Facing Government Funding Cuts? Reach Out Now: What Donors Need to Know

Nonprofits across the country are facing real and growing challenges as government funding cuts increase. If your organization depends on public dollars, you’re probably asking hard questions—about how these changes will affect your programs, your staff, and the people who count on you every day.

We’ve seen this before: when public support shrinks, donor engagement becomes even more critical. And the good news? You have a powerful asset on your side—your loyal community of supporters.

We recommend building a clear, thoughtful donor communication strategy right now—one that draws people close and keeps them connected. In tough times, openhearted communication is not just nice to have—it’s your best tool for resilience and stability.

Your Donors Want to Hear from You

Let’s start with this truth: your donors aren’t just casual supporters. They’re emotionally and financially invested in your mission. They’ve taken action. They’ve given, volunteered, shown up, and spread the word.

In other words, they care—and they want to know how you’re doing.

You don’t have to craft a perfect message. You don’t need all the answers. What matters most is that you stay in touch. Remember, when donors feel included in the journey, they’re much more likely to stick with you for the long run.

So as you consider a communications strategy, you really do have a lot to work with.

Here’s the good news: it won’t take much to activate your passionate supporters.

Use the 3 T’s to Create a Donor Communications Plan

We recommend you build your strategy around three simple, proven elements. We call them the 3 T’s:

Target: Who Needs to Hear from You?

Take a few minutes to segment your audiences. Your donors aren’t all the same—and your messages shouldn’t be either. Think about:

• Longtime major donors
• Institutional funders
• Mid-level supporters and legacy prospects
• Board members and past board leaders
• Volunteers and grassroots supporters
• Government funders and decision-makers

Each of these audiences plays a different role in your fundraising ecosystem. And each deserves to hear from you in a way that feels personal and respectful.

Topic: What Should You Say?

Start by answering these questions:

• What’s happening with our funding?
• What challenges are we facing?
• What are we doing to respond?
• How can our supporters help?

Be honest, but hopeful. Share what’s working. Acknowledge what’s hard. Tell a story or two about how your programs are still making a difference.

And yes—include a clear call to action. People like to help. Give them something simple and meaningful to do.

Tone: How Should You Say It?

You’ve heard us say it before: be warm, friendly, and human. Your tone should sound like a conversation—not a press release.

People respond to messages that feel real. Donors want to feel like trusted insiders, not just names on a list. So let your personality shine through. Show a little vulnerability. And above all, be genuine.

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Donor Segments to Prioritize—And How to Reach Them

Let’s dig into how to approach each of your key audiences.

1. Institutional Funders: Engage Beyond the Report

Many foundations and grantmakers are proud to partner with nonprofits doing great work. But they don’t always hear directly from you in real time.

We recommend picking up the phone. A personal call to say, “Here’s how we’re being affected—and how we’re responding,” can build a deeper relationship.

Share impact stories. Offer a briefing or informal check-in. Let them see how their funding is making a difference—especially in the face of adversity.

Bonus tip: ask if they’d like to receive occasional short updates from you. This creates a rhythm of communication and keeps your work top of mind.

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2. Major Donors: Keep the Connection Personal

Your major donors are key to your organization’s stability. They fund core programs, launch new initiatives, and often give when others can’t.

During a funding crisis, we recommend reaching out personally.

• Set up a quick Zoom or coffee.
• Send a heartfelt update from the executive director.
• Invite them to a behind-the-scenes conversation about your next steps.

Even if you’re not making a formal ask, you’re building trust—and reminding them that their support matters now more than ever.

Don’t forget about prospects, either. This is a great moment to connect with potential major donors who’ve shown interest but haven’t yet committed. When you’re real with people, they respond.

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3. Mid-Level Donors and Active Supporters: Don’t Overlook These Gems

These folks might not be making five-figure gifts—but they are consistent, loyal, and often your most vocal champions.

They show up for events. They share your social posts. They believe in your mission—and in you.

We recommend treating them like family. Use a friendly, conversational tone. Send handwritten notes. Invite them to join in simple but meaningful ways—like writing a thank-you note to a staff member or sharing their favorite memory of your programs.

They want to feel included. So let them in.

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4. Your Broader Community: Activate Their Energy

Your wider circle of supporters—email subscribers, social media followers, former volunteers—can be an enormous force for good.

They might not give big, but they show up, speak out, and spread the word.

So tell them what’s going on. Share real stories. Let them know exactly what’s at stake—and how they can help.

Try something like:

“We’re facing new challenges due to funding cuts. Here’s how we’re responding—and how you can make an impact.”

Then invite them to:

• Share your update
• Make a small monthly gift
• Attend a virtual town hall

Make it easy. Make it personal. And celebrate their involvement every chance you get.

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5. Government Funders: Stay Visible and Vocal

When public funding is under pressure, visibility matters. The people who influence your grants and contracts need to hear from you—clearly and often.

That includes:

• Local and state government agencies
• Legislative bodies and their staff
• Commissions and appointed boards
• Elected officials across all levels

We recommend sending a brief, respectful update explaining how funding cuts impact your services and community. Keep it short and direct:

“Would you be open to hearing more about how these changes are affecting our organization and the people we serve?”

Most will say yes. Many are eager to understand real-world impact—and you may even open the door to advocacy support or alternative funding streams.

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Action Steps You Can Take Today

Need a quick to-do list to get started? Here are five ideas:

• Draft a short email update for major donors.
• Ask board members to call 2–3 key funders.
• Host a 20-minute donor briefing on Zoom.
• Share a personal impact story on social media.
• Email your local representative with a 3-sentence briefing.

Small touches go a long way. And consistent communication builds lasting trust.

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Final Thought: Your Community Wants to Stand with You

When funding gets tight, it’s easy to feel isolated or overwhelmed. But this is also when your donor community can truly shine.

Your relationships are your strongest resource. And your voice—clear, kind, and confident—can bring people closer and inspire action.

We’re cheering you on.

Need help crafting your communication plan? Reach out to us at Gail Perry Group. We’d love to partner with you.