What Do Tariffs Have to Do With Fundraising? More Than You Think.
If you work in philanthropy or the nonprofit world, you probably don’t spend much time considering tariffs.
But as 2025 opens with a fresh round of U.S.-imposed tariffs and global trade tensions heating up, it’s worth asking: what does all this economic policy have to do with fundraising, donor psychology, and the causes we serve?
Short answer? A lot more than you might imagine.
Let’s unpack what’s happening and why fundraisers and nonprofit leaders should pay close attention.
The Big Picture: Trade Wars Are Back
In April 2025, former President Donald Trump re-ignited global trade tensions with sweeping new tariffs, including:
- 10% baseline tariffs on all U.S. imports
- Steeper rates for countries like Vietnam (46%), Taiwan (32%), and South Korea (20%)
- Threats of retaliation from the EU, Canada, and Mexico
And just like that, the specter of a global trade war is back, dragging markets, shaking corporate confidence, and potentially raising prices across sectors.
So What Does This Mean for Philanthropy?
While trade policy might feel far removed from donor relations or development strategy, the downstream impacts are real — and often underestimated. Here’s how tariffs can ripple into our work:
Economic Uncertainty = Donor Hesitation
When businesses brace for higher costs or supply chain disruptions, charitable giving often slows, especially corporate giving and major gifts tied to market performance. If you’re seeing “wait and see” energy from donors, this might be why.
Inflation + Consumer Anxiety = Less Room for Generosity
Tariffs tend to increase prices. When groceries, gas, or household goods go up, it puts pressure on everyday donors who might otherwise give $25 or $50 a month. Expect tighter wallets and more “maybe next month” emails.
Stock Market Volatility = Shrinking Gift Pipelines
Many major gifts come from appreciated stock. If the markets react negatively to ongoing trade tensions, the pipeline for asset-based giving might shrink. This can be especially tough for arts and cultural institutions, higher ed, and healthcare foundations.
Global Programs May Face Double-Edged Pressure
Nonprofits working internationally could face higher operating costs (due to disrupted imports) and reduced support (as donor attention turns inward during times of perceived national risk).
What Can Nonprofits Do About It?
You can’t change macroeconomics. But you can adapt your strategy to meet the moment.
Here are a few ways:
Final Thought: Fundraising Doesn’t Happen in a Vacuum
If we only consider philanthropy in isolation, outside of economics, politics, or global policy, we’re missing half the story.
Trade wars may not show up in your CRM reports, but their psychological and financial impact will be felt by your donors. And the sooner we adjust, the better prepared we’ll be to keep generosity flowing, even when the world feels uncertain.
Let’s stay nimble. Let’s stay human. And let’s stay in tune with the economic stories behind the donations we depend on.