We are seeing significant government funding as a result of the Inflation Reduction Act, which is the current administration’s response to the troubled economy. My concern about this is that it could be presenting another stop gap similar to what may have happened with the pandemic funding. Not that I don’t support these initiatives, but organization’s need to understand to what extent these inflows are having on their need to address structural problems in their business model. I think that an organization needs to know its most promising funding model, and design sustainable plans around that model.
Donor income may fluctuate in a tough economy, especially if the organization relies on smaller individual donations.