Many nonprofits have been struggling since the pandemic hit in 2020. Even as the immediacy of COVID and its far-reaching impacts on nonprofits eased, the economic effects have lingered. Here are four major challenges organizations should prepare to tackle as we head into 2025.

1. Donor Fatigue

Donor fatigue is not a new issue, but election years compound the problem. Many of your organization’s consistent donors and prospective new ones have been inundated with pleas for political contributions over the last few months. Their exhaustion with solicitations can spill over to asks related to charitable causes, even after the election is over.

Brainstorm ways to break through that resistance. You may need to modify your messaging to ensure a targeted, personalized approach. Visual storytelling that focuses on impact and highlights actual outcomes of the past year can reignite donor relationships that may have faded and attract new partners in the community. While these effort may require additional time and resources in the short term, it can yield positive results in the long run. Many financial experts remain optimistic that the economy will improve, which could encourage donor generosity.

2. Changing Administration as a Result

The results of the recent election and the resulting change in administration will significantly impact nonprofits, extending beyond the issue of donor fatigue. In the coming years, the election outcomes will directly affect organizations in multiple ways.

One crucial factor to consider is that several key provisions of the Tax Cuts and Jobs Act (TCJA) are set to expire after 2025 unless Congress intervenes. For instance, if the higher standard deduction reverts to levels prior to the TCJA, more individuals may opt to itemize their deductions, potentially leading to an increase in charitable giving.

Additionally, control of Congress will affect budget priorities, especially regarding the amount of government funding available for nonprofits.

3. Staff Shortages

The hiring crisis that began during the pandemic continues to plague nonprofits. Many are seeing a higher demand for services, while struggling with rising labor costs and the difficulty of recruiting and retaining younger workers. Stress and the burnout of staffing gaps is driving out employees of all ages.

On the other hand, the growing appeal of gig work means nonprofits may be able to outsource some positions. Outsourcing lets you scale your workforce as needed, rather than employing full-time staff through funding and economic downturns. For positions that require full-time employees, nonprofits may attract more candidates by offering hybrid or remote working arrangements and opportunities for career development and advancement which will ultimately strengthen the leadership team.

Automation and artificial intelligence present opportunities to enhance the efficiency of current staff members. Embracing technology and adopting new methods for program delivery and fundraising are essential for ensuring sustainability in the nonprofit sector.

4. Cybersecurity Threats

Nonprofits still sit in the crosshairs of cybercriminals. If anything, their vulnerability has expanded as they conduct more business digitally and rely on remote workers which can make it harder to implement and maintain strong internal controls. Cybercriminals also know that nonprofits often lack the necessary resources, including skilled staff and updated software, to combat their rapidly changing schemes.

A comprehensive risk assessment could reduce your organization’s risks, such as financial losses, service disruptions and reputational damage. Regular employee training can help your team recognize and respond to threats appropriately. Your organization should also use vendors that adhere to “secure-by-design” principles that treat customer security as a core business requirement, rather than simply a technical feature.

As we approach 2025, my advice is to focus on impact, embrace innovation, and work to strengthen your leadership team. These factors, in collaboration, will enhance the organization’s sustainability.