The overwhelming majority of nonprofit leaders report that the current political climate is creating challenges, or will create challenges, for their organizations.
CAMBRIDGE, Mass., March 5 – Nonprofit organizations report difficulty carrying out their mission-focused work as the overwhelming majority say they are experiencing a negative impact from the current U.S. political climate.
Since late January, the new administration has targeted significant portions of the nonprofit sector. These actions and policies have included halting all federal funding in a now-rescinded order in late January, attacks on diversity, equity, and inclusion (DEI) via executive orders, and stated policy that suggests that “many” nonprofits “are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.” Although the attempted funding freeze has been halted by the courts for now, a number of nonprofits have not been able to access their funding and face considerable financial uncertainty.
To understand how nonprofits are experiencing these rapid shifts in policy and the current political climate, the Center for Effective Philanthropy (CEP) surveyed 585 nonprofit leaders from February 3 to 21.
The study, which includes a nationally representative sample from CEP’s Nonprofit Voice Project, found that:
- 85% of nonprofit leaders cited ways in which the political climate is already negatively affecting their organization’s work, and 94% believe it is very likely to negatively affect their work in the future.
- Leaders most frequently cite the outcome of the 2024 U.S. federal elections and the current administration’s changes in federal government funding as drivers of negative impact.
- More than 60% also expect that shifts in state and local funding, often a trickle down effect of cuts at the federal level, will create challenges when it comes to their ability to carry out their organization’s missions.
- About half also cite political divisions within the U.S. as a key challenge impacting their work.
Leaders noted the impact of uncertainty created by the current administration’s policies, with one noting, “I can see nothing but turbulence and chaos ahead given this political climate.”
“Nonprofits are doing amazing work in communities across the country and this data makes clear that the current political environment is making their already difficult jobs harder,” said CEP’s Vice President, Research Elisha Smith Arrillaga, Ph.D.. “If we want these vital organizations to continue to serve our communities in the way that they do – providing shelter, food, childcare, elder care and filling in so many of the gaps in all of our lives that no other services can – then we need to support their work.”
Among the most pressing concerns that nonprofits note are decreases in and uncertainty about funding. 65% of nonprofits note this concern, and more than half also note they are concerned about their funders’, both government and private, changing priorities.
Nearly half of nonprofits – 40% – also note concern about the well-being and safety of staff or those the organization serves.
“In this challenging context, it’s crucial that the individual and institutional donors communicate their support to the organizations they care about – and provide as much support as they can,” said CEP President Phil Buchanan.
Most nonprofit leaders surveyed report that they had not, at the time of the survey, received communication from their foundation funders, or that only a few of their funders had communicated with them about current challenges. The majority, however – 77% – indicated that they would like to see more communication from funders about the implications of the political context. In their comments, many noted they would like to understand how their funders are feeling, that they want their funders to understand “how our clients are being affected,” and that they want funders to be consistent and committed, and to “communicate that commitment.”
The data in this study is indicative of the anxiety, challenge, and uncertainty that nonprofit leaders are facing in light of the new administration’s policies and orders attacking nonprofits. It should be noted that the data represents a snapshot in time as survey data was collected from February 3-21. CEP will continue to monitor the impacts of the shifting political context on nonprofits in the coming months.
ABOUT CEP
The Center for Effective Philanthropy (CEP) is a nonprofit organization with a mission to provide data, feedback, programs, and insights to help individual and institutional donors improve their effectiveness. We do this work because we believe effective donors, working collaboratively and thoughtfully, can profoundly contribute to creating a better and more just world. For more information on CEP’s work, including its research, assessments, advisory services, and programming, visit www.cep.org.
MEDIA CONTACT: Chloe Heskett, Center for Effective Philanthropy: chloeh@cep.org | (617) 395-4092
