When One Funder is Not Enough

In this episode of the First Day Podcast, host Bill Stanczykiewicz, Ed.D., is joined by Ann Fitzgerald, MA, founder of AC Fitzgerald and alumna of the Indiana University Lilly Family School of Philanthropy. Ann shares her expertise on helping nonprofits navigate financial crises, offering practical strategies for organizations that find themselves overly reliant on a single funding source. The conversation was sparked by a recent federal funding pause in early 2025, which served as a wake-up call for nonprofits dependent on government funding, large foundations, or major donors. Ann introduces her “Three Rs” framework: be resilient, be realistic, and reach. She emphasizes the importance of staying calm, gathering facts, and creating scenario-based plans that allow for flexible responses. Drawing on her consulting experience, Ann highlights how organizations can reassess budgets, preserve cash, and engage board members, staff, and community networks for short-term support. Bill shares his own experience leading a nonprofit through the 2008 financial crisis, underscoring the critical role that boards play during times of financial uncertainty. The conversation transitions to long-term planning, where Ann stresses the importance of building an operating reserve by setting aside 10% of every undesignated dollar. She highlights the need for diversified funding sources, reminding nonprofits that 85% of charitable giving comes from individuals. She also encourages nonprofits to ramp up stewardship efforts, explore planned giving opportunities, and form finance committees to strengthen financial planning. With donor confidence at its highest level in five years and the stock market’s strong performance in 2024, Ann and Bill are optimistic about fundraising prospects in 2025. The episode closes with key takeaways on managing financial risk, the power of clear communication with stakeholders, and the importance of involving donors and board members as partners in finding solutions. Ann’s advice serves as a powerful reminder that resilience and adaptability are essential for nonprofits to weather financial challenges. The Fund Raising School offers courses, webinars, and custom training opportunities to help nonprofit leaders strengthen their fundraising strategies and build long-term financial health.