When the World Shakes, Nonprofits Step Forward

The crises of recent years—be they economic, political, or global health-related—have taught us one thing: the world turns to nonprofits when everything else breaks down. Food banks, housing initiatives, health clinics, and educational programs didn’t close when the world did. Instead, they scaled up. They innovated. They adapted.

But while the public relies on them, the financial foundation of many nonprofits remains fragile. And that’s where the conversation between Stephen Halasnik, Managing Partner of Financing Solutions (The largest provider of unsecured nonprofit lines of credit) and BlueHub Capital CEO Elyse Cherry begins: not with despair, but with a call for reinvention.

“In the nonprofit sector, adaptation isn’t just a survival skill,” says Cherry. “It’s a form of leadership.”

Breaking the Cycle of Scarcity

For decades, nonprofits have been told to do more with less. Don’t spend too much on overhead. Stretch every dollar. Be grateful. But what if that’s the wrong framework entirely?

Cherry doesn’t hesitate. “This starvation mentality—it’s outdated and damaging. We expect nonprofits to solve systemic issues, but we give them Band-Aids and measuring tape instead of real tools.”

At BlueHub Capital, Cherry oversees a portfolio that has put over $2 billion to work in affordable housing, healthcare, education, and economic development. Her lens is sharp: nonprofits must be treated as serious economic engines, not just moral causes.

It’s a view Halasnik shares. As co-founder of Financing Solutions, which provides lines of credit to small nonprofits nationwide, he sees firsthand how even well-run organizations are hesitant to seek financial flexibility. “They’re afraid of debt,” he says. “But that fear often stems from a lack of tools, not a lack of capability.”

Innovation Doesn’t Wait for Permission

If necessity is the mother of invention, then crisis is its catalyst. In 2020 and beyond, countless nonprofits found themselves building new systems on the fly. Youth programs went virtual. Mental health services scaled up remote counseling. Food delivery services emerged from organizations that had never owned a truck.

These weren’t marginal tweaks. They were radical reimaginings of mission delivery.

“Some of the most creative thinking in the social sector happens when the pressure is at its highest,” Cherry says. “But the question is—how do we make that ingenuity sustainable?”

What’s missing, she argues, is investment—not just in programs, but in infrastructure. Innovation isn’t free. It requires time, technology, staff, and often, the freedom to fail. In short: it needs capital.

Credit Is Not a Four-Letter Word

Debt in the nonprofit sector carries a stigma, but both Cherry and Halasnik argue that needs to change. A line of credit, they say, is not a bailout—it’s a runway. It allows organizations to keep their doors open while waiting on delayed grants, to launch programs when opportunities arise, and to navigate unpredictable nonprofit cash flow without panic.

“You wouldn’t drive a car without a spare tire,” says Halasnik. “A credit line is that spare tire. You hope you never need it, but when you do, you’re grateful it’s there.”

BlueHub’s model goes even further: they lend to nonprofits that others won’t touch, and they do so with support and intention. “We’re not here to extract,” Cherry says. “We’re here to partner.”

That ethos matters, especially for organizations led by women and people of color, who often face disproportionate barriers to traditional financing.

Leadership in the Time of Ambiguity

The ability to navigate a nonprofit crisis isn’t just about capital. It’s about leadership—clear, empathetic, forward-looking leadership that doesn’t flinch when the answers aren’t obvious.

“Strong leaders don’t pretend to have it all figured out,” says Cherry. “They communicate clearly, they make tough decisions transparently, and they create a culture where their teams feel grounded, even in chaos.”

In times of upheaval, staff look to leadership for not just direction but reassurance. That responsibility can be heavy. Halasnik sees it in the clients he serves: leaders who burn out trying to hold the whole organization—and its mission—together.

But he also sees something else: resilience. “The nonprofit world is full of people who are tougher and more inventive than anyone gives them credit for,” he says. “Give them the right support, and they’ll move mountains.”

Capital That Reflects Community

Money is never just money. It reflects values, trust, and priorities. Cherry believes that capital should be aligned with the mission it supports—and that includes giving local leaders control over how funds are used.

“We’ve learned that the people closest to the problem are closest to the solution,” she says. “But historically, they’re often the furthest from the funding.”

This disconnect perpetuates inequality in the sector. Organizations serving marginalized communities are often underfunded or restricted in how they can use support. That limits their ability to grow, innovate, or even stabilize.

To fix this, nonprofit funders—public and private—must shift their approach. That means offering unrestricted support, making funding decisions more equitable, and valuing community expertise over polished presentations.

Learning From Crisis, Building Toward the Future

Crises are painful. They’re messy. But they’re also clarifying.

“The pandemic showed us what’s essential,” Cherry reflects. “It cut through the noise and revealed which systems were working—and which were broken.”

Some organizations have emerged from crisis stronger, not despite the challenges, but because of how they responded. They built better digital infrastructure. They expanded services. They attracted new donors who saw their effectiveness under pressure.

“This is our moment to build back differently,” Halasnik says. “Let’s not go back to business as usual.”

Collaboration Over Competition

Nonprofits often feel like they’re competing—for donors, for grants, for recognition. But Cherry believes the real opportunity lies in collaboration. “We have to stop acting like we’re in silos,” she says. “No single organization is going to solve homelessness or health disparities alone.”

That collaboration must extend beyond the nonprofit world. Philanthropy, government, and nonprofit finance must come together to build ecosystems of support. BlueHub, for example, often works alongside other lenders, technical assistance providers, and local stakeholders to structure deals that make sense for everyone.

“There’s power in partnership,” Cherry says. “Especially when times are tough.”

A Vision for What Comes Next

As the conversation between Halasnik and Cherry winds down, it’s clear they’re not just focused on crisis response—they’re focused on what comes after.

Their vision isn’t one of bandages or bailouts. It’s of nonprofits with robust leadership, access to responsible capital, room to experiment, and funders who treat them as partners, not dependents.

“This sector is full of leaders who can—and do—change the world,” Halasnik says. “But they can’t do it with one hand tied behind their back.”

Cherry agrees. “We need to stop asking nonprofits to be scrappy and start helping them be strategic. That’s how real change happens.”

Epilogue: The Cost of Playing Small

For too long, the nonprofit sector has been asked to dream modestly, spend frugally, and grow slowly. But the challenges we face today don’t call for modesty. They demand audacity.

Now is the time to stop playing small. To invest in the infrastructure of justice. To fund innovation, not just implementation. To treat nonprofit leaders not as caretakers of crisis, but as architects of a better future.

That’s not just a financial shift—it’s a philosophical one. And it’s long overdue.