Nonprofits across New York State are raising urgent concerns about the worsening political and economic environment, citing increased instability, reduced funding, and growing staff burnout as significant threats to their ability to serve communities. According to a newly released report, the 2025 State of Nonprofits survey reveals a sector stretched thin and deeply uneasy about the future.
The report, published by the Center for Effective Philanthropy, found that a majority of U.S. nonprofit leaders are struggling to maintain operations under mounting pressure. In New York, where nonprofits play a crucial role in delivering housing, mental health, education, and food assistance programs, leaders say the stakes could not be higher.
Elisha Smith Arrillaga, Vice President of Research at the Center, said nonprofit staff are under extreme stress, facing not just financial uncertainty but also fear for their personal safety in an increasingly polarized climate. “Their staff are concerned about their own personal safety,” she said, highlighting a shift in nonprofit concerns from purely operational challenges to more deeply rooted structural and emotional ones.
The report shows that nearly two-thirds of nonprofit organizations are having difficulty filling open positions, while more than half lack sufficient funding to retain their current workforce. These workforce issues are exacerbated by cuts in federal grants, forcing some nonprofits to scale back or entirely halt key programs.
One example comes from the South Florida Institute on Aging, where CEO Cresha Reid said the potential elimination of AmeriCorps funding could wipe out up to 70% of the organization’s budget. “We’re looking for additional funding sources, contingency planning, and leaning heavily on our community partners,” she said, describing a scramble to keep services running despite looming budget shortfalls.
In Massachusetts, UTEC, a nonprofit focused on violence intervention, lost a $2 million grant from the U.S. Department of Justice. The organization is currently appealing the decision and joining a class-action lawsuit, warning that such funding cuts undermine critical efforts to prevent youth violence. UTEC leadership stressed that prorating federal grants mid-cycle sends a dangerous message that violence intervention is no longer a national priority.
New York nonprofits have been especially hard hit. An earlier report released in April warned that job losses and contract delays were already weakening the sector. Leaders fear that if government funding continues to fluctuate or fall victim to political gridlock, many nonprofits may be forced to downsize or shut down altogether.
As service demand continues to rise amid inflation and economic pressure, nonprofit leaders are urging state and federal officials to protect funding streams and depoliticize community work. Many warn that if support does not stabilize soon, communities relying on food, shelter, healthcare, and education services will be left with fewer options—and more hardship.
While the sector is actively pursuing new strategies, such as diversifying funding and strengthening partnerships, many remain concerned that without systemic support, even the most resilient organizations may not withstand the storm.
“Nonprofits are built to serve,” said Arrillaga. “But they can’t do it alone—not in this climate.”
