National nonprofit survey finds widespread financial strain and staffing reductions amid rising demand
U.S. nonprofit organizations are reporting broad financial and staffing pressure as they continue operating amid rising community need, according to a 2026 Center for Effective Philanthropy survey of 380 nonprofit leaders.
Nearly 90% of respondents expressed concern about burnout, while 66% reported concern about their organization’s financial stability. Thirty percent said their organizations had reduced staff size.
The findings offer a national snapshot of the organizations that provide community services, but they do not establish that every nonprofit or every community is experiencing the same conditions.
Burnout and financial stability concerns
The survey was conducted through the Center for Effective Philanthropy’s Nonprofit Voice Project. Its report, State of Nonprofits 2026, was published May 1, 2026, and describes its sample as broadly representative of U.S.-based nonprofits.
The results point to two connected pressures: leaders’ concerns about whether their organizations can remain financially stable and the strain facing the people responsible for maintaining operations. Nearly nine in 10 respondents reported burnout concerns, making it the most widespread concern identified in the survey. Two-thirds reported concerns about financial stability.
The survey also found that nonprofits were struggling to secure funding from government and foundation sources. That finding describes the organizations’ reported operating environment; the packet does not provide a specific dollar amount for any decline in nonprofit funding.
Staff reductions amid rising need
Three in 10 respondents said their organizations had reduced staff size. The result indicates that some nonprofits have responded to pressure by operating with smaller staffs, although the survey does not show that every organization made reductions or identify the number of positions eliminated.
The report also found that community need was rising. The National Council of Nonprofits, which summarized the Center for Effective Philanthropy survey in a June 1, 2026, release, described the findings as documenting “unprecedented challenges” for nonprofits since January 2025.
Taken together, the findings describe a sector being relied on for community services while leaders report difficulty sustaining finances and staffing. The practical effect will vary by organization and by the type of service it provides. The survey does not measure service reductions across all nonprofits, nor does it establish that demand increased in every community.
What the survey does and does not measure
The survey relies on responses from nonprofit leaders rather than a government administrative dataset. The approved materials do not identify the exact field dates or the survey response rate, which limits how precisely the results can be compared with other periods.
A separate Urban Institute nonprofit data tool says its National Survey of Nonprofit Trends and Impacts excludes churches, hospitals, higher-education institutions and other organizations with unique business models. The approved materials do not establish whether those categories are included in the Center for Effective Philanthropy survey. The findings therefore should not be presented as a measure of conditions across churches, hospitals or universities.
The survey also does not show that all nonprofit subsectors faced identical conditions. Its value is as a broad account of nonprofit leaders’ reported concerns about burnout, finances, staffing and funding in 2026.
What happens next
The report provides a current assessment of nonprofit conditions, but the approved source materials identify no follow-up deadline, policy change or next formal action. Future interpretation will require additional data on funding levels, staffing, service capacity and conditions across individual nonprofit subsectors.
Sources
- State of Nonprofits 2026, Center for Effective Philanthropy
- New Study Highlights Impact of Trump Administration Actions on Nonprofits, National Council of Nonprofits
- Nonprofit Trends Tracker, Urban Institute
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