However, over the past year, federal funding for organizations providing direct services to vulnerable groups has shrunk dramatically. This has put extraordinary pressure on foundations and other private funding streams to “make up” the difference – an ask that, as we have discussed elsewhere on this blog – is simply not feasible in light of the scale of government funding.
In a recent article, I provided some overall lessons learned from a year of grantseeking under the second Trump administration. Here, I dive a bit deeper into what we are learning from our partners operating in the social services sector, including key action steps that the most successful organizations are taking to adapt.
What changed in 2025?
Without a doubt, nonprofits supporting the most vulnerable groups saw a dramatic increase in need at the same time that federal funding cuts to essential programs rolled out throughout the year.
Specific observations that our teams supporting Elevate’s partners in the social services made over the course of the last year included:
Housing first is under attack
Under the current administration, federal policy is rapidly shifting away from a housing first model – an evidence-based approach that prioritizes stable or permanent housing for individuals experiencing homelessness without precondition and before addressing any of the underlying issues that led to homelessness in the first place.
Housing first approaches were developed in the early 1990s. Since then, housing first interventions have become the gold standard for nonprofit housing programs nationwide, and they serve as the basis for most state and federal housing funding streams.
Organizations providing housing services face the very real possibility that public funding will continue to dry up for housing first programs.
The need is extraordinary (and growing)
Over the past year, social service providers that offer case management services saw record high numbers of community members reaching out for help navigating public benefit systems, employment barriers, health services, child care, and more.
Furthermore, with increasing unemployment and skyrocketing insurance costs, there is more and more pressure on agencies providing affordable (or free) health services.
Private foundations won’t replace government dollars
Even while public funding dwindles for direct social services, private funders by and large remain uninterested in providing funding for ongoing, direct services like food pantries, case management, and housing supports.
This is noteworthy, as it is not the same behavior that we saw from grantmakers during the COVID-19 pandemic. At that time, many private grantmakers offered rapid response funding to address direct service needs. Foundations did not provide the same type of support services in 2025.
The competition is fierce, and grantmakers are taking action
Finally, as I discussed in my last article, we saw a number of grantmakers close application portals before the published submission deadline, while others required additional application steps with little notice to grantseekers.
One potential cause of this unfortunate trend is the significant increase in applications from organizations looking to replace public funding; foundation staff are simply overwhelmed by the volume of applications, and these steps serve to limit the number of proposals to review and respond to.
How are Social Service providers responding?
While these changes resulted in an extraordinary burden on human service providers, Elevate’s clients in this space took action to rise to the challenges presented. Our most successful partners adapted in a few key ways.
Leverage Individual Donor Fundraising Campaigns
Several Elevate clients turned to their base of individual donors, establishing substantial fundraising campaigns designed to meet acute, time-sensitive community needs. For example, when SNAP funding was paused and other public benefit programs shrunk due to increased eligibility requirements, our partners appealed to donors to help meet the needs of their community members.
Align Programs to Policy Priorities
Some organizations identified the opportunity to launch new programs in 2025 that were mission-aligned and addressed specific community needs, but which also remain aligned with public policy trends.
For example, organizations that sought support for addiction programs and mental health services were more successful than those that continued to focus on housing first initiatives. And, even with the recent threats to addiction and mental health services, bipartisan support for nonprofits meeting these community needs has effectively insulated these programs from more dramatic cuts to public funding.
Steward Existing Funder Relationships
Building strong relationships with your funding partners is key to any successful grant program. (If you’ve read an Elevate blog, participated in a webinar, or engaged us for grant writing services, you have likely heard us beat the drum for cultivation and stewardship!)
So it is no surprise that this tactic is key to adapting to the changes in grantmaking that we’ve seen over the past year.
Our most resilient partners in the human services sector have focused on funder stewardship, with a particular eye toward anticipating application cycles and identifying opportunities to submit grant reports and proposals early.
Nonprofits that invested in their relationships with their current funders were able to cut through the noise by maintaining relationships with program officers, differentiating their requests for support from other organizations competing for limited funding, and staying on top of their grant and report deadlines.
Are you looking for more analysis from Elevate on the trends we are seeing in grantseeking across our dozens of nonprofit partners?
