Nonprofits Face Mounting Pressure, and They're Adapting

Key Findings from AAN's Annual Member Survey

This year, 100 of AAN's 575 member organizations responded to our annual member survey, a response rate of about 17%, and about 45 members affirmed these responses during our two listening sessions. Their answers show that the nonprofit environment remains challenging. Among respondents affected by the current political and funding climate:

• 70% reported more competition for philanthropic and foundation funding
• 46% reported more demand for services
• 39% reported staff capacity strain or leadership fatigue
• 37% reported donor hesitancy or reduced giving
• 31% reported a loss or reduction of federal funding
• 20% reported policy or regulatory challenges
• 19% reported a loss or reduction of state funding
  
  

Funding uncertainty dominates. Financial pressure was the strongest theme throughout the survey. Members described:

• Less federal support reaching them through partner institutions
• Fiercer competition for foundation and philanthropic dollars
• Trouble finding new funding sources
• Difficulty securing unrestricted operating funds
• Rising costs driven by inflation and tariffs
• Pressure to raise salaries while reimbursement rates stay flat

Demand is growing while capacity is stretched. Many respondents are serving more people with limited resources. They pointed to rising community needs, clients hurt by cuts to public support systems, staff burnout and leadership fatigue, trouble attracting and keeping employees, and growing workloads with too few staff.

Members are responding proactively. Our members are not standing still. To meet these challenges, they are:

• Diversifying funding sources (78%)
• Forming or deepening partnerships (59%)
• Building financial reserves (37%)
• Increasing advocacy engagement (36%)
• Changing programs to meet shifting needs (32%)

What members need most from AAN. Members told us clearly where AAN can help most:

1. Funding and sustainability: access to grants and funding opportunities, fundraising and donor development training, strategies for corporate gifts, major gifts and capital campaigns, and help with financial planning, reserves and revenue diversification
2. Networking and collaboration: peer learning and relationship building, affinity groups and role-based networking, and statewide partnerships and convenings for specific parts of the sector
3. Advocacy and public policy: strong state and federal nonprofit advocacy, timely policy and regulatory updates, and a coordinated voice to educate policymakers and advance nonprofit priorities
4. Leadership and organizational capacity: board development and governance, executive transition and succession planning, and staff leadership development

AAN will use these findings to shape our programs, advocacy, and resources in the coming year. Thank you to every member who took the time to share their experience.