The Center for Effective Philanthropy's latest report highlights significant challenges facing nonprofits in 2025, as outlined by insights from 585 leaders in the sector. It reveals that while many nonprofits maintained balanced budgets, concerns about future funding loom large. The political climate and staffing shortages continue to exacerbate risks of burnout among nonprofit leaders and their teams. This underscores the delicate balance nonprofits must strike between pursuing their missions and managing external pressures, particularly in light of the aftermath of the 2024 election and shifting federal policies.
As the pandemic waned, we anticipated returning to some form of 'new normal,' but instead, we've faced more uncertainty, especially regarding funding and support.
The increasing political challenges are forcing nonprofit leaders to rethink strategies, often diverting their focus from their core missions to navigating external pressures.
Amidst financial achievements, nonprofits are increasingly worried about future funding and rising operational costs, which threaten their sustainability and mission fulfillment.
The report emphasizes that nonprofit leaders prioritize staff well-being, acknowledging a direct correlation between their burnout and the overall effectiveness of their organizations.
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