New survey finds nonprofits demonstrate resilience and strategic growth amid uncertainty 

• 80% say their organization has been impacted by policies and actions related to federal funding.
• To build resilience, nonprofits are collaborating with similar organizations (64%) and increasing technology spending (74%).
• As they revisit their organizational strategy, 88% plan to meaningfully expand or shift the scope of their mission.

Nonprofits are showcasing their adaptive strength during a transformative period. Organizations across subsectors are responding to varying challenges—from federal funding cuts to evolving donor priorities—by pursuing strategic partnerships, investing in technology, and expanding their missions to meet growing community needs. BDO's 2025 Nonprofit Standards Benchmarking Report, now in its ninth edition, asks critical questions of 250 nonprofit leaders about financial health, strategic priorities, technology adoption, and organizational transformation. Leaders represent the higher education, grantmaking, health and human services, international development, and public charity sectors.

“While some organizations face severe policy, regulatory, and funding challenges, the nonprofit sector as a whole is using this moment to accelerate strategic transformations, invest in partnerships, and reimagine program, operating, and funding models,” said Andrea Espinola Wilson, managing principal and co-leader of BDO's Nonprofit & Education practice. “The sector adapted and evolved during COVID-19 and built muscles of efficiency. Now those lessons are being put to the test.”

Key findings from this year's survey include:

• Federal funding and policy changes cause disruption: 80% of nonprofits say their organization has felt the impacts of policies and actions affecting federal funding.
• But funding cuts have yet to fully impact revenue: Despite feeling some impacts of policies and actions affecting federal funding, 86% of nonprofit leaders say revenue increased during their most recent fiscal year and 90% expect continued growth over the next 12 months. Some organizations may have yet to feel the full extent of cuts, while others may remain unaffected.
• Mission expansion drives go-forward strategy: 88% of nonprofits plan to meaningfully expand or shift their mission scopes, driven by evolving community needs (56%) and opportunities to reach new constituents (48%).
• Technology investment accelerates: 74% are increasing technology spending, with 97% now using artificial intelligence across operations—from financial management to program optimization and strategic planning.
• Revenue diversification and new partnerships prioritized: Nearly all organizations (97%) plan to diversify revenue streams over the next 12 months, with 53% targeting new donor segments. To continue to build resilience, 64% say they are partnering with similar nonprofit organizations.

In addition to the sector overview report, BDO has released two snapshot reports, showcasing the findings from higher education respondents and grantmaker respondents.

Grantmakers adapt to new funding reality

A snapshot report shows that as federal funding shrinks and nonprofit needs grow, grantmakers are pioneering new philanthropic models and deepening grantee relationships through increased flexibility and capacity-building support.

Key findings from the grantmaker snapshot include:

• Flexibility increases: 46% are increasing operational flexibility for indirect cost rate recovery to help grantees avoid the "starvation cycle."
• Strategic partnerships expand: 68% plan to enter partnerships with similar organizations, while 64% are exploring for-profit collaborations.
• Technology drives efficiency: 80% are increasing technology spending to streamline administrative efficiency, grant management and improve program delivery.

Higher education embraces strategic transformation

The higher education snapshot reveals that despite budget constraints and policy uncertainty, colleges and universities are investing in partnerships and technology to reinvent educational offerings.

Key findings from the higher education snapshot include:

• Demand remains strong: 38% report a significant increase in demand for their services since the start of 2025.
• Partnerships proliferate: 74% plan strategic partnerships with for-profit organizations, while 68% are exploring nonprofit collaborations.
• Technology investment leads: 64% are increasing technology spending primarily to improve program and service delivery.

BDO will release three additional snapshot reports in November showcasing responses from public charities, health and human services organizations, and international nongovernmental organizations.

ABOUT THE SURVEY

This year’s Nonprofit Standards Benchmarking Survey was fielded in May and June 2025 by Rabin Roberts Research company. It surveyed 250 nonprofit leaders of health and human services organizations, public charities, colleges and universities, grantmakers, and international nongovernmental organizations.

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"The nonprofit sector adapted and evolved during COVID-19 and built muscles of efficiency. Now those lessons are being put to the test.”