A new report found nonprofit leaders in New York and nationwide are worried about the country’s political and economic climate.
The 2025 State of Nonprofits report showed risks to funding from federal budget cuts and polarization of nonprofit work are top concerns.
Elisha Smith Arrillaga, vice president of research at the Center for Effective Philanthropy, said nonprofit leaders feel the current climate exacerbates long-term feelings of burnout.
“Their staff are concerned about their own personal safety,” Smith Arrillaga explained. “At a moment where the work they’re doing in communities is needed now more than ever, a lot of organizations talked about either their work or their funding being ‘under attack.'”
The report also found nonprofits face staffing challenges. Two-thirds of those surveyed said it is difficult to fill vacant jobs, while more than half do not have enough funding to retain and support their current staff.
Federal funding cuts are forcing nonprofits to consider cutting community services.
Cresha Reid, president and CEO of the South Florida Institute on Aging, noted until recently, the funding effects had been indirect but with the Department of Government Efficiency trying to eliminate AmeriCorps, Reid’s organization could lose 70% of its funding. She said the group is implementing a contingency plan before cutting services.
“The plan is to look at the other funding sources we have, to see how we could leverage those funds to continue to provide services in the meantime,” Reid outlined. “Also working with community partners to collaborate, to make sure these services don’t cease, and reaching out to other funders that are also looking at ways that they can step up to support us.”
Other nonprofits are fighting back.
Greg Croteau, CEO of UTEC, a public safety and violence intervention organization in Lowell, Massachusetts, said the Department of Justice cancelled $2 million in grants for the group. It is appealing the decision and is part of a class action lawsuit to get funding restored. Croteau pointed out rolling it back demonstrates what is important to the Department of Justice.
“When you cut only this piece, it’s sending the message that community violence intervention work is not as essential as the other components,” Croteau asserted. “I think the data is very clear in saying you need all of that. You need the law enforcement, you need the prevention and you need the intervention component.”
Edwin is a reporter and producer in North Tonawanda, New York. He’s previously reported for the Niagara Gazette and the Ithaca Times. Edwin got an early start in radio interning for WBFO-88.7FM, NPR’s Buffalo affiliate. In 2018, he graduated from SUNY Buffalo State College with a B.A. in Journalism, and in 2022, graduated from Syracuse University with an M.S. in Communications.