Nonprofits say they are in a crisis

"66% of the nonprofits surveyed in February by the Center for Effective Philanthropy said they have concerns about their organization's financial stability. The share of respondents reporting a deficit - more money going out than coming in - rose to 39%, from 22% in 2022. Almost three-quarters of CEOs report that their organizations have experienced increased demand for services."

"The survey covers just a slice of the sector. The organization polled leaders of 380 nonprofits that receive at least some foundation funding a year - and didn't include universities or hospitals. Zoom out: Government grants to nonprofits total at least $240 billion a year - more than double all foundation giving combined, according to a report from the Urban Institute out earlier this year."

"In 2023, there was no congressional district in the country where the typical grant-receiving nonprofit could have covered its expenses without government funding, according to the report. Between the lines: People don't think of the nonprofit sector as a market, per se, but right now it's looking like one in crisis."

"As the federal government has pulled back, groups are increasingly seeking support from other sources - meaning there's more competition for donations. Even groups that don't rely on government funding are feeling the pinch. What they're saying: Nonprofits and programs affected include those that weren't viewed as particularly partisan, says Phil Buchanan. president of the center."

In February, 66% of surveyed nonprofits reported concerns about financial stability. The share reporting deficits rose to 39%, up from 22% in 2022. Almost three-quarters of CEOs said their organizations experienced increased demand for services. The survey covered 380 nonprofits receiving at least some foundation funding annually and excluded universities and hospitals. Government grants to nonprofits total at least $240 billion per year, more than double all foundation giving combined. In 2023, no congressional district had a typical grant-receiving nonprofit able to cover expenses without government funding. As federal support has pulled back, nonprofits seek other funding sources, increasing competition for donations and affecting even groups not reliant on government funding.

Read at Axios