Tariffs and the Global Nonprofit Sector

Read time: 3 min

👋🏾 Hey! I’m Sid and this is The Philanthropy Futurist, a weekly advice column preparing you for the future of the nonprofit sector. Each Friday, I tackle reader questions about measuring impact, driving growth, and managing your nonprofit.

This Week’s Newsletter at a glance:

• Tariffs and the Global Nonprofit Sector

• Philanthropy News From This Week

• Sid’s Book Recommendation

Tariffs and the Global Nonprofit Sector

Last week’s newsletter was a bit longer than usual, so this week I’m going to keep things short.

As you may have heard, the U.S. is entering a new era of trade policy…marked by sweeping tariffs on goods from China, the EU, and beyond. While much of the focus is on manufacturing and tech, the ripple effects will likely hit the nonprofit sector— possibly harder and faster than many realize.

7 Ways Tariffs May Impact Your Organization

1. Higher Costs For Supplies & Materials: From construction equipment to tech devices and more— imported goods will likely get more expensive

2. Global Supply Chain Disruptions: Delays in goods and logistics can affect aid deliveries, program timelines, and operational planning— especially for international NGOs

3. Increased Operating Costs: Inflation may drive up rent, utilities, transportation, food, and more— tightening already strained budgets

4. Greater Demand For Your Support Services: Price hikes and job losses in certain industries can mean more individuals and families turning to nonprofits for support

5. Funding Challenges: Corporate partners, foundations, and individual donors may cut back as markets react to trade instability

6. International Program Strains: Humanitarian and global development efforts may face logistical or diplomatic setbacks

7. Need For Stronger Advocacy: Nonprofits must raise their voices in shaping trade policy, especially when communities are caught in the crossfire

International and U.S. Impact

Internationally, organizations providing humanitarian aid or development support will need to navigate disrupted partnerships, rising shipping costs, and policy volatility. The global nature of nonprofit work makes these shifts almost impossible to ignore.

Domestically, these changes could mean fewer resources, higher demand, and tougher decisions. A housing nonprofit might suddenly see material costs rise by 30%. A food bank may face both supply chain delays and a surge in need— all at the same time.

How Nonprofits Can Prepare

Nonprofit Leaders must take proactive steps now:

• Audit Your Supply Chains — Identify where you rely on imports and explore alternative vendors

• Revisit Your Budget — Plan for inflation and build in contingency reserves where possible

• Strengthen Donor Relationships — Be transparent about challenges and how support can close the gap

• Advocate Strategically — Mobilize your network, team up with sector allies, and make sure policymakers understand the real impact tariffs have on your mission

• Stay Nimble — This is a moment for scenario planning, quick pivots, and partnership

Tariffs may seem like a policy issue far removed from community impact— but the nonprofit sector knows better. Those closest to communities often feel the effects first— through rising costs, increased demand, and tighter resources. I’m confident with the right foresight and strategy, nonprofit leaders can navigate the potential turbulence ahead and continue delivering on their missions.

That’s all for this week!

Next week, I’ll be launching a new collaboration series with Anthony Conley called Connecting the Dots. Stay tuned for more details— you won’t want to miss it!

Have questions you want answered? Submit questions using this form and I’ll work hard to get you the answers by way of this newsletter.

Philanthropy News From This Week

• China strikes back with 125% tariffs on U.S. goods as trade war intensifies

• The State of U.S. Tariffs as of the Week of April 7, 2025

• Economic Effects of President Trump’s Tariffs

• Pasadena Community Foundation launches Altadena Builds Back Foundation in Los Angeles

Sid’s Book Recommendation

Each week, I recommend a book or film that has impacted my life in a positive way. My recommendation this week is:

Lean Thinking by James P. Womack and Daniel T. Jones

This book is a foundational work that introduces the principles of Lean methodology, focusing on eliminating waste and optimizing value creation in organizations. The authors outline five key principles: define value, map the value stream, create flow, establish pull systems, and pursue perfection. You'll want to read this one. Learn more.

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