Traditionally, a new year dawns with the air of possibility: it’s a time to refresh, take stock and renew our focus on personal and organizational goals. But with a new administration shaking things up in Washington and geopolitical tensions on a rolling boil, it’s clear that 2025 is hitting differently.
For many nonprofit leaders, 2025 brings heightened precarity as familiar challenges are overlaid with concerns over how to respond to new directives from Washington. For others, uncertainty is the new normal, and they enter the new year with a nimble mindset and strategic foresight to navigate turbulence.
Here is what we think nonprofits can anticipate as 2025 continues to unfold, and what they can do to prepare, adapt and thrive.
1 | Beyond Business as Usual: Creative Revenue Strategies
The Landscape:
The financial outlook for nonprofits remains challenging. Operational costs are up, and philanthropy is up-and-down. Even as demand for nonprofit services rises, the real possibility of spending cuts at the federal level would have a significant impact on nonprofits, which in 2019 drew $.80 for every dollar earned through grants or contracts for services (National Council of Nonprofits 2019).
It’s not all gloomy. Many nonprofits entered 2025 in a good position: according to the Center for Effective Philanthropy, most nonprofits reported a balanced budget or surplus in 2024 (CEP 2024). A strong Giving Tuesday in 2024 signals a potential rebound in individual giving, and analysts continue to be optimistic about the Great Wealth Transfer and its potential to revitalize philanthropy at this critical time.
How You Can Navigate It:
Be Entrepreneurial: Diversify revenue streams with memberships, fee-for-service programs, or retail ventures. Invest in planned giving programs and explore opportunities with donor-advised funds that may emerge under the new administration.
Stay Connected: As S&W President Scott Schultz reminded us in this article in response to the federal funding freeze, donors need and want to hear from you, in good times and bad. Engage younger, values-driven donors through social media and digital marketing. Foster deeper connections through storytelling and shared experiences like volunteering.
Know Your Numbers: Communicate your financial position clearly to show stakeholders how their contributions drive impact. A strong narrative that connects the dots between money and mission helps your stakeholders understand how they can most effectively contribute toward desired impact.
Kick the Tires: Use financial models to assess risks and opportunities. For example, a recent S&W client in the environmental sector introduced a membership model to reduce reliance on government contracts while fostering mutual benefits for participating organizations.
2 | Prioritizing Wellness Amid the Great Burnout
The Landscape:
Since the pandemic, many nonprofits find themselves in a cycle of increased demand, staff burnout and turnover. The 2023 Nonprofit Workforce Survey revealed that nearly 75% of nonprofits have job vacancies, with a significant majority of those in vital service provision roles. With staffing vacancies and increased demand for services, nonprofit leaders share a collective concern about burnout and its impact on ability to achieve their organization’s mission (CEP 2024). A tough economy can lead to tough decisions, as revealed by one nonprofit leader: “We have cut staffing, which has addressed budget issues but not burnout” (CEP 2024).
Amid a workforce shortage, wellness has emerged as a priority for many of our clients. Fostering a culture of support and well-being can have a direct and positive impact on employee resilience, help retain talent and ensure the long-term effectiveness of their services.
How You Can Navigate It:
Stay Healthy: Prioritize staff well-being through initiatives like wellness committees, personal safety plans, and well-being policies. Simple measures like offering wellness stipends or flexible mental health days can significantly boost morale and retention.
Stay Nimble: Flexible work arrangements, such as job sharing or four-day workweeks, can boost satisfaction and productivity. By piloting these policies, you can boost employee retention and attract job applicants.
Collaborate: Partnerships with other organizations or the private sector can help fill talent gaps and provide access to specialized expertise. Collaborations can also reduce operational burdens, allowing nonprofits to focus on their mission.
3 | Change at the Top: Succession Planning
The Landscape:
Turnover and staffing shortages aren’t just having an impact on frontline staff: leaders are moving on, too. The past few years have seen a rash of turnover in the executive suite: over 20% of S&W’s strategic planning clients since 2023 have been on the cusp or in the wake of a leadership transition. Leadership transitions are happening at the board level, too, placing increased pressure on executive directors to fill vacancies and sustain board-cultivated donor relationships.
