CAMBRIDGE, Mass., May 12, 2026 /PRNewswire/ -- A new study released today by The Center for Effective Philanthropy (CEP) reveals that nonprofit leaders report unprecedented challenges since January 2025, when the Trump administration began a series of actions targeting nonprofits. Those actions include the federal funding freeze in early 2025, DOGE's review and termination of grants, executive orders targeting specific causes, federal investigations of nonprofits, congressional hearings, and threats to revoke their tax-exempt status, among others.

The study found a dramatic increase in burnout, an atmosphere of fear, stress, and low morale, increasing signs of financial distress, more difficulty raising funds from both government and foundations, and, in some cases, difficult decisions to make cutbacks to programs and staff. Most leaders indicate that the current context poses a significant threat to their organization's continued existence and ability to provide essential programs and services.

The pressures are mounting at a time when 73% of nonprofits surveyed report increased demand for their services, creating an existential crisis for nonprofits with massive implications for communities that depend on them.

"One year into the Trump administration's campaign against nonprofits, these organizations are facing enormous and unprecedented pressures," said CEP Vice President and report co-author Elisha Smith Arrillaga, PhD. "This isn't happening at the margins — it's happening in cities and towns across the country, to the organizations people rely on when they have nowhere else to turn."

The study, "State of Nonprofits 2026: What Funders Need To Know," is based on survey responses from 380 nonprofit leaders participating in CEP's Nonprofit Voice Project, a nationally representative panel of U.S.-based nonprofits that receive at least some foundation funding.

"The current crisis facing nonprofits is unlike anything I have seen in my 25 years working in philanthropy," said Phil Buchanan, president of CEP and author of Giving Done Right. "Nonprofits are reeling, and I hope more foundation leaders and individual donors at all levels seriously consider giving at a significantly higher than typical rate. The time to act is now."

The Center for Effective Philanthropy provides data, feedback, programs, and insights to help individual and institutional donors improve their effectiveness. We do this work because we believe effective donors, working collaboratively and thoughtfully, can profoundly contribute to creating a better and more just world.

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SOURCE Center For Effective Philanthropy