CAMBRIDGE, Mass., March 5, 2025 -- In a new report from the Center for Effective Philanthropy (CEP), 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.
The overwhelming majority of nonprofit leaders report that the political climate is creating challenges for their work.
Since late January, the new Trump 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 These actions and policies have included halting all federal funding in a now-rescinded order in late January, attacks on diversity, equity, and inclusion via executive orders, and stated policy that suggests that "many" nonprofits "are engaged in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 CEP surveyed 585 nonprofit leaders from February 3 to 21.
The study, 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 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.
Read the study at cep.org.
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