Welcome back to Ask a Nonprofit Expert, NPQ’s advice column for nonprofit readers, by civic leaders who have built thriving, equitable organizations.
This series offers Leading Edge members a new benefit: the opportunity to submit tough challenges anonymously and get personalized advice. In this column, we’ll publish answers to common questions to strengthen our entire community’s capacity.
In today’s issue, Rochelle Jerry, CFRM, answers a reader’s question about pivoting from relying on federal funding to mission-aligned private donors.
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Dear Ask a Nonprofit Expert,
I’m trying to figure out how to do a funding pivot from relying on federal funds to that of finding mission-aligned private donors.
Sincerely,
Figuring It Out
Dear Figuring It Out,
Private donors want to see themselves as partners in impact.
First, I want to affirm what you’re feeling. Relying heavily on federal funds can feel like both a blessing and a limitation—providing stability for a time, but leaving you vulnerable when policies, priorities, or budgets shift. The fact that you’re thinking about a pivot shows real foresight and leadership.
When moving toward private, mission-aligned donors, here are a few strategies to ground your next steps.
1. Reframe Your Case for Support
Private donors want to see themselves as partners in impact. Take the language you’ve used in federal reports—outcomes, compliance, benchmarks—and translate it into a compelling story about people and community transformation. Ask: What problem are we solving? How does our mission uniquely address it? What happens if we don’t? That’s the narrative that resonates with individuals, foundations, and even corporations, because they want to see how they can contribute. Remember that fundraising is an optimistic profession that serves society well, especially in times of distress.
2. Start with Who You Know
Your best private donor prospects are often already in your circle. Look closely at your current champions: staff, board members, volunteers, beneficiaries, and community partners. Encourage your board to open doors to peers, professional networks, or corporate connections. These warm introductions shorten the path to trust.
3. Plan for Crises Before They Arrive
One of my favorite reminders comes from the book Achieving Excellence in Fundraising, in Chapter 7 (“Fundraising in Challenging Times: Crisis, Survival, and Transformation”): If we didn’t face crises, there would be little demand for fundraising. Complex crises strike at the core of strategy, which is why it’s essential to build consistent, intentional engagement with current and potential donors now. When the power, purpose, and perspective of your mission are always clear and relevant, your donors will understand what’s critical when a crisis hits—and they will be more willing to step up with support.
4. Diversify Your Private Giving “Portfolio”
It’s also key to think beyond individual donors alone, or any single donor type, for that matter. A strong mix might include:
- Major gifts from individuals who deeply connect with your mission
- Corporate partnerships where goals and brand alignment matter
- Foundation grants that share your program focus
- Community giving campaigns (like GivingTuesday, creating your own giving day, or peer-to-peer)
5. Show the Intended Impact with Confidence
Federal funding taught you to track outcomes meticulously—this is an asset! Share that same data with private donors but wrap it in stories. For example: “95% of our clients achieved housing stability, and here’s Maria’s story of hope behind those numbers.” The blend of head and heart inspires investment.
6. Take It Step by Step
Build your revenue streams steadily. Celebrate each milestone along the way.
If you’re seeking sources for a deeper dive, here are some book recommendations:
The Sustainability Mindset by Steve Zimmerman and Jeanne Bell, which helps leaders plan revenue diversification with clarity and accessible framework.
Achieving Excellence in Fundraising, 5th ed. (see Chapter 7) for perspective on navigating crises and positioning your mission for resilience.
Know this: You already have what it takes. Your mission is strong, and your ability to secure federal funds shows credibility. With intentional storytelling, wider relationship building, and steady diversification, you can attract private donors who will fund not only your programs but your long-term vision.
And don’t think of this as starting over. You’re building on a solid foundation. One step at a time, you’ll get there.
All the best,
Rochelle
