For Philanthropy, the Moment is Now

Private foundations are navigating rough waters right now. With deep federal funding cuts and rising need across nearly every sector — education, mental health, housing, food security — foundations are being asked to do much more. At the same time, they face increased scrutiny from the Administration on their focus areas, presenting real concerns about their tax exempt status.

This moment brings new pressures for sure, but meaningful possibility as well. Some foundations are jumping in – others are on the sidelines, still processing this change and their role in it. This is an urgent and important time for foundations and high-net worth individuals to jump into the arena – and do all they can to protect vulnerable communities.

Over the past few months, Volution Advisors Managing Partner Jacquelyn Davis conducted ten interviews with foundation leaders and high net worth individuals across the country — urban and rural, large and small. She wanted to understand how foundations are responding to the shifting landscape and where they see both risk and opportunity. She kept the interviews anonymous so leaders could speak freely. And while the contexts and some specifics varied, some common threads emerged.

1. Some Foundations Are Showing Up Differently

Nearly every leader Jacquelyn spoke with talked about showing up more intentionally and authentically— and trying to adjust to a vastly changed landscape. This means revising timelines; doubling down with increased, urgent funding for current grantees; removing unnecessary reporting burdens; and listening more. One leader told me, “We’ve stopped pretending we’re the experts. The people doing the work are – and right now this work is grueling. The need in front of our grantees has multiplied and their funds are shrunk.  That’s a painful combination.” Funders are trying to show up as thought partners with more humanity and humility. Some funders spoke of facing the realities on the ground together with their grantees.

2. Nimbleness is No Longer an Option — It’s Necessary

Some foundations are ditching rigid, long-range strategic plans in favor of shorter, more flexible and timely funding. The context has shifted dramatically and many funders recognize the response needs to as well. Foundations talked about embedding contingency planning into their everyday work. It’s less about “setting a vision for 2030” and more about “what does the next year demand of us — and how can we be useful?”

3. Rural Communities are at Greatest Risk

Several foundations working in rural regions raised concerns about the growing disparity in access to resources. As federal programs are gutted, rural nonprofits are especially vulnerable — often operating without robust infrastructure, lack of advocacy efforts and even smaller funding bases to absorb the cuts. One foundation surveyed grantees across their region and is now using the data to build toolkits, offer technical assistance, and shift their own grantmaking requirements.

4. Growing, Rather than Constricting, is Essential in Many Cases

A few foundation leaders emphasized that now is not the time for small, cautious grants. “The communities we care about are facing urgent, compounding crises – from educational disruption to mental health challenges to economic instability and food insecurity.”  Some nonprofits need to scale rapidly to address urgent needs.  Without immediate, multi-year funding, it’s next to impossible for grantees to add capacity and meet the moment. 

5. Innovation Requires Breathing Room

In times of stress, many nonprofits are forced into a survival mindset. But some funders are creating space for innovation — offering unrestricted support, pausing traditional benchmarks, and inviting grantees to experiment with new models. “We need to be willing to fund ideas that might fail,” one leader said. “Because that’s how we find what might really work.” This isn’t about abandoning accountability. It’s about recognizing that true equity and progress require a willingness to disrupt business-as-usual.

6. The Chilling Effect is Real

One undercurrent that emerged across several conversations — sometimes hesitantly, sometimes bluntly — was the fear of federal scrutiny. Specifically, the  current administration’s increased focus on DEI-related funding has had a silencing effect. Foundations that have long supported racial equity, immigrant rights, LGBTQ+ advocacy, and similar issues are worried: Will this put our tax-exempt status at risk? What happens if we get targeted?

This fear is not abstract. A few funders described pulling back language on their websites. Others spoke of internal debates over whether to fund certain coalitions or convenings. The result is a creeping self-censorship that stands in direct tension with the values of many foundations — and the needs of the communities they serve.

So Where Do We Go From Here?

The stakes are high. But so is the possibility.

• Jump In - Now. This is not the moment to play it safe. Communities are being devastated by deep cuts, and need bold, responsive, and unapologetically equity-driven philanthropy. Foundations are uniquely positioned to take risks and put themselves on the line – they have resources, more insulation from government retaliation and retribution, and freedom to lead. 

• Move Money Faster Without Strings. The old playbook falls short now. Funders need to move money faster – and without micromanagement.  That means larger, multi-year, unrestricted grants.  Let nonprofits – those closest to the work and people they serve –  do what they do best: grow, adapt, innovate, and meet the surge in demand. Help them and the communities they serve thrive, not just survive. 

• Increase Scale Funding. Nonprofits doing the heavy lifting – immigration defense, food access, housing security – need to scale now. That takes a bigger team.  Bringing on additional staff requires increased, stable, multiyear funding to retain the team and advance the work.  

• Tap the Endowment. This is the moment. Not just for mandated disbursements to maintain 501c3 status – but for deeper commitment.  Use the endowment.  This isn’t a regular time, it’s unprecedented.  This is a moment in time – and leveraging more capital is essential to soften the blows on real people and communities and to bridge organizations facing real risk of contraction or closure.  

• Fund Systems Change. Fuel Advocacy. Let’s be realistic too: philanthropy can’t replace the scale of public funding.  No foundation – or even all of them together – can backfill what the government cuts. That’s why it’s critical to go upstream. Fund the changemakers working to shift policies, dismantle inequitable systems that keep communities in poverty, and reduce the need for public assistance. Support community organizers, movement builders, and advocates who are fighting for the polices that prevent these crises in the first place. Advocacy funding delivers real ROI – research shows every dollar spend on advocacy and policy yields over $115 in social return. If we want long-term impact, we can’t just treat the symptoms. We have to address the root causes. 

• Make Connections. While there is great need to move money faster, money alone is insufficient. Connecting organizational leaders with each other to share ideas, process the shifts, get support, and brainstorm solutions could make an enormous difference. Nonprofits face uncharted water – connections and relationships are important to learn, grow, and have the support needed to continue their impact.

Listen harder. Act faster. Fund bigger. Give flexibly. Be bold. And refuse to let fear define philanthropic work.

Because if philanthropy doesn’t step up — who will?

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Jacquelyn Davis is Managing Director of Volution Advisors, with 25 years of experience driving innovation across philanthropy, government, and social enterprise. A trusted advisor to leading foundations, she specializes in strategy, systems change, and high-impact partnerships that advance equity and performance.