Nonprofit Insights

Nonprofit leaders across the country are facing a stark reality: government funding. Once seen as a reliable backbone, there is growing uncertainty. A recent Nonprofit Finance Fund (NFF) survey reveals that 84% of nonprofits receiving government funding expected cuts, while 85% saw demand for their services rising, and a concerning 36% ended the year with an operating deficit. Urban Institute estimates that 60–80% of government-dependent nonprofits would suffer shortfalls without that support. Organizations built on public funding are highly vulnerable to sudden policy shifts. With budgets already stretched thin, nonprofits are scrambling to adapt or face closure. Leaders must act now to diversify funding, strengthen reserves, and engage in scenario planning. Cloud 9 can help. In the meantime, we encourage you to stay abreast of these changes.

A recent study by Project Evident reveals that many major foundations, including tech-savvy ones like the Gates Foundation and the Chan Zuckerberg Initiative, face challenges in evaluating and funding artificial intelligence (AI) projects. The survey found that only 36% of program officers feel confident assessing the technical feasibility of AI proposals, highlighting a significant gap in expertise. This uncertainty may hinder the adoption of AI innovations within the nonprofit sector. To address this issue, foundations are encouraged to enhance their internal AI capabilities and collaborate closely with grantees to navigate the complexities of AI implementation effectively.

Corporations like Sam's Club are investing in workforce training programs through nonprofit partnerships. A recent $3 million donation aims to support career training for young individuals not currently in school or working, addressing labor shortages.

The 2024 Giving USA report is here—and for the first time in years, there’s good news. Charitable giving in the U.S. grew 6.3% in current dollars and outpaced inflation by 3.3%, reaching an estimated $592.5 billion. This year’s report also highlights clear, actionable steps nonprofits can take to strengthen donor relationships, innovate fundraising strategies, and build resilience for whatever comes next.

In today’s nonprofit landscape, leaders often feel pressure to grow programming quickly to meet urgent needs. But without investing in internal infrastructure—like staff development, technology systems, and governance—organizations risk burnout and inefficiency. Building capacity isn't overhead; it’s the backbone of long-term impact. Prioritize strengthening your organization from the inside out so you're equipped to serve sustainably, even in times of uncertainty.