How Tariffs Impact Nonprofit Fundraising. And What Leaders Can Do About It
Amid ever-evolving trade tensions, nonprofits across America are bracing themselves, not for a direct hit, but for the economic ripple effect that follows a tariff storm. If you're leading a nonprofit organization, you may want to keep an eye on what's happening in Washington, Beijing, Ottawa, Mexico City, and Brussels.
Tariffs, until recently, were an obscure trade tax levied on imported goods but have made an unexpected resurgence as a weapon of international economic diplomacy. But unlike missiles or troops, tariffs fight the battle indirectly. Their collateral damage? Often, the pocketbooks of average American consumers.
Here's why that matters for nonprofits:
As tariffs inflate the prices of everyday goods, from washing machines and cars to medicine and building materials, the costs trickle down to already tight family budgets. The $50 a month of spare cash earmarked for a charitable cause might soon need to fill a gas tank or grocery basket.
The economic logic isn't complicated. When tariffs increase, prices at the local store will also rise. And when the cost of bread and milk inches higher, the willingness—and capacity—of your typical donor to open their wallet drops. Nonprofits will face a very real challenge: maintaining a steady stream of donor contributions in an uncertain economic environment.
So, what can nonprofit leaders do in this scenario? How do you steer your fundraising strategy when your donors start to feel the squeeze?
The short answer: you pivot. You adapt. You make changes today to reap the rewards of resilience tomorrow.
Fundraising online, particularly data-driven digital fundraising, has become a key way to weather economic volatility. Unlike traditional methods, such as direct mailers or gala events, online fundraising allows for nimbleness and precision that is not limited by geography. Leveraging sophisticated data analytics, nonprofits can shift their message, audience, and tactics as the economic landscape changes (which, if the last three months are any indication, will happen often).
What Should You Be Doing Now?
Closely monitor the situation and proactively adjust fundraising campaigns to meet the changing needs of donors. Currently, our approach for nonprofits includes:
Running hyper-targeted campaigns aimed precisely at demographics we've identified as having both the means and willingness to give generously, even amidst economic fluctuations.
Deploying broader remarketing campaigns targeting wider audience segments capable of giving at lower donation levels. The goal here is to convert these donors early, ahead of anticipated price increases that may tighten household budgets.
Remarketing to reinforce the ongoing value of services to existing sustainer donors. By reminding this crucial group why they chose to support in the first place, we aim to help nonprofits maintain their mission as a financial priority for their most committed supporters.
Our nonprofit partners may not control tariff policies, but with strategic adaptation powered by real-time data, we are better positioned to navigate their consequences.
Yes, strategic shifts are uncomfortable. Change always is. Yet it's precisely during uncertainty that decisive action and innovation reap the most significant rewards. While others hunker down and wait for clearer skies, the organizations brave enough to adapt today will emerge stronger, more resilient, and positioned far ahead of competitors tomorrow.
The bottom line is that tariffs create turbulence. There's no escaping that. But turbulence can also create opportunity—if you know how to navigate it. And right now, the organizations best equipped to turn uncertainty into advantage are those harnessing the power of digital agility and data-driven precision.
Need a Helping Hand?
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