Funding Donor Insights in a Budget-Conscious Time

Across the globe, nonprofits are grappling with a new kind of crisis, one defined not by an urgent cause, but by the erosion of funding that has long sustained them. Nonprofit organizations are facing destabilizing funding streams that once powered entire sectors of their humanitarian and development work.  

These actions have shaken the very foundations of many critical organizations. And too often, the teams tasked with sustaining the funds necessary to survive – development, strategy, marketing – are shrinking orgone. In this moment, a data-driven donor strategy should be the first approach nonprofits take. Instead, it’s often the first place that gets cut. And that’s a mistake. 

Donor Insights Are Not a Luxury. They Are a Lifeline. 

In a capital-restrained environment, every dollar raised matters more. So does every message, every channel, every moment of connection. Understanding who your donors are, what motivates them and how to evolve your story in response to their changing values isn’t a nice-to-have; it’s the foundation of sustainability. Yet the paradox is clear: Just as the need for insight peaks, the resources to pursue it bottom out. 

So where do we go from here? 

Rethinking How We Fund Insight 

If traditional budgets can’t carry the weight of donor research and strategy during these challenging times, nonprofits must start exploring approaches that are more flexible and, importantly, more fundable. 

Here are a few ways organizations can re-resource this work: 

·      Make Insight a Fundable Initiative.
Donor engagement strategy isn’t overhead, it’s infrastructure. Many foundations and high-net-worth individuals are open to underwriting capacity-building efforts, especially when you can demonstrate how better donor understanding will unlock new revenue and grow long-term impact. 

·      Pursue Matching or Pooled Support.
Consider creating a donor experience fund that combines organizational contributions with philanthropic match dollars. Funders are increasingly willing to co-invest in strategic capabilities, especially when insights are designed to scale across multiple teams or campaigns. 

·      Lean into Research-as-Engagement.
Done right, the research process itself can build relationships. Asking the right questions, involving donors in the journey and showing how you’re listening aren’t just inputs to strategy. They’re ways to deepen trust and commitment in real time. 

Building the Case 

Because federal funding for nonprofit organizations both directly and indirectly funnels through grants and other aid, focusing on the dollars you have the most control over will serve you now and into the future. 

If your board or leadership team needs convincing, start here: Donor insights help reduce cost per dollar raised, increase retention and improve message clarity. They also provide a moral compass, ensuring that decisions are guided not just by what’s easy or familiar, but by what truly resonates with those who sustain your mission. 

At Brand Federation, we believe this moment calls for bold rethinking – not just of your messages or campaigns, but of the funding models that make them possible. We’re working with organizations and funders alike to develop new approaches to insight generation. Because when government support disappears, the most valuable thing you can know is why your supporters still show up…and how to keep them with you.