Study: Almost Half of Nonprofits Lack Sufficient Funds to Deliver Their Programs and Services
Forvis Mazars, LLP, a large public accounting and consulting firm in the United States, published its annual national nonprofit study, revealing that 47% of nonprofits do not have the adequate funds to execute their programs and services in 2025. As a result, this lack of funding has driven anxiety within the overall industry, with 50% of respondents expressing concern about their current financial situation, up from 38% last year.
Furthermore, for the second consecutive year, individual contributions—the single largest source of dollars given to charitable organizations for more than 10 years—have declined. Thanks to a strong economic market in 2024, however, 56% of organizations reported a net increase in income.
“While a resilient 2024 economy strengthened the financial position of some nonprofits, rising costs and the expiration of pandemic-era funding have fueled uncertainty,” said Dan Prater, senior managing consultant with Forvis Mazars and author of the report. “Nearly half of nonprofits are increasingly concerned about their financial future.”
These findings are among many in the 2025 State of the Nonprofit Sector Report released by Forvis Mazars. The annual report benchmarks the responses of 230 nonprofit professionals from various organization sizes and types across the country, from small startups and midsize groups to large educational and health institutions.
Prater continued, “The transition of younger staff into leadership positions as well as recruiting for higher-level roles remains a struggle. Roughly 77% of nonprofits reported that they are finding it difficult to recruit senior leadership, while two-thirds of respondents revealed they do not have a leadership training or mentorship program currently implemented.”
Other key findings include:
- 65% of nonprofits are hampered by staffing shortages.
- Three out of four nonprofits reported staff elimination and reduced programs and services.
- 77% of nonprofits report that they had an increase in demand for their programs and services.
- 87% of nonprofits saw an increase in requests for mental health programs and services.
“With ongoing uncertainty, nonprofits are finding creative ways to manage rising operational costs while staying true to their missions. Many are strategically reducing travel, outsourcing professional services, and leveraging the talents of interns and volunteers to maximize resources. Beyond immediate benefits, these efforts also play a crucial role in cultivating future leaders and dedicated supporters, who often become long-term contributors,” concluded Prater.
The report is based on an electronic survey as well as individual interviews that included questions about organization size, function, and stability. Conducted in late 2024, the survey was open for one month to tax-exempt organizations of all sizes across the nation. Participation in the survey was entirely voluntary and responses remained anonymous.
Forvis Mazars serves nonprofit clients of varying sizes across the country, including foundations, museums, social services agencies, and more. Download the "2025 State of the Nonprofit Sector Report" here.
The preceding press release was provided by a company unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of the staff of NonProfit PRO.
