How Tariffs Impact Nonprofits: Key Insights & Actions You Can Take

🚦 A Quick Note Before You Scroll 

Think tariffs don’t affect your nonprofit? Think again. Even if you're not trading overseas, rising costs from tariffs can show up in your food bills, supply orders and even your budget. 

Let’s break down how tariffs impact nonprofits like yours—and what you can do about it. 

🧊 Real-World Examples: Where Tariffs Will Begin to Show Up 

📦 Food Banks Canned food prices will surge due to a rise in tariffs on steel. And since the food cans are made from tinplated steel, it will lead to higher prices for food banks buying staples like beans and vegetable cans. 

🩺 Medical Aid Tariffs on medical imports from China could lead to increased costs and potential shortages in the U.S. healthcare system. These higher expenses strain nonprofit healthcare providers, potentially impacting the quality and accessibility of care. 

💻 Education Access Tariffs will significantly affect the increase in cost of consumer electronics . Nonprofits providing digital learning tools face higher prices, which can limit program reach and accessibility for students.  

These examples illustrate how tariffs affect nonprofits in various sectors, from supply chain management to operational costs — highlighting the importance of preparing for tariff-related budget impacts. 

💼 Why This Matters 

• Unexpected cost increase, especially on imported goods that nonprofits rely on for their operations. 

• Disruption to program timelines due to supply chain delays. 

• Failure to meet grant or donor expectations if unforeseen costs are incurred. 

• Reactive mid-program changes that create operational inefficiencies. 

Since tariffs often aren’t top of mind for nonprofits, many don’t prepare for the supply chain risks until it’s too late. 

🛡️ What You Can Do Now 

Here are five ways to take control: 

1. Know What You Rely On 

List key goods or services that could be affected by tariffs. 

2. Communicate With Funders 

Share potential tariff impacts early. Most funders prefer transparency over surprise. 

3. Rethink Your Vendors 

Look into alternative suppliers or cooperative purchasing with other organizations 

4. Build Budget Flexibility 

Expand unrestricted funds to absorb unexpected costs stemming from tariff impacts on nonprofit budgets. 

5. Stay Informed  

Monitor neutral sources like Brookings – Trade or GlobalEdge Tariff Tools for updates on global trade policies that affect your nonprofit supply chain.  

🔄 Final Thought 

Tariffs may not always be visible, but their impact on your nonprofit can be significant. With some foresight and small adjustments, you can protect your programs from unexpected global shifts. 

Want to know more about how tariffs will impact your nonprofit? Contact the CLASS Consulting Group.   

CLASS has been a trusted advisor to board and leadership teams of nonprofits since 2002. Learn more and reach out today.