Fiscal Year Planning for Nonprofits: Funding and Marketing Priorities to Drive Growth

I decided to write this blog because July 1 isn’t just another date on the calendar. For many organizations, it marks the start of a new fiscal year and the countdown on revenue goals begins. It’s a crucial moment to step back and decide how you'll respond to the challenges and opportunities ahead.

But I’ll be honest: there’s never been a more fascinating and frankly, more demanding moment to work in the nonprofit and social impact sector. Helping mission-driven organizations figure out how to fund and share their work in this economy is one of the parts of my job I’m most passionate about right now. And 2025 is proving that staying clear and adaptable is what separates organizations that thrive from those that fall behind.

To understand how much the landscape has shifted, it helps to look back at where we started.

In 2020, funding looked dramatically different because multiple forces converged at once: emergency relief legislation injected billions of dollars into communities, foundations rapidly loosened restrictions to get money out the door faster, and a surge of public giving followed the racial justice uprisings. Donors were motivated by both urgency and solidarity, and many organizations received unprecedented levels of unrestricted support they’d never seen before—or since.

86% of nonprofit leaders say high costs have already impacted their organizations and clients, and 84% expect government funding cuts tied to the election (Nonprofit Finance Fund, 2024).

And despite a modest 1.9% increase in overall giving, inflation means that many nonprofits effectively have less to work with than they did in 2023 (Giving USA, 2024).

Now here we are in 2025, inflation is still squeezing operating budgets. Federal funding priorities are moving again in response to the current administration’s passage of the Big Ugly Bill. And with volatile tariffs, uncertainty about the United States' global standing, and the constant background noise of potential conflict, many funders and corporate partners are growing more cautious about long-term commitments.

The takeaway? Communities will still need your services, products, advocacy, and programs—possibly more than ever. But funding won’t automatically keep pace with that need. The organizations that think strategically and adapt quickly will be the ones positioned to have the greatest impact.

Below are seven priorities you need to tackle now if you want to end this fiscal year ahead of the curve.

1. Start Pre-Work Before You Think You Need It

If you’re reading this thinking, “We’ll circle back in September,” please don’t. If that was your approach in the past, it’s time to move that timeline up.

The nonprofits that consistently outperform their peers start laying groundwork in the spring: reviewing which funders actually paid out, updating case statements, and tightening processes. With new federal dollars in flux, early preparation positions you to move quickly when opportunities open up.

2. Conduct a Revenue and Scenario Audit

Consider this your financial reality check. Where did your money really come from last year? What patterns are emerging?

Individual giving grew just 1.6% in dollars—but actually shrank by 0.3% after adjusting for inflation (Giving USA, 2024).

You can’t assume the same checks will arrive on autopilot. Sketch out scenarios: What happens if your biggest grant disappears? What if individual giving drops 10%? What if it grows?

Planning for multiple outcomes is no longer optional. Create your outreach strategy and list with this in mind.

3. Build Your Sponsorship Pipeline and Engage Early

Corporate budgets often get finalized long before the fourth quarter. Summer is an overlooked window to start conversations while decision-makers still have time to plan.

Reaching out early can be the difference between securing a “yes” and hearing “maybe next year.” Imagine it’s October, and you finally contact a corporate partner—only to learn their budget was locked in back in August.

Avoid this mistake by using the summer months to engage decision-makers ahead of Q3 budget meetings. Between mid-June and late July, inboxes tend to be quieter, the pace slows down, and people may have more bandwidth to have meaningful conversations.

4. Refresh Your Case for Support With Proof

In 2020, you could get away with a heartfelt plea and a promise to keep the lights on. Those days are over. Today’s donors want evidence. Over 60% of funders say they expect clearer impact data before renewing support (Nonprofit Finance Fund, 2024).

Your story needs to be current, credible, and grounded in what’s happening right now. Pay attention to funding trends, but don’t stray so far from your core mission that you lose focus if you decide to pivot your services, programs, or products.

Either way, the more specific you are, the more trust you build.

5. Strengthen Grant Readiness

Grant cycles are becoming increasingly competitive. If you’re pursuing federal funding, prepare for heightened compliance requirements and extensive documentation. Make sure you're ready with up-to-date financials, current board information, and clear impact data.

Because being prepared isn’t just about efficiency—it signals to funders that you’re serious and capable. So, get your house in order before the next RFP drops.

6. Prioritize Local and Regional Partnerships

With federal funding undergoing major transitions, state and regional grants, community foundations, and local corporate sponsors are becoming more important sources of support.

Focusing on relationships closer to home brings stability that national shifts can’t shake. That’s why proven community-driven approaches like mutual aid networks, food cooperatives, grassroots organizing, social enterprises, and shared resource initiatives have stood the test of time. These type of people-first efforts are what keep us resilient, especially in times of uncertainty and inequity.

7. Keep Expenses Under Control and Diversify with New & Existing Supporters

As we mentioned earlier, costs are likely to keep rising. Inflation, higher wages, and growing demand for services mean you’ll need to watch spending closely and look for efficiencies wherever you can.

At the same time, expanding and diversifying your funding base (especially younger supporters) can help offset shifts in traditional funding. Many organizations led by people of color have been disproportionately affected by the pullback in DEI funding, with 61% reporting disruptions (Nonprofit Finance Fund, 2024).

It’s important to consider not only who your supporters are but also how they can contribute.

One of the most effective ways to protect your work from disruption is to strengthen relationships with past and existing donors, communicate your impact consistently, and develop additional revenue streams like recurring giving programs, fee-for-service offerings, in-kind/non monetary contributions, or mission-aligned earned income.

A diverse funding base allows you to deliver on your mission without depending too heavily on any single source.

Closing Thoughts

This blog post isn’t about panic or short-term survival. It’s about staying ready, so don't have to get ready. My hope is that this information encourages you to keep delivering the work your community depends on.

And after using this blog to assess where you are, reach out! We’re here to help you get to where you want to go.

We’ve shared the what and the why—let us handle the how.