How You Can Navigate It:
Make a Succession Plan: Plain and simple. A solid succession plan can be your organization’s lifeline, yet only 29% of nonprofits have one in place. Recent S&W clients have focused on creating succession plans for all levels of their organizations to mitigate the effects of turnover.
Invest in Leaders: Leadership coaching and board development programs can bridge gaps in experience and ensure continuity. Programs like S&W’s ElevateNP offer comprehensive training and coaching for nonprofit leaders and volunteers.
4 | Technological Advances and Disruptions
The Landscape:
As key stakeholders seek to understand impact, nonprofits are increasingly relying on data to evaluate and report on programs and services, optimize resources and steward their donor bases effectively. According to FreeWill, a social-good technology platform specializing in planned giving solutions, nonprofits are adopting AI at a faster rate than for-profit counterparts, putting it to use in areas of fundraising, communications and to increase overall productivity. The rising demand for clean, useful data and AI expertise elevates the importance of upgrading data tracking systems, upskilling staff or recruiting specialized talent.
How You Can Navigate It:
Know the True Cost: Fully account for the expenses of new technologies, including implementation and staff training. If you’re part of a larger organization, it’s important to consider how these changes are rolled out across locations and subsidiaries.
Be Cybersecure: Cybersecurity is a great threat to nonprofits. Invest in staff training, phishing prevention, and two-factor authentication to protect against cyber threats.
Create an AI Policy: Develop guidelines for integrating AI and data technologies, ensuring transparency to maintain trust.
5 | Mission Forward: Stay on Course
The Landscape:
Today’s shifting landscape demands adaptability and agility as nonprofits seek to address complex, intersecting challenges while facing increased competition for funding, heightened oversight and even scrutiny. Within this context, it’s more important than ever to stay mission-focused, to understand and be clear about an organization’s purpose and ensure programs and strategies align with core values. In maintaining clarity and focus, organizations can adapt to change while preserving public trust.
How You Can Navigate It:
Stick to Your Story: Create a compelling and clear narrative about your organization and what it stands for. Be clear in communicating your mission, and prepare staff, board and all volunteers with the language and materials they need to communicate your story effectively. Jessica Sharp, Co-Founder and Principal of Maven Communications says: “I’ve seen it time and again: the nonprofits that emerge strongest from controversy are those that already had a clear story to tell and stakeholders who understood exactly what they stood for.”
Lean on Your Community: You’re not alone! Collaborate with advocacy groups and professional bodies to access support and expertise. Cross-sector insights from consultants like S&W can provide you with innovative strategies to navigate challenges.
Heart to Heart: From DEI to free speech, there’s no shortage of issues that seek to divide us in these polarizing times. It’s important to navigate such topics with intentionality, mindfulness and input from your stakeholders. By fostering open dialogue and promoting inclusive decision-making where it matters most, organizations can stay true to their communities and build consensus around sensitive issues.
Strategic Planning: The Ultimate Resolution
In times of uncertainty, strategic planning is more critical than ever. It helps organizations identify priorities, allocate resources effectively, and remain agile in a changing landscape. An effective strategic plan allows you to:
Define your destination: Clarify where you are, where you want to go and how to get there.
Surface key issues: The planning process highlights challenges and opportunities, enabling you to make informed data-driven decisions.
Create flexibility: A strong strategic plan is adaptable to shifting circumstances, providing you with a foundation for resilience.
While planning requires time and investment, it’s a crucial step to ensure stability and success in an unpredictable 2025. Organizations without a strategic plan risk being caught unprepared for the challenges and opportunities ahead. For nonprofits, the best resolution this year is to embrace planning as a pathway to strength, clarity and impact.
Schedule your consultation today and position your nonprofit for a strong and impactful 2025. Availability is limited, so don’t miss this opportunity to gain fresh insights and tailored strategies for your organization’s success.
Visit https://schultzwilliams.com/strategic-business-planning/
