA®, CWS®, is KeyBank Rochester Market President and Team Leader for Key Private Bank in Rochester. He can be reached at (585) 238-4107 or [email protected].

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