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Burnout, underfunded programs, and staff turnover aren’t inevitable. They’re symptoms of a false narrative. Discover the bold strategies that replace fear with resilience and growth.
Breaking out of a scarcity mindset (see my prior post in this series) isn’t easy – especially in an uncertain environment – but it can be done. Here are actionable strategies for nonprofit leaders in 2025 to foster a more abundant, resilient approach:
Let's begin with an important acknowledgement that every nonprofit should shout from the rooftops: Resources for nonprofits and the beneficiaries they serve are scandalously and unsustainably scarce. In Managing Your Nonprofit for Resilience, I noted that if the US economy is an engine, nonprofits are its vital lubricant, reducing friction and helping the otherwise sharp edges of society to function more safely, productively, and humanely. As a nation we have failed nonprofits, who do so much with so little. The Trump Administration's predations on nonprofits and their beneficiaries is only the latest and most dramatic instance of this treatment. Until and unless we fund nonprofits with their true costs and respect them for the critical work they do, nonprofits will continue to suffer actual scarcity, much to our national shame.
Challenge the narrative that spending on infrastructure, staff, or technology is a “luxury.” In reality, these are mission-critical investments that enable greater impact. For example, investing in staff development or a modern CRM system can amplify your outcomes and save money in the long run. Help your board see the cost of not investing: burnout and turnover carry real financial costs, as does falling behind on efficiency. Many nonprofits have learned that cutting too deep undermines their mission – financial instability can force organizations to scale back programs or even close their doors, defeating their purpose. By presenting capacity investments as risk reduction and impact enhancement, you can shift the conversation from “we can’t afford that” to “we can’t afford not to do that.
As a leader, model and nurture a mindset of possibility over limitation. This starts with language and trust. Encourage your team to bring solutions and ideas, even if they require resources – in other words, avoid shutting proposals down reflexively due to cost. Make it safe to discuss “how might we fund this?” instead of immediately “we don’t have money for that.” Internally, work to eliminate the stigma around self-care and sustainable work habits. No nonprofit can afford constant burnout; when staff consistently work 60-hour weeks because “there’s not enough time or people,” it’s a sign to re-prioritize and possibly scale programs back strategically rather than silently suffering.
Leaders like you can set the tone by insisting that vacations are taken, professional development is encouraged, and workloads are realistic. This runs directly counter to the old scarcity culture, but it pays off in retention and performance. (Even funders are recognizing the burnout crisis – many now explicitly ask how you support your staff. Foundations want to see that you’re investing in your people, not running them into the ground.)
Foster collaboration over competition. Remind your team (and board) that partnering with peer organizations or sharing knowledge doesn’t detract from your success – it can create new opportunities. In fact, some funders in 2025 require or strongly encourage collaboration in grant proposals, precisely to overcome redundant, siloed efforts born of scarcity thinking. By building a culture of trust, learning, and openness, you gradually replace fear-based management with a more confident, proactive ethos.
One reason nonprofits fall into scarcity traps is the absence of agile planning – without a plan, every new challenge feels like a fire demanding all resources. Adopting a lean strategic planning process can be a game-changer. Instead of a rigid five-year plan that sits on a shelf, lean planning (like the approach we use in our Foundations for Growth program) keeps your strategy responsive and fluid. It’s all about setting strategic priorities but frequently revisiting them in light of new information. For example, implement 90-day action cycles or use rolling forecasts rather than static annual budgets. This allows you to adjust before small issues become big crises. Hand-in-hand with planning comes risk management – not as dreaded compliance, but as a practical tool for abundance. The result is a culture of continuous improvement rather than constant firefighting. When your whole team is engaged in scanning for opportunities and threats, you’re less likely to be blindsided – and thus less likely to revert to panic-driven, scarcity-based decisions.
Many nonprofits say “people are our greatest asset,” but continue to budget in ways that short-change staff and systems. Align your finances with your values. This might mean explicitly budgeting for adequate salaries, benefits, and rainy-day reserves before expanding programs. Yes, that can mean making tough choices about growth – but funding 100% of a few priorities is better than 60% of everything. An honest budget that fully covers real costs is a foundational step out of scarcity thinking.
Equally important is how you communicate these choices to stakeholders. Be transparent with funders and donors about the need to fund overhead and capacity. The good news is that more funders “get it” now: they know underfunding overhead leads to fragile nonprofits. Make the case by showing how past capacity investments improved outcomes. For instance, if a new volunteer management system let you engage 50% more volunteers, tie that back to mission impact. When donors see a return, they are more likely to support “non-program” expenses.
Also, don’t shy away from asking for general operating support – as noted, a vast majority of foundations now give at least some general support. You can reference this broader trend when talking to funders: “Over 90% of foundations are providing general support now; we hope you’ll join that movement so we can direct funds to where they’re most needed.” In short, let your budget and your fundraising pitches reflect an abundance mindset – one that values the core strength of the organization as the vehicle for delivering on mission.
By implementing strategies like these, nonprofit leaders can begin to loosen the grip of scarcity thinking. The goal is to create a positive cycle in place of the vicious cycle: investing in capacity leads to better outcomes and more stability, which in turn attracts more support and allows further smart investments. It’s about confidently moving from a stance of “What do we lack?” to “How can we make the best use of what we have, and actively seek what we need?”
In closing, Challenge 5 – the nonprofit scarcity mindset – remains a pressing issue in 2025, but it is one we can tackle with intentional effort. The past few years have tested nonprofits in unprecedented ways, reminding us that resilience is not just about money in the bank, but about mindset. Scarcity thinking may have been a default in the nonprofit sector for decades, yet it is not inevitable. By reorienting our culture toward abundance, investing in core capacities, and using tools like lean planning and risk management to navigate uncertainty, we empower our organizations to not only survive hard times but thrive beyond them.