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What do we do if our main funder leaves?

Several organizations we talk with are losing their biggest funder. This is what we see them exploring, what didn't work and what's worth doing before the notice arrives.

Felipe SotoOctober 14, 2026 · 5 min read

In 30 seconds

  1. 01Diversifying is planned before the funder announces it's leaving, not after.
  2. 02Sending more impact updates doesn't make people give more: what matters is the relationship and the timing.
  3. 03Ask for funding that fits your stage, and show progress through milestones.

This year we heard the same question from organizations in several countries: what do we do if the funder that keeps us going leaves? In some cases it's a large foundation that decided to change focus. In others, it's international cooperation pulling out of the region. The cause changes; the anxiety is the same.

When the big fund pulls out

The first thing we see is that almost no organization planned for it. While the big fund was there, the whole team worked to deliver for that funder: its reports, its indicators, its deadlines. Looking for other sources felt like a luxury for when there was time.

Three paths we see being explored (and what we don't know yet)

None of these paths has clear results yet in the organizations we work with. We share them for what they are: explorations in progress.

What they're testing

  1. 1

    Individual donors

    An alliance of organizations in Mexico and Central America set up lines of work on operations, financial sustainability and individual donors, so each organization stops depending on a single fund.

  2. 2

    Sponsorships and partnerships with companies

    Education groups that run on volunteers are talking with private schools, universities and companies to offer their program in exchange for steady support.

  3. 3

    Earned income

    Some organizations are testing products tied to their cause, like a documentary or a song whose revenue partly goes to the program. It's a long-term bet.

What didn't work: more updates isn't more donations

A commerce platform tied to social causes in Chile tried something that seemed obvious: sending its users real-time impact updates. The idea was that, seeing the results, people would buy or give more. Few people engaged with those updates, and there was no increase in repeat purchases or donations.

The lesson isn't that telling your impact is useless. It's that informing doesn't replace the relationship. A mass update doesn't change what a donor does; a conversation at the right moment does.

Go deeper

Before reading your project, the funder already checked three things

We talked with someone who reviews applications at a corporate foundation: what they check before reading, what happens after you win, and why, now that AI makes every application sound good, your results are what set you apart.

Ask according to your stage

Another pattern: organizations applying to funds designed for a stage they haven't reached yet. They lose on fit, on how they manage their finances or because they can't show measurable results. And every lost application costs the team weeks.

An alternative we're discussing with several organizations is asking for funding in stages: a small first amount tied to a milestone that can be measured, and the next one when that milestone is met. For the funder it's less risk; for the organization, a way to build trust little by little.

Go deeper

Which number do we show our funder?

You have lots of information and a report full of averages. Your funder wants to see just one thing: whether something changed.

If the plan changes halfway through, say so early

With the funds that do arrive, something happens that isn't talked about much: the plan changes. In a group of organizations funded by the same corporate foundation, several modified their pilot mid-execution. Each change opened a full review, with more paperwork and more time.

Changing the plan isn't the problem; real programs change. The problem is the funder finding out late. Telling them about the change early, with the reason and what you'll measure now, turns an alert into a conversation.

Where to start

  • List your sources of income and what share comes from each. If a single one is more than half, that's your main risk.
  • Pick just one new path to explore this year, not three. Test it small and measure whether it works.
  • Review which funds you apply to: do they fit your stage, or the stage you aspire to?
  • If your program is going to change, tell your funder before they discover it in the report.

Felipe Soto

Co-founder · Sumadots

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