"As 2025 unfolds, nonprofit leaders are not simply planning around inflation, donor fatigue, or rising program costs. They're operating in a landscape where federal support is unstable by design: funding cuts, shutdowns, targeted investigations, threats to strip nonaligned nonprofits of their status -all are being used by ideological operatives in the halls of power to attempt to cripple our sector."
"The waves of funding cuts already implemented since January 2025 have left the nonprofit sector reeling. United Way Worldwide described the moment as "a difficult funding environment" that has now become "even more perilous," as shutdown delays compound the earlier rescission of roughly $425 billion in federal funds across multiple sectors. The Urban Institute surveyed nearly 3,000 nonprofit leaders about their top concerns for 2025. Their findings are stark:"
Since January 2025 the administration and congressional allies have enacted executive orders, regulations, and laws targeting nonprofits whose missions or values conflict with the White House. Federal support has been made unstable by design through funding cuts, shutdowns, targeted investigations, and threats to strip tax-exempt status, aiming to cripple nonaligned organizations. New waves of funding rescissions and shutdown delays have left the sector reeling, including an earlier rescission of roughly $425 billion across multiple sectors. An Urban Institute survey of nearly 3,000 nonprofit leaders found 55 percent named financial health as their top concern and 92 percent of those cited financial uncertainty rather than any single funding stream. Nonprofit leaders must create strategic budgets, assess new risks, and deploy tools to enable survival and mission delivery under heightened political and fiscal pressure.
Read at Nonprofit Quarterly | Civic News. Empowering Nonprofits. Advancing Justice.
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