The nonprofit and social impact sector is bracing for a new kind of crisis — one driven not by a sudden disaster, but by the slow erosion of federal funding for health, human services, and conservation efforts. The trickle-down effect will be widespread, creating a chain reaction of funding realignments, unexpected shortfalls, and increased competition for limited resources.
For many organizations, these budget shifts won’t be a distant concern — they’ll be an immediate existential threat. Many providing direct services will find themselves forced to justify their existence, making the case for why food access should take priority over education, or why housing deserves investment over healthcare. But this is a false choice. These issues are not isolated — they are interconnected, part of what we at Next Stage call the social drivers of everything.
No single mission stands alone. The success of any individual — or an entire community — relies on the work of many. And that’s exactly why social good collaborations are no longer optional. They’re a necessity.
Crisis as a Catalyst for Collective Action
Next Stage is motivated to support collaboration for exactly this reason, and our work to advance collective efforts is becoming a bigger part of our company’s service offerings.
Given the importance of collaboration to the funding community, one might expect a more expansive body of evidence-based research advocating for it. The Sustained Collaboration Network makes a compelling case for social good collaborations in their 2024 report, Nurturing Nonprofit Collaborations: Insights for Philanthropic Funders. Of the 45 collaborations studied, 73% demonstrated quantifiable success, reinforcing the effectiveness of collective approaches.
Unfortunately, it often takes a crisis to bring people together to collaborate. When a hurricane decimates a community or an earthquake shakes the infrastructure of a city, the institutions positioned to help leap into action. No one is debating mission creep or defending their funding sources when a crisis is actively causing harm.
Our passion for collaboration was forged in the early days of the COVID-19 pandemic — another crisis that taught us a lot about the interrelationship of social impact. It proved the importance of neighborhood-level trust brokers — community-based organizations (CBOs) that serve as a critical bridge to ensuring the delivery of services (and vaccines) to disinvested community members uncertain of who to trust. Our communities were forever changed by the pandemic, with CBOs now firmly positioned as a critical link in the supply chain of social good.
The Next Crisis Is Already Here
The dismantling of America’s social safety net is happening with record speed. Government and nonprofit service providers alike are preparing for significant funding cuts that will negatively impact individuals living below the poverty line (and this is to say nothing of the global impact of dismantling USAID, but that is a blog for another time).
Like a rollercoaster approaching the zenith of its incline, we’re preparing ourselves for the uncertainty of the plummet still to come. If only we could transport ourselves a few years in the future where, with the benefit of hindsight, we’d be able to offer counsel to each other. We might share the following as advice:
- Leverage preexisting relationships. The hardest time to build trust is in the middle of a crisis. Your best bet is to tap into partners where there’s already a history of working together. That being said, if you haven’t yet mapped out your ecosystem of collaborators, now is the time. Identify organizations in your network with complementary missions and aligned values, and work to deepen those relationships. The strongest collaborations don’t start with formal agreements — they begin with mutual trust and a willingness to support one another.
- Develop your communication carefully. Organizations can fall into the trap of positioning their funding crisis as the main headline rather than the outcomes of their services. The sudden loss of funding makes for a compelling news story, but it typically doesn’t motivate generosity the way human-centered storytelling can. Donors, funders, and stakeholders need to understand the people behind the numbers — the lives changed, the impact made, and the ripple effects of the work. Now’s the time to refine messaging, ensuring that your organization’s value is clear, compelling, and easy to articulate.
- Manage for now, but plan for the future. While the need in front of us feels urgent and visceral, it’s important to take the long view. Your institution is likely going to need to manage change and make difficult decisions in the months and years to come. But keep in mind that an inspirational vision is among your most important assets. In times of uncertainty, people follow leaders who offer more than just stability — they follow those who can paint a picture of what’s possible. Even as you navigate immediate financial challenges, stay focused on the bigger picture. What does success look like five years from now? How can your organization evolve to meet the changing landscape?
A Time for Collaboration, Not Competition
We’re approaching an inflection point. The months ahead will test organizations in ways they may not yet fully understand. But if there’s one lesson to be learned from past crises, it’s this: no one wins by going it alone.
No single mission is most important, because the success of any service provider is dependent on the work of others. Collaboration is not just a strategy for survival — it’s the best way to drive meaningful, sustainable impact.
This isn’t the time for territorialism or scarcity mindsets. It’s a moment to double down on partnerships, lean into collective solutions, and recognize that our greatest strength has always been — and will always be — each other. The question isn’t whether collaboration is necessary. The question is whether we’ll embrace it before the crisis forces us to, and if the lessons learned will lead to a permanent change to how social good gets done.
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