The nonprofit sector has long served as a safety net during challenging times, bolstering essential public services across health, education, and disaster relief. But today, nonprofit leaders are navigating an environment unlike anything they’ve faced before: shrinking funding, skyrocketing demand for services, rapid technological change, and widespread uncertainty.
To better understand the challenges and opportunities of this moment Taproot launched our Nonprofit Pulse Survey this spring. From April 2 to May 27, 2025, we received feedback from 175 nonprofit leaders and staff representing a wide range of nonprofit causes, budgets, and regions. The survey demonstrates what many in and around the nonprofit field have been feeling: nonprofits are under immense strain, working to meet growing demand despite shrinking resources and an uncertain future.
Unlike surveys conducted in prior years, the challenges that respondents reported are emerging faster, often unexpectedly, and are proving difficult for nonprofits to plan for or absorb. As nonprofits begin to adapt and respond, they are focusing on diversifying revenue streams, increasing pro bono and general volunteer support, and planning for longer-term resilience.
As an introduction to our 2025 Nonprofit Pulse Survey findings, key takeaways are presented below. Stay tuned for follow-up posts in coming weeks that will dive into these insights in greater depth.
Topline findings show a sector under pressure
Nonprofits are facing a one-two punch: increased demand for their services and dwindling resources. Respondents anticipate turning to volunteers and pro bono when possible, to fill the gap.
- 60% of nonprofit leaders surveyed reported a decrease in funding since the beginning of the year.
- 74% of nonprofit leaders surveyed reported an increase in demand for programs since the beginning of the year. This included 100% of respondents supporting workforce development, women’s rights, immigration, and diversity, equity, and inclusion.
- 69% of nonprofit leaders surveyed expect that their organization will increase volunteer involvement in the calendar year, particularly among smaller organizations. More specifically, 81% of respondents indicate their organization would be interested in receiving pro bono support from a skilled volunteer in the next 6-12 months.
The cultural and political climate is straining staff and missions
Nonprofit teams are feeling the weight of today’s political and economic turbulence, which is impacting both organizational missions and staff well-being.
- 75% of respondents agree or strongly agree that the current political and economic climate directly impacts their organization’s mission.
- 69% of respondents agree or strongly agree that the current political environment is taking a toll on their organization’s staff’s well-being.
- 78% of respondents agree or strongly agree that they are worried.
Funding and resource challenges are pushing nonprofits to the brink
Securing long-term funding has become one of the greatest challenges for nonprofits. Leaders are pivoting strategies and pursuing more sustainable funding sources to meet increasing demand.
- 86% of nonprofit leaders surveyed expect to see an increase in demand for programs in the calendar year.
- 80% of respondents agree or strongly agree that their organization is facing new challenges.
- 49% of nonprofit leaders surveyed expect to see a decrease in funding in the calendar year
- 42% of respondents say their biggest challenge is longer-term funding considerations
AI adoption is on the horizon but not yet a priority
Nonprofit leaders are open to adopting AI to strengthen their work, but significant barriers remain and many organizations are hesitant to invest resources right now.
- Only 9% of nonprofit leaders surveyed said they were reluctant (6%) or opposed (3%) to AI adoption.
- Just 50% of respondents said they are currently using AI tools. Frequently cited were AI tools that are relatively simple to deploy and use, such as tools for notetaking and meeting summaries.
- Barriers, according to respondents, include lack of staff training (26%), limited internal capacity (18%), and no clear use case yet (14%).
Meeting the moment: nonprofits and volunteers step up
Both nonprofits and individuals are taking steps to meet the moment, creating supply and demand for pro bono services. Taproot has mobilized as well, increasing capacity and fast-tracking new features for Taproot Plus, our online pro bono marketplace. From April to May of this year, we saw 2,000 new volunteers create new accounts, resulting in 1,861 hours of pro bono work (and over $400,000 in value)— which far exceeded the volunteer interest in previous years.
There‘s more to come from our 2025 Nonprofit Pulse Survey, but the message is clear: nonprofits urgently need support to withstand this moment and build towards a stronger future.
Whether you’re a nonprofit leader, a skilled volunteer, or a funder, join us in mobilizing the resources and expertise nonprofits need to thrive.
Download the key takeaways from Taproot’s Nonprofit Pulse Survey as a PDF.
