Political unrest is changing the rules of fundraising

Charity fundraising has always been sensitive to the mood of society. When politics turns volatile—elections, protests, coups, crackdowns, insurgencies, rising violence—people don’t stop caring, but the way they give changes. So do the risks, the costs, and the practical ability to move money where it’s needed.

Below are the most common (and most damaging) ways political unrest is showing up in fundraising right now—and what experienced fundraisers are doing about it.

1) Polarisation is making donors hesitant—and more suspicious

In the U.S., intense polarisation doesn’t just split voters; it splits donor psychology. Many donors are now wary that a gift will be interpreted as a political statement, especially around causes tied to race, immigration, public health, climate, women’s issues, and education. Some donors hold back entirely. Others redirect giving to “safer” categories (local relief, children’s services, veterans, animal welfare) that feel less politically charged.

Surveys and sector commentary have repeatedly pointed to divisive politics as a drag on generosity—particularly when people feel exhausted, angry, or distrustful of institutions.

Fundraising impact due to political unrest: lower response rates, more restricted giving, more “quiet donors,” and increased objections like “I don’t want my gift used for politics,” even when you aren’t doing political work.

2) Donors are shifting from international giving to domestic urgency

When a country is internally unstable, donors tend to focus inward. In the U.S., the mix of political strain plus compounding crises has pushed many donors to prioritise domestic needs over international causes.

Fundraising impact: international NGOs and global relief charities face tougher renewals and more pressure to justify “why overseas, why now,” even when global need is objectively rising.

3) Government funding cuts and political priorities are blowing holes in humanitarian budgets

Here’s the blunt reality: when governments cut aid (often during politically turbulent periods), NGOs can’t “philanthropy” their way out of the gap quickly enough.

Multiple credible sources have documented sharp contractions in humanitarian funding and growing shortfalls against global appeals, forcing program reductions and triage.

Fundraising impact:

• More emergency appeals, more often (donor fatigue rises).
• More reputational risk (“Why are you always in crisis mode?”).
• More pressure on major donors and foundations to backfill what governments used to cover—at the same time many funders are tightening.

4) Sanctions, counter-terror rules, and “de-risking” are choking payment channels

Political unrest often brings sanctions, counter-terrorism restrictions, and heightened compliance scrutiny. Even when humanitarian exemptions exist, banks and payment providers frequently take a zero-tolerance posture—delaying, blocking, or refusing transfers to “high-risk” areas. That’s the real-world effect of “de-risking”: it becomes harder to bank, harder to send funds, and harder to operate.

Fundraising impact:

• Donations get stuck or returned.
• Field programs can’t pay staff or vendors on time.
• Finance teams spend huge effort on documentation and audits.
• Donors lose confidence if money movement looks messy.

5) Crackdowns on civil society are making fundraising illegal—or dangerous—in more places

Around the world, shrinking civic space is not theoretical. Governments are passing “foreign agent” style laws, restricting foreign funding, forcing NGO registration as “agents,” and using compliance regimes to intimidate or disable organisations—especially human rights, democracy, anti-corruption, and advocacy-adjacent groups.

Fundraising impact:

• Local partners may be unable to receive grants legally.
• Donors fear being named, targeted, or investigated.
• NGOs self-censor messaging and programs to survive.
• International NGOs must rebuild models around locally-led funding and safer structures.

6) Nonprofits are getting caught in the culture war—whether they want it or not

In tense political environments, issues like education content, DEI, immigration, religion, historical interpretation, and public institutions become flashpoints. That spills into donor relations: some donors increase giving to “defend” institutions; others pull away to avoid controversy; boards become more cautious.

Even cultural nonprofits (museums, libraries, arts) report funding instability tied to political pressure and shifts in government support.

Fundraising impact: more contested donor conversations, more board risk aversion, more “values alignment” tests from donors (on both sides).

7) Political violence and security risk are changing donor behavior and event strategy

When unrest includes threats, harassment, or violence, the first thing that changes is in-person fundraising: galas, rallies, site visits, public-facing campaigns. Donors and staff weigh personal safety and reputational exposure more heavily.

Fundraising impact: higher event costs, insurance issues, more last-minute cancellations, and accelerated movement toward smaller/private cultivation and digital-first giving.

What smart charities are doing about it (the practical playbook)

This is where the “old school” disciplines matter—because they’re built for uncertainty.

A) Re-commit to neutrality and clarity

Be explicit about what you do (and do not do). Separate service delivery from advocacy messaging. Donors hate ambiguity in tense times.

B) Over-invest in trust signals

• Publish tight financials and impact reporting.
• Show governance strength and controls.
• Explain how you protect beneficiaries and prevent diversion (especially internationally).

C) Build a compliance-ready fundraising operation

If you fund or operate cross-border, assume every transfer may be questioned. Standardise documentation, KYC/beneficiary checks, and “source/use of funds” narratives. De-risking isn’t going away.

D) Diversify revenue so one political shock can’t break you

Balance individual giving, major gifts, corporate, trusts/foundations, and (where possible) earned income. If any one channel gets politically disrupted, you keep breathing.

E) Localise where you can

In restrictive environments, local funding and local governance structures can be more resilient than foreign inflows—especially where “foreign agent” rhetoric is rising.

F) Scenario-plan your appeals calendar

Assume disruption around elections, sudden policy changes, protests, sanctions announcements, and conflict escalations. Pre-draft contingency messaging and donor FAQs.

Political unrest doesn’t just “make fundraising harder.” It changes what donors feel is safe, what governments fund, what banks will process, and what civil society is permitted to do. The charities that will win in this environment are the ones that double down on fundamentals: trust, clarity, compliance, disciplined stewardship, and diversified revenue—while staying nimble enough to respond when the ground shifts.