2021 Funding Trends
As we move into 2021, we all have to wonder what the next year is going to look like. 2020 impacted everyone in different ways, whether it was through the pandemic or the election. Today, we will look at a few trends that are anticipated for non-profit funding in 2021.
Diverse Leadership
Over the last few years ,organizations have made a concerted effort to establish thoughtful leadership practices. When looking for foundation funding in 2021, be sure to evaluate your organization’s leadership structure and ensure you are representing a wide range of voices from the community.
Mission-Focused
It is also important to note that staying committed and laser-focused on your organization’s mission throughout this year will be critical in creating the funds needed to advance your goals. 2020 contained one of the most divisive elections in history, meaning that the non-profit sector will now need to be even more competitive to gain the attention and resources necessary to be successful. The best way to do that is to be fully committed to your mission, and clear with those foundations you think might offer funding.
Flexibility
Flexibility is especially important in a time when a global pandemic has forced many nonprofits to reevaluate and adjust the way they operate. Being certain of what you can provide the community you serve is imperative for success, but that may mean shifting your focus toward more immediate needs during this time to stay in alignment with your mission. The new year is a great time to reflect and reevaluate, reviewing missions, goals and procedures to guarantee they are utilizing the best fundraising and volunteer engagement strategies.
Transparency
We are all aware that nonprofits must maintain some modicum of transparency to keep their 501(c)(3) status.However, it seems that transparency is becoming increasingly important as we move into the new year, with many foundations looking for more detailed tracking and reporting of data. Foundations want to know that they are funding socially responsible organizations that will make a measurable difference in their community.
Corporate Giving
Corporate giving rose by 0.4% in 2020 and is expected to rise again in 2021, according to Philanthropy Outlook. Although there are many factors to consider, experts suggest that the growth in GDP and corporate savings will lead to a significant increase in corporate philanthropy.
High-Impact Philanthropy
High-level individual donors and family foundations are expected to increase giving in 2021 as well, thanks to expanding infrastructure and generational transitions. More millennials are moving to the forefront and as a whole, they are more focused on social change than any other generation.
Government Impact
Grant makers share many of the same tax-exempt legal structures as non-profits, meaning that the trends in one can and most likely will carry over to the other. Many will be looking to foundations to fill the gap as cash-starved states begin spending less due to budget cuts.
Top Trends
According to the Council of Nonprofits, these are the top trends in the nonprofit sector for 2021.
Protecting nonprofit nonpartisanship
Providing moral leadership for the values of diversity, inclusion, and equity
Budget cuts
Cybersecurity
Changes in charitable giving
Natural disasters: preparedness and recovery
More respectful relationships between grantmakers and nonprofits
Donor advised funds
Gender pay gap
Peer-to-peer fundraising and "crowdfunding"
Board members as advocates: Stand for your mission
Wellness for nonprofits: Being sustainable is more than money.
If you are looking for an opportunity to dive deeper into funding trends in 2021, we have partnered with Go Lead through Missouri State University to offer a virtual workshop on February 19! Please join us at https://golead.missouristate.edu/goleadonline.htm
