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Consultants, advisors, and boards are consistently giving nonprofits the same singular advice in 2025: Diversify fundraising sources. Why? Because the new administrations reduced appetite for federal funding has created challenges ranging from significant budget cuts to threats to organizational survival for nearly all nonprofits. When funding sources are concentrated rather than diversified, this creates disproportional riskand those risks have become reality this year. And yet, the generic advice to diversify fundraising often draws eye rolls from experienced executive directorsand rightfully so. Fundraising concentration is a natural and rational reaction to resource constraints, something that the majority of nonprofits, forced to operate on a budget of approximately 20% of revenue, have to deal with this year. After all, one donor that gives $100,000 annually is easier to manage than 1,000 donors each giving $100 a year. But if that big donor goes away, nonprofits are left scrambling to make up the difference, and the changes in the funding landscape increase the chances of this occurring. Maintaining relationships with those smaller-scale donors is more important than ever. But nonprofits simply dont have the human capital to engage with that volume of donors in the personalized ways that drive sustained relationships. The management of thousands of smaller donors requires autonomous software and automation that many nonprofits lack. Legacy automation has limits Software that nonprofits have historically used to power automation has had mixed success. Research shows that nonprofits that build integrated systems to support a more coherent donor experience at scale see higher revenue growth. In fact, organizations with fully integrated systems achieve 34% higher donor retention rates compared to those using patchwork solutions. However, automation software has its limits. While sending automated emails to thousands allows the nonprofit to reach a wide audience, theres a good chance some of those contacted have given recently. The nonprofit risks alienating recent donors by asking them to contribute again. When automation lacks an understanding of nuance, it can inadvertently weaken donor relationships. Whats more, software requires work to deliver value. Make no mistake, the value it provides is many multiples of the work input, but for resource-constrained nonprofits, thats a theoretical argument. If an organization doesnt have the resources to centralize data, integrate systems, train users, and execute software workflows, then it doesnt matter how high the return on that investment might be. The solution? Removing the work entirely with semi-autonomous tools that take the lead, leaving the humans to focus on more tactical, strategic work. The power of agentic AI With AIs widespread availability, options may seem endless, but not all tools meet nonprofits unique needs. For example, ChatGPT may be able to help draft a social media post or email, but it cant dive into an organizations data and proactively execute workflows, manage donor communications, or surface unique funding insights. AI-powered workflowscalled AI agentscan now handle executive-level tasks with various degrees of independence. For example, a semi-autonomous AI fundraising coach could be available 24/7 to answer questions, offer guidance, and help strengthen fundraiser programs. A fully autonomous AI agent might manage relationships with small donors at scale, providing each donor with personalized attention that rivals the high-touch service currently reserved for major donors. These AI tools dont assist; they act. Agentic AI constantly surfaces insights, identifies patterns, and executes routine tasks, all with minimal human intervention, scaling expansion in a way that traditional software cannot, while delivering an exponential return. When it comes to finding new funding sources, no stone can be left unturnedbut its simply not feasible for a small team to do it all. Agentic AI can take on the labor-intensive, repetitive tasks like scanning, filtering, and organizing opportunities so that staff can focus on what matters most: building relationships, tailoring strategy, and turning insights into impact. Specifically, AI agents work directly with data and bypass traditional software user interfaces, meaning they only interact with humans when necessary. They amplify nonprofit capacity rather than deplete it, meaning more fundraising and case working capacity for the humans at the core of the organization. Final thoughts Giving in the U.S. reached roughly $557 billion in 2023. Yet that figure barely scratches the surface of what’s needed to address global existential challenges like climate change, world hunger, and poverty, which would require an estimated $9.8 trillion. Reaching that scale demands bold funding diversification strategies, and that level of efficiency and scale simply isnt possible without agentic AI. AIs capabilities create a self-reinforcing ecosystem: The more impact thats delivered, the more it gets communicated. The more effectively it’s communicated, the more funding is attracted to deepen that impact. The tools are here. The data exists. The infrastructure is in place. Thats the future were building towardnot just automation, but acceleration. Scott Brighton is CEO of Bonterra.
