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Why Nonprofit Leaders Must Prepare for a Recession

A recession tests more than just the economy: it tests our values. The challenge ahead is clear.
Karen Houghton
May 8, 2025

A recession tests more than just the economy: it tests our values. We saw this during the Great Recession, the COVID pandemic, and now predictions are strong for another recession.

When the markets wobble and uncertainty looms, it's easy to scale back and focus inward. But nonprofits have always defied that instinct. They press on, not because it's easy, but because this work is essential, especially in hard times.

History proves it.

During wars, pandemics, and past recessions, nonprofits were on the front lines. They delivered food to empty tables. They provided shelter when families had none. They educated children when schools closed and brought dignity to the overlooked and underserved. Through every kind of storm, they’ve remained steadfast, meeting human needs with relentless compassion.

That’s the inspiring reality we see every day. Nonprofit leaders are not only service providers, they are moral leaders. Philanthropic organizations carry the weight of their communities on their shoulders. And now, with economic tremors rattling the markets, the strength of our charities will be tested again.

The challenge ahead is clear: inflation, donor fatigue, and budget constraints are tightening resources. Yet demand for services continues to rise. Nonprofit leaders can’t afford to wait. 
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The time to prepare is now.

So what does preparation look like? It means taking a hard look at your organization’s financial health. Do you have reserve funds? Are you investing your funds wisely? Are your revenue streams diversified?

While the news about the tumultuous stock market may spook investors, now is the time to explore cash management and investment strategies that can help grow your rainy day funds. It means leaning into partnerships and technology that can help your team operate more efficiently and sustainably. It’s not about doing more with less; it’s about being smarter to manage the resources you have.

And most importantly, it means staying connected to your mission and your supporters. Now is the time to communicate clearly, rally your board, engage your community, and remind donors why your work matters now more than ever.
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Work to become resilient and sustainable.

At Infinite Giving, we stand shoulder to shoulder with nonprofits, offering tools and support to strengthen your organization. Because we believe that if there are more sustainable nonprofits, we’ll build more resilient communities and, ultimately, a better world.

To those working in nonprofits: we see your courage. To those who support them: we thank you. And to those looking for a way to help: now is the perfect time to start. Let’s brace for the storm, not with fear, but with resolve. Nonprofits have survived every storm. This one will be no different. We can help. ‍

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Schedule a call to get started recession-proofing your nonprofit.

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