“With funding freezes, the most vulnerable are impacted. We provide vital assistance to people in need of life-saving healthcare, and we’ve seen an increase in the number of people who do not have anywhere else to turn for resources beyond us.”
Nonprofit Leader
“The political divisiveness is always a detriment to the work of child abuse prevention in America. Child abuse prevention requires bi-partisan support to collectively prioritize child and family wellbeing, including resource allocations and policy priorities that reflect that bipartisan support.”
Nonprofit Leader
“Federal freezes in grants and potentially stopping social services block grants will definitely hurt the programs at the senior center. We would have to serve a lot less home delivered meals.”
Nonprofit Leader
“It would be most helpful if philanthropy could prioritize listening to community leaders who work on the ground, with the most affected people (immigrants, LGBTQ people, Black Americans, etc). The goal of the listening would be to figure out how to line up their funding in support of the concerns and priorities of those community members (as opposed to creating large top-down funding initiatives).”
Nonprofit Leader
Since late January, the new administration has targeted significant portions of the nonprofit sector, including via a now-rescinded order halting all federal funding, attacks on diversity, equity, and inclusion (DEI) via executive orders, and stated policy that suggests that “many” nonprofits “are engaged in actions that actively undermine the security, prosperity, and safety of the American people.”
To understand how these policies and pronouncements from the new administration were affecting nonprofits and, importantly, what they say they need from their funders in this moment of extraordinary challenge, the Center for Effective Philanthropy (CEP) fielded a survey in the first three weeks of February 2025, gathering and analyzing responses from 585 leaders of nonprofit organizations across the country (see more about our survey sample here).
Here’s some of what we learned from that data — for a complete picture, read the full Research Snapshot.
‘Treat This Situation Like the Emergency It Is’
Most nonprofit leaders – 85 percent – have concerns about the ways in which the current political climate is negatively affecting their organization’s work, and 94 percent believe the climate is very likely to negatively affect their organization’s work in the future.
Nonprofit leaders explain that not only are executive orders and the freeze in federal funding hampering efforts to get their daily work done, but those in desperate need of nonprofits’ services are bearing the brunt of these sudden roadblocks. As one leader says, “The climate around immigration makes it more dangerous for many of our undocumented families to seek medical help. Delays in seeking treatment may be fatal.” Another says, “Domestic violence shelters and rape crisis centers were specifically named in one of the executive orders. These are two issues that the federal administration is specifically addressing — to the detriment of victims.”
Many leaders anticipate more difficult days ahead. One leader seeking greater urgency in response from their foundation funders says:
“We don’t have time to write custom proposals and reports right now, and we will have even less if we lose federal funding and have to downsize. Treat this situation like the emergency it is for all the people who are about to lose even more of their ability to meet their basic needs, and the organizations that serve them, and the organizations that are working to mitigate the policy harm.”
What Nonprofits Say They Need From Their Funders
Nonprofit leaders are most concerned about decreases in, and uncertainty about, funding for their organizations. They also report a high level of concern about the changing priorities of government and private funders. The well-being and safety of those their organization seeks to help as well as that of their own staff members remain top of mind for many nonprofit leaders, too, during these rapidly changing times.
More than three quarters of nonprofit leaders indicate they would like to receive communications about the implications of the political climate from their foundation funders. One nonprofit leader says, “Communication and transparency would be the biggest gifts foundation funders could give to nonprofits during this time of uncertainty.”
Nonprofit leaders are seeking larger grants and more unrestricted funding to continue to provide much-needed programs and services. One nonprofit leader notes it would be helpful if foundations could provide unrestricted funding to help bridge the funding gaps their organization is experiencing, saying, “Helping cover critical operational costs, such as staff salaries, professional development, and program sustainability, would ensure we can continue delivering impact despite fluctuations in public funding.” Another says, “The uncertainty around federal funding and payments is close to crippling. I’m concerned there will be deep cuts in future funding.”
Staying the Course
Beyond specific funding requests or determining how to respond to the latest order from the administration, nonprofit leaders are asking their foundation funders to stand up and step in — to use their power to help the sector survive and thrive:
“Be ready to hold the line with us and provide information and support to help us support our mission and the vulnerable populations we serve. We need the people who support us financially to make it clear they have our back even in a turbulent political climate.”
Nonprofit Leader
“Advocate politically and be fearless in the face of government oppression and intimidation (i.e., continue to publicly fund [d]iversity and [e]quity, gender-rights, [and] promote safe spaces).”
Nonprofit Leader
“Be brave. Surely, foundations in their positional power and positional influence and positional privilege can make their power work for those stripped of power and voice. There is no greater investment because when we center those most impacted by oppression — in any category — healthcare, housing, education, food security, employment, etc. — everyone benefits in a region and a region can thrive.”
Nonprofit Leader
“Reassure us that they understand that we are on the verge of a very serious precipice in the United States. Our democracy is on the line, and this is no time to sit on the sidelines.”
Nonprofit Leader
Ellie Buteau is director of research projects and special advisor on research methodology and analysis on the Research team at CEP. Find her on LinkedIn.
