Digital privacy is mainly focused upon preventing siphoning of data, PiHole, uBlock, NetGuard(Android) can save data and thereby results in saving Internet costs. NoScript along with aforementioned tools can save compute and thereby power.
Many of the privacy focused alternatives are idealistic passion projects and so is often free. Linux ecosystem can cover almost all of our computing needs without the need for proprietary tools. LineageOS can give second lease to capable smartphone hardware limited by planned obsolescence, thereby saving costs on new smartphone.
I'm sure there are lot more to add here, But I've my point to why I think privacy not only recovers cost but is also capital efficient.
But the real question as the parent asks should be how can we make these projects sustainable? I'm sure the Linux Foundation wouldn't go bankrupt as the commercial implications are huge, Mozilla looks precarious but I feel its largely because of the management but what about that indie developer like the one above or the one developing NetGuard? How can we establish this value proposition to a layman for making a pro-privacy lifestyle choice?
Are you actually legally a US nonprofit, and if so, which kind, and are your articles of incorporation and board membership available somewhere for the public to see?
There are plenty of worthy non-profits that aren't based in the US. The OpenBSD Foundation, for example.
> One of the problems is that there is very little funding
I think your problem is self-made.
> Not sure how to reconcile the two.
Accept money in exchange for the value you create.
One of the problems is that there is very little funding available for my sort of nonprofits. Even Mozilla with their startup studio program, which is focused on privacy, target commercial ventures. I guess that the bottom line is that as a society we do not prioritize privacy over other ambitions. This is strange to me because there's some truth to privacy being a "maker of class". Not sure how to reconcile the two.