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E-Commerce
Entrepreneurs and prospective business owners looking for ways to finance their budding companies often run into a problem: Their personal credit scores are lowwhich makes it difficult to access the loans they may need to lease a storefront or buy equipment. A solution may be on the way. Fintech company Nav is launching new features to its signature credit card to help entrepreneurs build their personal and business credit simultaneously. The cardcalled the Nav Prime Cardis designed to help small-business owners get their operations off the ground. Many of those entrepreneurs rely on their personal credit, at the very early stages, to get those operations going. As such, its a product designed for Main Street small businesses rather than for startups or those seeking venture capital or investor financing. The Nav Prime Card itself launched in 2023, while the features that allow for simultaneous credit-building (which are optional) will be launching this summer. In effect, the Nav Prime Card helps those small-business owners build their own credit scores and the credit profile of their businesses at the same time, and theres nothing else like it on the market, says Navs CEO and cofounder Levi King. A credit product born of small business experience The whole thing was born from my experience as a small-business owner. I started out fixing electric signs, King says. He recalls the setbacks he encountered while trying to acquire equipment for his companysuch as a truckdue to his business’s thin credit profile, not to mention his personal credit score not quite cutting it for lenders. So, the idea was hatched to help small-business owners in similar situations get access to the credit they need, and to boost their personal and business credit profiles. When you start a business, the credit bureaus have a record that you exist, but youll appear high risk because youre brand new and have no credit history, he says. So, Nav developed the Prime Card, creating something that didnt yet exist, and in sort of a gray area that many other fintech companies werent paying attention to. I could see the opportunity before other people, King says, referring to his days operating an electrical sign business. If youre in Silicon Valley, you get an MBA at Stanford; youre not looking at small businesses. My background as a small-business owner helped me see a future that others couldnt. A big potential impact Theres a large potential pool of customers, too, who could be interested. Nav cites data that shows almost 70% of small-business owners have a credit score below 670. And people are starting businesses like never beforethe most recent Census Bureau data shows that almost 5.5 million new businesses were launched in the U.S. during 2023, which is an increase of almost 57% from 2019. So far, King says that the people who have tried the card love it. Investors love it, too. Randy Komisar, a member of Nav’s board of directorsand a Silicon Valley heavyweight who founded Claris and TiVo, and was a former CEO at LucasArts Entertainment and Crystal Dynamicssays that Kings vision presents a big opportunity and solves a real problem for small businesses. I want to use the power and resources available to me to try and solve this problem: How can we make the small business sector stronger and more viable, and use technology to help? Komisar says. When Levi came to me with his idea, I saw it as an opportunity to have a similar impact to Intuitfor what Intuit did for bookkeeping. While its unlikely that Nav will grow to the mammoth scale of a company like Intuit, Komisar believes the companys future is bright, as it aims to address real problems for small-business owners. Im very enthusiastic about a plan that uses credit information to allow small businesses to manage their growth and sustainability in a way that theyre ill-equipped to do with the tools today, he says.
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E-Commerce
The first company I built was in 2008; we closed our seed round in May, the housing crisis hit in August, and the world collapsed. I distinctly remember Sequoia Capitals RIP good times” slide deck that September, which effectively killed the VC market overnight. We had only raised $500K and had overscaled our team. We tried to last as long as we could, but in March 2009 we had to raise again. I personally pitched 36 firms in person and they all said no. That experience forever changed how I thought about fundraising for future companies. In 2025, we’re facing a similarly volatile environment, with global economic and political uncertainties and a significant decrease in venture funding, making these lessons more relevant than ever. Honestly, if you havent already been proactive in preparing for tough economic times as a small business, it will be challenging to get out of the hole you might be in in the current market. But for founders who are just starting their journey, its still a great time to start a companythere is a lot of talent available, really early-stage funding is mostly insulated from economic downturns, and you can build a product native to AI with a super lean team. As a 3x founder and investor in over 100 startups, I’ve learned key lessons in building resilient businesses through market challenges. Here’s my advice: 1. Refine Your Value Proposition In uncertain markets, investors naturally become more risk-averse and cautious. That means its more important than ever for your startup to present a compelling, crystal-clear value proposition. Your pitch should focus on solving real, pressing problems with a clear path to monetization and should explain why you are the best in the world at doing so. Avoid hyping growth projections and potential boom-time scenarios and instead, focus on grounding your forecasts in defensible data and unit economics, demonstrating a path to profitability and a viable business model. If your product already has some early traction, now is the time to double down on telling that story and highlighting those metrics. Make your core strengths obviouswhether thats revenue growth, customer retention, or product-market fit. 2. Explore Alternative Funding Paths Valuations typically compress, deal cycles slow down, and investors become more selective during volatile periods. You should adjust your expectations accordingly. Raising less capital at a lower valuation may be necessary to survive and continue growing through those tough times. At the same time, you should be open and exploring alternative funding sources: Whether that be revenue-based financing, angel networks, family offices, strategic partnerships, or even crowdfunding. Another way companies bridge rough patches is through non-dilutive capital, like grants or government programs. Flexibility is key. 3. Extend Your Runway Disruptions to the market can happen out of nowhere, sometimes for no reason. Founders should always be prepared and shift their mindset from growth at all costs to efficient, sustainable growth. The goal is to extend runway as long as possibleideally 1824 monthsto weather any downturn and avoid needing to raise again during less optimal times. This means cutting the burn far earlier than you think you need to. Even during good economic times, keep your team very lean. Payroll typically dominates burn, so dont overscale your team based on your capital. Highlight to investors how you are being prudent with capital. Demonstrating financial discipline and adaptability shows maturity and resilience, which investors value even more when uncertainty looms. 4. Build Trust and Relationships In volatile climates, trust becomes even more critical. Begin investor conversations well before you plan to raise. Building long-term relationships allows you to cultivate trust, get feedback, and stay top-of-mind. Focus on strategic investors who offer more than just capital, such as operational expertise or valuable networks for customer acquisition and talent recruitment. These investors are more likely to support you during market fluctuations. Maintain transparency about your companys performance and challengestrying to gloss over issues can backfire. Use regular updates (emails, calls, or virtual meetings) to show progress and your ability to navigate a tough market while demonstrating the added value these investors provide. While volatility raises the stakes, it also rewards founders who are resourceful, focused, and mission-driven. By tightening your fundamentals, adjusting expectations, and building strong investor relationships, you can still find the right capital to power your startup forwardeven in the most unpredictable markets.
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E-Commerce
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