Press release via the Center for Effective Philanthropy
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 These actions and policies have included halting all federal funding in a now-rescinded order in late January, attacks on diversity, equity, and inclusion (DEI) via executive orders, and stated policy that suggests that “many” nonprofits “are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 ("Challenging Times: How U.S. Nonprofit Leaders Are Experiencing the Political Context"), 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.
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ABOUT THE AUTHORS:
Ellie Buteau, Ph.D., Director of Research Projects and Special Advisor on Research Methodology and Analysis, manages research projects and supports research design and analysis training and work across CEP’s teams. Ellie is managing CEP’s Big Gifts study, a three-year research project designed to understand how nonprofit organizations are using large, unrestricted gifts and what the impact of those gifts has been. She is a leading authority on foundation strategy, foundation performance assessment, and foundation-grantee relationships, as well as an expert in research design and statistical analysis. She has authored or co-authored numerous reports, articles, opinion pieces, and blog posts on issues related to foundation effectiveness, including Foundations Respond to Crisis: Lasting Change, Persevering Through Crisis: The State of Nonprofits, and Crucial Donors: How Major Individual Givers Can Best Support Nonprofits.
Ellie is also a Certified Professional Coach (CPC). She has coached professionals in the United States, Canada, China, and India. She is a graduate of the International Coach Academy and credentialed by the International Coach Federation as an Associate Certified Coach. Ellie volunteers with The Women’s Impact Alliance, a nonprofit that provides coaching to young women leaders of high potential impact.
Before joining CEP in 2004, Ellie led the design and analysis of education and health-related research projects at Cornell University, Tufts University, and a variety of nonprofit organizations. She taught courses on statistics at Tufts University and published research in a number of journals. She received a PhD in Social-Personality Psychology from City University of New York Graduate Center and a BA in Psychology, awarded with Great Distinction, from McGill University in Montreal.
Elisha Smith Arrillaga, Ph.D., Vice President, Research, manages CEP’s Research team, leading the creation, development, analysis, and release of various research projects and initiatives relevant to the philanthropic sector’s most pressing issues.
Before joining CEP in 2023, Elisha was a faculty fellow and professor of practice in philanthropy and education policy at the University of Texas, and she was the founder and CEO of Student Success Solutions, an education consulting firm that partners with philanthropies, nonprofits, and government to analyze, design, and execute equity-focused student success strategies. She previously held the role of managing director of the Dana Center at the University of Texas and executive director of Education Trust West. Earlier in her career, Elisha served as director in the Career Ladders Project at the Foundation for California Community Colleges, the first fellow at the William and Flora Hewlett Foundation, and a director at Mathematica Policy Research.
Elisha has additionally served on a range of state and national advisory groups including Google’s Equitable Artificial Intelligence Research Roundtable, the advisory board of the American Mathematics Education Study, and the national advisory board at Just Equations, where she is also a research fellow. She has spoken widely at conferences such as South by Southwest, has published articles and op-eds on educational inequities, and has been interviewed by various media outlets, including CNN.
Emily Yang, Senior Analyst, Research supports the research team at CEP in designing studies, analyzing quantitative and qualitative data, and writing reports.
Prior to joining CEP in March 2022, Emily conducted academic research in nutrition policy and social services. During her fellowship at GlobalGiving, she evaluated programming and regulation compliance for international nonprofit organizations. Emily holds a Master’s of Science in Public Health from Johns Hopkins University and a Bachelor’s in Biology from Duke University. Outside of the office, Emily enjoys nature photography, karaoke with friends, and browsing bookstores.
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.