Nonprofits Navigating Challenging Waters

In this month’s Coffee with B, one nonprofit leader asked a question that’s sitting heavy with many right now: "How do nonprofits engage, given federal uncertainty and the possibility that businesses may retreat in response?"
 
It’s a timely and important question.
 
Here in Minnesota, the impact of frozen or canceled federal funds already is being felt. As of April 11, the Minnesota Office of Management and Budget reports:

• $299M in federal funding cancelled, with another $56M at risk
• The Minnesota Department of Health alone has lost $230M and laid off 170 grant-funded employees 
• Other departments – Higher Ed, Human Services, Agriculture, and Public Safety – also are facing significant losses
• These figures don’t include cuts to nonprofits, colleges, or research institutions, which could add tens of millions or more to the total

 
The ripple effects are real. But the message I heard in response to this moment – across both nonprofit and business leaders – was one of resilience, creativity, and continued engagement.
 
Advice from leaders in the field - here’s what they had to say:

1. Start with mindset.
   "When I feel overwhelmed, I ask: what can I do? Then I commit to doing just that—what I can. It’s a posture of groundedness that keeps me moving."
2. Stay present and visible.
   Nonprofits are businesses too—and your mission may matter now more than ever. Don’t shrink back. Be visible. Be vocal. Let people see your work.
3. See businesses as partners, not just funders.
   This is a powerful time to seek wisdom, exchange ideas, and build shared understanding with business leaders.
4. Ask smart, aligned questions.
   Frame conversations around shared values. Ask how your mission intersects with their priorities. Offer ideas, not just asks.
5. Engage with empathy.
   One nonprofit leader put it this way: "Be transparent about your challenges—but also considerate of theirs. Lead with curiosity. Ask, 'Is there a way we can support you right now?' That might mean providing volunteers, collaborating on visibility, or simply being a trusted partner." Flexibility and relationship-building now can pave the way for deeper investment later.​ ​

This Will Be a Year of Heart and Hustle
As one nonprofit member said, "This will be a year of heart and hustle." Let’s keep showing up — with clarity of mission, with generosity of spirit, and with confidence that the work you do continues to matter.

If your nonprofit is navigating funding uncertainty and looking for ways to stay connected to the business community, we’re here to help. And we’re in this with you.
 
See you in the trenches,
B ​

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Chamber Check-in 4/15/25