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By Richard H. Levey
When nonprofits across the United States sneeze, nonprofits within New York City get a cold. National political and fiscal trends are magnified among New York City nonprofits, according to data gathered from a national poll of tax-exempt organizations.
For instance, executive at half of nonprofits in New York City reported being affected by judicial decisions eliminating affirmative action, compared with 36% of nonprofits nationally, once New York City responses were backed out. Changes to immigration laws and policies were felt by 68% of New York City nonprofits, against 54% nationally. And executives at nearly six in 10 (58%) of New York City nonprofits indicated the organizations had been impacted by anti-LGBTQIA+ actions, as opposed to 44% nationally.
These findings are part of Essential, Enduring, And Under Strain: Greater New York City’s Nonprofit Sector in 2025, one in a series of national and region-focused reports from the Nonprofit Finance Fund. This breakout report focuses on responses from the 133 organizations based in New York City.
The impact of legislation and policy is not the only differentiator between New York City nonprofits and those in the rest of the country. Unlike the other breakout reports issued so far by the Nonprofit Finance Fund, the highest percentage of nonprofits surveyed within the New York City are focused on arts and culture, as opposed to human services, economic development, or youth services. New York City nonprofits are also more likely (74%) to exclusively or primarily serve lower-income clients, compared with 66% of nonprofits from the rest of the country.
Respondents’ outlook under the new administration does not offer a lot of optimism. More than four in five (83%) respondents believe the outcome of the 2024 election will result in decreases in government funding, and nearly one-third (66%) anticipate funding drops of more than 10%.
National trends that adversely impact New York City nonprofits strike not just at the heart of the city, they potentially hut its wallet as well. New York City’s 13,000 tax-exempt organizations contribute almost 10% ($78 billion) to the city’s annual GDP while employing around 18% of its workers. More than half (55%) of the nonprofits purchase more than $100,000 in food, services or other supplies from local vendors annually, and 18% spend more than $1 million.
If there is a saving grace against the prevailing uncharitable trends of the national government, it is that New York City charities are more likely to draw from sympathetic county or local governments. Overall, 88% of NYC nonprofits receive funding from individual donors, with other major funding sources including foundations (86%) and governments (78%). Nationally, when NYC results are excluded 71% of nonprofits across the United States receive some sort of government funding.
While the percentage saying they receive federal money was equal — 45% for both New York City and non-New York City nonprofits — state funding was cited by 60% of NYC nonprofits, compared with 53% of the rest of the country’s nonprofits. Similarly, county or local assistance is received by 62% of New York City nonprofits, compared with 51% for the rest of the country.
The comparatively greater reliance on government funding comes with a significant downside. Among New York City nonprofits, during fiscal year 2024 only 19% said they received government funding within the expected pay period, compared with non- New York City nonprofits, 47% of which receive their funds on time. Another 9% of New York City nonprofits report funds coming in a month after they were expected, compared with 16% of non-NYC nonprofits. Exactly half of executives at New York City nonprofits reported government funds arrived at least two months after they were due, against 22% of non-New York City nonprofits.
As the report authors noted, “Government funding delays have been longstanding and severe across New York City nonprofits, with critical services to New Yorkers hanging in the balance. In 2024, over 90% of the human services contracts that NYC government had with nonprofits were registered late. At most agencies, the first payments to human services providers came an average of 6.5 months after the contract’s start date.” As a result, nearly half (45%) of New York City nonprofits had to take on debt while waiting for their funding, 29% delayed payment to vendors, 29% had to draw down saving in order to continue operating and 12% said the delays resulted in them having to pause or reduce services.
The exacerbated government funding delays are part of the reason New York City nonprofits face operating deficits. During FY 2024, 41% of them reported “slight” or “significant” operating results, compared with 365 among all non-New York City nonprofits. Furthermore, while 35% of New York City nonprofits had operating surpluses, 45% of the non-New York City nonprofits reported surpluses.
While not quite as dire as the government funding aspect, foundation funding has proven a mixed bag for New York City nonprofits. There has been a move toward less restrictive funding, with 40% of respondents indicating funding restrictions have loosened since late 2022, while only 15% saying restrictions have increased. But only 13% said those grants have become larger, while 13% said they were smaller. Evaluation times, too, have lengthened: 31% indicated they are waiting longer to hear whether they have received a specific grant, while only 13% report waiting less time.
The longer waiting times, however, may be reflecting deliberateness that comes with grantors making longer-term commitments. More than one third (34%) of respondents said foundations are issuing more multi-year grants, while 18% said fewer multi-year grants were being issued.
Cash-on-hand results for NYC nonprofits affirmed this gloomy financial picture. Just under one quarter (24%) reported having under a month’s worth of cash on hand, compared with 18% of all non-NYC nonprofits. The 28% reporting either two or three months cash on hand also lagged the 34% among the non-NYC nonprofits. But New York City is a place of extremes, and that includes nonprofit wealth: 24% of its nonprofits have more than six months of cash on hand, compared with only 20% of non-NYC nonprofits.
These financial pictures are coming against a backdrop of greater need. A solid 80% of respondents indicated demand for their service increased either significantly or somewhat during fiscal year 2024, while only 3% said demand had diminished. For fiscal year 2025, demand increases are expected by 85% of respondents, while only 2% anticipate decreases.
New York City nonprofit managers are feeling the strain of these headwinds in multiple ways. The high cost of living in the city has long been a consideration for nonprofit leaders, and fiscal year 2024 was no exception, with 80% of respondents indicating it was either a major or minor challenge. Other challenges cited include employing enough staff to do all of the operational or administrative work (81%), employing enough staff to do the organization’s programmatic work (77%), staff burnout (73%) and finding staff with the right skill sets (73%).
This report was based on survey responses from leaders at 133 organizations throughout New York City which were gathered as part of a larger national study. The report is one of three that breaks out responses from specific locations, the other two being the greater Philadelphia area and the greater Los Angeles area. Access to the three reports, as well as additional breakouts from the California Bay Area, the Dallas-Fort Worth region, Georgia and Hawaii are scheduled for later in October. Access to the reports is available here: https://nff.org/2025-survey-regional-data-action
