Nonprofit organizations touch so many sectors – from arts to science to international affairs. A significant number of nonprofits are mission-focused on the humanities, serving the needs of their local community including public health, after-school/summer programs, shelters, and food pantries. About 1.3 million charitable nonprofits employ more than 12 million people across the U.S, accounting for about 10% of the national workforce. From educational institutions to hospitals to community theaters, these501(c)3/4 organizations have touched all of our lives in some form or fashion.

How do non-profits operate? A majority of non-profit resources are earned through private fees for services (49%)and government grants/contracts (~32%). Private philanthropy (donations, bequests, grants) adds up to about 14% of nonprofit revenue, with individual donations topping the leader board. With tight budgets, a perpetual workforce shortage (~75% of nonprofits surveyed reported job vacancies), and a rising demand for services, nonprofits need sustained resources so they can stay focused on their mission to educate, entertain, and help our communities.  

However, the recent federal funding freeze has created significant turbulence in the nonprofit sector and further strained nonprofit resources. For nonprofits with diverse funding streams, it may have meant cutting back on programs, operational restrictions, or reallocating resources. However, organizations that were heavily dependent on government funding or contracts would have made tougher decisions.

The coming weeks and months will tell us how nonprofits and their stakeholders pulled through the turbulent times. In the interim, here are some tips offered by The Kresge Foundation on how nonprofits can strengthen their financial resilience.

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