06/25/2025

Nonprofits are Facing Stronger Headwinds

They're challenged with staff burnout, inflation and uncertain funding

The broader nonprofit sector is struggling to make ends meet financially due to inflation costs, shifts in government support and other pressures, according to a new report.

The National State of the Nonprofit Sector Survey, released last week by the National Nonprofit Fund (NNF), is based on a survey for more than 2,000 U.S. nonprofits, mostly charitable and philanthropic groups. Though most such groups operate under a model distinct from nonprofit membership and trade associations, the shifts reveal implications for the association sector and its affiliated charitable foundations.

According to the report, in the past year the nonprofits surveyed have been facing three acute challenges. One is ongoing inflation: 86 percent of respondents said they are facing rising costs. Second is government funding: 84 percent of respondents said they expected to have to make cuts due to shifts in federal grants and other financial support. Third is an increased demand for services, with 85 percent of respondents saying they expect to need to serve more people in the coming year.

Please select this link to read the complete article from Associations Now.