Significant shifts in federal and state policy and regulatory requirements are reshaping how nonprofits operate. These changes are felt quickly in how organizations run their systems, carry out their processes, and meet compliance requirements. The real challenge is not knowing that policies have changed, but having the capacity to implement them effectively.
For most organizations, development operations is the first place this shows up—when changes in funder requirements, gift documentation, or notifications make past practices no longer workable. Development operations translate policy into practice and are the first team that must act when requirements change. Positioning this team as a reliable, strategic partner provides organizational stability during periods of regulatory and operational change.
Why Should You Pay Attention?
Policies place a spotlight on your operations and can reshape the context in which you operate. Your development operations team turns policy into practice and protects the integrity of your organization. We see these impacts appear in three key ways:
- Increased scrutiny – Organizations must be even more audit-ready as policy shifts drive new compliance requirements. This includes data collection, use of funds, reporting standards, and donor consent.
- Operational challenges – Policy shifts may require compliance changes and reassessment across systems and workflows, disrupting day-to-day operations, including reclassification, restriction, or temporary holds on certain funds.
- Strategic visibility – Opportunity for development operations to lead with clarity and consistency, building trust across the organization.
Operational Impact
Development operations teams are no longer just about processing gifts. The importance has shifted to how your policies, procedures, and documentation hold up to greater scrutiny.
Your development operations team must have a seat at the table in organizational discussions where data is concerned. As more third-party vendors—including AI-enabled tools—are introduced, organizations face decisions about how those vendors are using your donor data. This requires reassessing how your data is collected, stored, shared, and used. Development operations teams translate policies and regulations between front-line fundraisers, finance, and legal departments.
We are seeing organizations pause gift processing, revisit donor communications, or escalate routine decisions because internal policies have not kept pace with external change. In some cases, this has meant gifts are left unprocessed, donor questions go unanswered, and there is indecision on how to proceed with unclear internal protocols.
For most organizations, the operational impacts are seen in the following areas:
- Gift Processing & Compliance – Policy shifts often surface here first. Increased scrutiny may affect documentation related to federal funding, donor intent, and gift acceptance policies.
- Donor Data & Privacy – Federal and state-level scrutiny of how organizations handle donor biographical and identifying data continues. Organizations are reassessing what data they collect, why it is collected, and how it is used—often reducing the amount of data collected and aligning practices with evolving state privacy policies so donors clearly understand how their information is used.
- Fundraising Strategy & Institutional Response – Organizations may enter periods of reassessment, pause, or restructuring to ensure compliance with new legal requirements. In some cases, funds may be frozen and donor-facing narratives may need to shift accordingly.
Managing Risks & Finding Opportunities
Development operations teams can proactively mitigate risk by identifying and addressing gaps in procedures and protocols before they disrupt fundraising efforts. Often notified early—alongside legal and finance—development operations teams can connect with staff across the organization to stay ahead of potential issues.
This is an opportunity to elevate the visibility and strategic role of development operations and position the team as a partner that helps the organization prepare for what comes next—not simply react to these significant shifts in policy.
Steps to Prepare Your Organization
If your organization is navigating shifting policy and compliance expectations, consider the following actions:
- Review fund and data policies
- Audit processes and workflows
- Review acknowledgement language for compliance
- Reassess how donor data is collected and used
- Clarify documentation standards
- Streamline legacy workflows
- Build cross-functional awareness
- Understand why data is coded the way it is
- Centralize where policies live
- Document internal changes for institutional records
Before moving ahead, pause to reflect on where you are today. Start by asking these questions:
- What can you do today to build resilience and structure within your organization?
- Do you have systems in place that are flexible by design to respond to change?
When policy is vague, organizations react. When policy is clear, organizations are ready to respond.
To learn more about how we can help, contact Kelly Grattan or explore our Development Operations page.
