Squeezed: Pressure in 2025 for Nonprofits (1 of 3)

Squeezed from All Sides: Why 2025 Is a Pivotal Year for Nonprofits (NP2025 1 of 3)

Nonprofits are facing a perfect storm in 2025. Federal and state funding are under pressure, individual donations are softening, volunteers are harder to find, and staffing shortages are widespread. The economic outlook remains uncertain, and political shifts—especially at the federal level—are introducing new challenges for organizations that provide critical services.

According to the latest reports, the number of individual donors has declined for the fourth consecutive year, while inflation and rising operational costs continue to squeeze nonprofit budgets. State governments are delaying payments for contracted services, as seen in New York, where nonprofits are owed over $650 million. Meanwhile, the Trump administration and GOP-led budget proposals threaten to slash Medicaid and social service funding, pushing even more demand onto local charities and nonprofit networks.

Volunteering is also down, adding to the strain. While virtual and skills-based volunteering have seen some growth, the overall number of hours donated has dropped. On the workforce side, three-quarters of nonprofits report difficulty filling critical positions, and many can’t offer wages competitive with the private sector.

This triple squeeze—less funding, fewer volunteers, and rising demand—is forcing nonprofits to rethink how they operate and fundraise. In the following articles, we’ll explore the financial and human resource pressures in more detail, and share some proactive strategies for navigating the road ahead.

Sources / Links

1. Donors Down, Dollars Flat – Chronicle of Philanthropy: https://www.philanthropy.com/article/donors-down-dollars-flat-trends-in-2024-set-stage-for-2025
2. 2025 Trends in Philanthropy – Johnson Center: https://johnsoncenter.org/blog/11-trends-in-philanthropy-for-2025
3. Federal Layoffs Impacting Nonprofits – Wikipedia Summary: https://en.wikipedia.org/wiki/2025_United_States_federal_mass_layoffs
4. NY Nonprofits Owed $650M – Times Union: https://www.timesunion.com/capitol/article/ny-nonprofits-funding-concerns-slow-state-payments-20338746.php

GenAI Prompts

• “Summarize key economic and political risks for nonprofits in 2025.”
• “What strategies can small nonprofits use to adapt to shrinking government funding?”
• “Create a risk map for a nonprofit facing reduced donations, volunteer shortages, and service demand spikes.”
• “List high-impact, low-cost ways a nonprofit can build resilience during an economic downturn.”

#NonprofitPlan #PerpetualInnovation #NonprofitTrends #NonprofitChallenges #CharitableGiving #MedicaidCuts #FederalFunding #VolunteerCrisis #SocialImpact #MissionDriven #CivicEngagement #NonprofitLeadership