Check out our observations on How 2025 Changed Grantseeking overall, and read this article from August 2025 which captures our data analysis on How the Public Funding Landscape is Shifting for Nonprofits.
And, if you’re interested in exploring how Elevate can support your organization to rise to the current challenges across the sector, we invite you to get in touch with our team! We’ll be glad to schedule a meeting to discuss your unique needs.
While the past 18 months have been marked by chaos and uncertainty, one thing is certain: 2025 undeniably changed the nonprofit sector.
Many of us are hoping that we can leave some of these changes in the past. However the reality is that many of the changes we’ve observed will drive planning, decision making, and fundraising results for nonprofits in 2026 and beyond.
At the same time, not all funder landscapes are impacted the same way; what is working (or not) for education groups is not the same for those operating in the human services space, for example.
Over the course of 2025, I hosted weekly sessions with Elevate staff to assess in real-time how grantseeking was changing for our nonprofit partners, and how we could support them in meeting the moment.
In this article, I have summarized the takeaways we captured for 2025 and what these mean for grantseekers in 2026. In subsequent articles on Elevate’s blog, I examine the specifics for those working in the areas of human services, education, the arts, and advocacy.
4 Key Strategies for Navigating the Changing Funding Landscape
Across all issue areas, there are some key strategies that Elevate teams and our nonprofit partners are using to navigate the changes to grantors’ interests, the timing of funding requests, and application requirements:
1. Prioritize Funder Stewardship
Many grantmakers are doubling down on support for their current grantees and are not accepting new applicants. In such cases, leaning into existing relationships with funders is the only path forward.
See the Meyer Foundation, for one example, which states on its website that: “In 2026, nonprofit organizations and communities across our region are navigating significant uncertainty and disruption. In response, the Meyer Foundation will focus its resources on sustaining existing partnerships and will not accept new grant applications this year.”
In other cases, foundations with open application processes were inundated with new requests. This led some to close application portals early, while others pivoted to make larger investments in existing grantees, rather than entertaining an overwhelming pool of new requests.
In this context, the most strategic nonprofit organizations are doing everything they can to stay in close communication with their key funders. If your funding needs have changed – whether due to a decrease in public funding or a new program to support your community – make sure your current grant partners clearly understand this.
Proactive communication also mitigates risk when grantors abruptly change their priorities, application timelines, and requirements; if you’re regularly communicating, you’ll be in the know when these changes come to light, so that you can be prepared to pivot your funding request as appropriate.
Because the landscape is shifting so quickly, private foundations are more cautious about investing in new organizations or issues that they don’t already know a lot about. Securing a grant from a new funder or increased funding from an existing partner is still possible, but it will result from trusting relationships (not cold requests).
2. Make the Most Flexible Ask
Whenever possible, ask funders for general support or funds that can be applied across a wide range of expenses or programs, rather than focusing your request on a specific project or program area.
While we have issued this advice to our partners even in times when the context was less turbulent, it is even more important during times like these when revenue streams and community needs are rapidly changing. This approach helps ensure that, even if your programs or priorities must shift unexpectedly, you can still fulfill your commitments to funders.
3. Forecast Funding Conservatively
While we are proponents of using your renewal grant calendar as a basis for future revenue projections, this is no longer the most prudent practice. Organizations cannot rely on past grant revenue totals to build their budgets.
Forecast future funding by closely reviewing all of your current funders. Examine their giving history and their likelihood to renew funding for your work, based on their public statements and individual conversations you have with program officers about how your work aligns with their own changing giving strategies. This practice will help you to plan appropriately for the uncertainty that lies ahead.
4. Position Your Work in a More Competitive Context
Across the board, there is increased competition for private grant dollars. This is due in large part to extraordinary cuts to public funding, which has pushed nonprofits that were largely publicly funded to pursue other revenue streams. Even those that were not immediately impacted by the loss of public funding are seeing greater competition for private dollars.
Telling a clear, authentic, strategic story that speaks to each prospective funder has become more crucial than ever.
In addition to these global strategies that can be applied across the board, we have learned that different funding landscapes are reacting very differently to public policy and funding changes in 2025 and 2026. Watch this space for specific guidance and key lessons learned by sector that will be outlined in subsequent blog articles.
