A defining moment for nonprofits: Uniting in the face of funding cuts

The nonprofit sector in the United States is at a critical crossroads. Following recent cuts in financial support from the U.S. administration, nonprofits face increased pressure to sustain their missions with fewer resources. This shift threatens the ability of organisations to address economic equality, justice and strong institutions, and sustainability. Now, more than ever, nonprofits must unite and join forces, leveraging collective strength to overcome financial constraints and continue driving positive change. The National Council of Nonprofits (NCN) plays a crucial role in ensuring these organisations remain resilient, equipped with the resources, knowledge, and advocacy necessary to thrive.

Lessons from history: Resilience in challenging times

This is not the first time the nonprofit sector has faced economic uncertainty. History provides numerous examples of how nonprofits have adapted and persevered through financial downturns, policy shifts, and social change. During the Great Depression of the 1930s, nonprofits played a crucial role in providing relief services, filling gaps where government assistance fell short. Community organisations stepped up to support those affected by widespread unemployment, demonstrating the sector’s ability to mobilise resources and provide critical aid even in times of economic distress.

Similarly, the 2008 financial crisis forced many nonprofits to reevaluate their funding models. A decline in donations and government support put immense strain on operations, but organisations that embraced collaboration, diversified their funding sources, and strengthened advocacy efforts managed to not only survive but expand their impact. The response to the crisis reinforced the importance of financial sustainability, operational efficiency, and collective action within the sector.

The COVID-19 pandemic presented another major challenge, with nonprofits at the forefront of emergency response efforts. Despite declining revenues and increased demand for services, many organisations successfully adapted by leveraging digital tools, forming strategic partnerships, and engaging in policy advocacy to secure critical funding. These moments in history underscore a fundamental truth: when nonprofits come together, they emerge stronger and more capable of driving long-term change.

A sector-wide network driving social change

The NCN has been at the forefront of nonprofit advocacy for over 30 years, mobilising the nation’s largest nonprofit network to drive transformative outcomes. The U.S. is home to 1.3 million charitable nonprofits, collectively employing more than 10% of the private workforce a larger share than manufacturing, construction, or finance. These organisations provide essential services, from education and healthcare to environmental protection, reinforcing the resilience of communities.

However, sustaining nonprofit operations is no small task. Over 92% of nonprofits operate on budgets below $1 million annually, while 88% spend less than $500,000. Limited funding, coupled with increasing demand for services, underscores the need for policy support and sustainable revenue models. Yet, only 3% of nonprofits engage in lobbying, despite their legal right to advocate for their causes.

The NCN’s approach is built on three pillars: championing, informing, and connecting. By embedding principles of diversity, equity, and inclusion into its policies and leadership, the council fosters a more civil and just society. Its work ensures a connected nonprofit community that is better equipped to tackle global challenges such as economic inequality, environmental sustainability, and access to justice.

The path forward: Supporting nonprofits for a sustainable future

A thriving nonprofit sector is crucial for achieving the global goals. To ensure continued success, policies must evolve to provide more equitable funding, streamline regulatory frameworks, and support grassroots advocacy. Encouraging greater participation in public policy will enable nonprofits to shape legislative agendas that align with their missions.

Now is the time for nonprofits to stand together, to advocate for the funding and policies they need, and to strengthen partnerships that will carry them into the future. The challenges ahead may be significant, but history has shown that unity and innovation can drive lasting progress. Nonprofits have weathered economic crises before, emerging stronger and more capable of fulfilling their missions. By embracing collaboration, diversifying resources, and leveraging policy advocacy, the sector can continue to serve communities effectively and contribute to a more just and sustainable world.

For those invested in fostering a stronger, more just global society, supporting nonprofits is a strategic and ethical imperative. By amplifying their impact, we move closer to a world where economic opportunity, environmental protection, and social justice are within reach for all.

To learn more about how nonprofits are shaping the world and how you can support their work, visit the National Council of Nonprofits’ official platform for research, advocacy, and resources.