Increased uncertainty around federal funding, along with shifting donor priorities and delays in grant disbursements has created financial challenges for nonprofits in 2025. With traditional funding sources under strain, nonprofits need cost-effective ways to signal trustworthiness, transparency, and effectiveness. Donors, sponsors, and grant makers are more selective than ever, meaning your organization’s public-facing profiles and financial disclosures can make or break a funding opportunity.

Quick Takeaways: Budget-Friendly Ways Nonprofits Can Stand Out

• GuideStar and Charity Navigator profiles are essential tools for building trust and attracting new supporters.
• Form 990 is more than a filing requirement—it’s a donor communication opportunity.
• Transparency builds long-term funding relationships and can help secure new grants.
• Simple profile updates and narrative storytelling go a long way toward maximizing impact without spending extra funds.

As we navigate 2025, financial uncertainty is hitting nonprofits hard. Delays in grant funding, evolving donor priorities, and federal budget constraints are forcing nonprofits to rethink their fundraising strategies. The pressure is on to show impact, build trust, and attract support – without spending a lot.

1. Optimize Your Charity Navigator and GuideStar Profiles

Charity Navigator and GuideStar are powerful tools that help nonprofits demonstrate financial responsibility and program effectiveness. To make the most of these platforms:

• Complete your profiles with up-to-date financial data, governance details, and impact metrics.
• Highlight transparency and accountability by sharing audited financial statements and board leadership practices.
• Earn high ratings by ensuring strong financial health, ethical governance, and measurable program outcomes. Many donors prioritize organizations with strong Charity Navigator scores.

“It doesn’t cost a dime to update your GuideStar profile, but doing so could bring in thousands in new donations.” — Jamie Hansen, Nonprofit Partner

2. Leverage Form 990 to Strengthen Donor Confidence

The IRS Form 990 isn’t just a compliance document, it’s a valuable tool for showcasing your nonprofit’s mission, financial stewardship, and community impact. To maximize its effectiveness:

• Tell your nonprofit’s story in the narrative sections (Part III) to explain how funds are used and what impact they create.
• Demonstrate financial sustainability by accurately reporting revenue sources and program expenses.
• Use it as a fundraising tool—many donors and grant makers review Form 990 before deciding to contribute.

3. Use Transparency to Attract Funding and Grants

Grant makers, corporate sponsors, and major donors rely on public financial data when deciding where to allocate funds. By maintaining a strong presence on Charity Navigator and GuideStar and ensuring an accurate, compelling Form 990, nonprofits can:

• Boost donor trust and encourage long-term commitments.
• Increase grant eligibility, as many funders require transparency on these platforms.
• Stand out in a competitive fundraising landscape, positioning themselves as reliable, high-impact organizations.

FAQs: Using Transparency Tools to Grow Your Nonprofit

1. Do I need a tech team to update my GuideStar or Charity Navigator profiles?
   No! Anyone on your team can do it. These platforms are designed to be user-friendly, especially for small nonprofits.
2. What’s the biggest mistake nonprofits make on Form 990?
   Leaving narrative sections blank. That’s your opportunity to tell donors what you do and why it matters.
3. Are GuideStar and Charity Navigator only for large nonprofits?
   Absolutely not. Small and mid-sized organizations benefit greatly from visibility and can stand out with strong profiles.
4. What if my organization has financial challenges—should I still share everything?
   Yes, transparency builds trust. You can explain shortfalls in narrative sections and outline plans for improvement.

In uncertain times, nonprofits must control the story they’re telling. By making the most of free and public-facing tools like Charity Navigator, GuideStar, and Form 990, organizations can attract new donors, build stronger relationships, and stay sustainable – without blowing the budget.

Ready to Strengthen Your Nonprofit’s Financial Story?

Your Form 990, online profiles, and impact metrics are telling a story—make sure it’s the right one.
Start a conversation by filling out the form below to learn how to strengthen your financial visibility and strategy.