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Urgent Call for Support: Nonprofits at Risk

Recent research from Candid, a leading nonprofit data source, highlights a dire situation facing over 14,000 nonprofits in the United States. The analysis reveals that these organizations could soon exhaust their cash reserves—potentially within three months—if government grant funding were to cease. This alarming prospect threatens nearly 2.8 million jobs within the nonprofit sector. In New York alone, 1,366 nonprofits are at immediate risk, which translates to over 361,000 nonprofit jobs under threat.

The findings shed light on the nonprofit landscape and underscore the importance of government funding, particularly in critical sectors such as human services, education, housing, and the arts. "Government grants are a primary revenue source for many nonprofits," states Dr. Cathleen Clerkin, Associate Vice President of Research at Candid. "Over 35,000 nonprofits—approximately one-third—rely on these grants for more than half of their total revenue."

The report provides a comprehensive understanding of how quickly funding cuts can impact nonprofits and the communities they serve. Unlike many businesses that can pivot or alter their revenue models, nonprofits often have limited flexibility, especially those heavily reliant on government grants.

Amid this precarious situation, Candid is mobilizing resources to assist these organizations in identifying alternative funding streams. For a limited time, Candid is offering resources to help nonprofits that have lost federal support. This includes free access to the Foundation Directory Professional, a robust tool designed to help nonprofits discover and connect with more than 240,000 U.S. grantmakers. Smaller nonprofits with revenues below $10 million that have been affected by federal funding cuts can leverage this opportunity to seek new financial support.

Additionally, Candid will be hosting a free training session titled "Funding Beyond Federal: How to Diversify Funding to Ensure Stability in Uncertain Times" on May 12, 2025. This session aims to equip nonprofit leaders with practical strategies for sourcing alternative funding and enhancing organizational resilience. The free training will take a hands-on approach, guiding attendees through the process of exploring diverse funding options to fortify their operations against future uncertainties.

Candid has committed itself to the sustainability of the nonprofit sector during these challenging times. "When nonprofits struggle or shut down, entire communities are adversely affected. From veteran support services to youth programs and community centers, nonprofits deliver essential services that help foster vibrant communities," emphasizes Ann Mei Chang, CEO of Candid.

The organization has been proactive in addressing these issues, ensuring that nonprofits are not left unsupported amid the impending financial challenges. With a rich database and a deep understanding of the sector’s dynamics, Candid is positioned to provide the necessary guidance and resources that nonprofit leaders critically need right now.

For more information on how to access these resources, nonprofits can visit candid.org, where they can find valuable research, tools, and training opportunities tailored to their needs. Candid, a 501(c)(3) nonprofit organization, merged from GuideStar and Foundation Center in 2019, aims to provide the most comprehensive insights into the social sector, ensuring that every dollar counts and reaches the right causes.

As the landscape of nonprofit funding continues to evolve, Candid remains a beacon of hope, illustrating the importance of adaptability and innovation in securing the necessary financial support for crucial community services. Through focused efforts and the provision of crucial resources, Candid is determined to help nonprofits navigate through this uncertain terrain and emerge resilient and sustainable.