Filling vacant staff positions is still difficult at nonprofits, but it is 13 points better now than last year. Data from the Center for Effective Philanthropy (CEP) shows 36% of executives reported having either some or a lot a difficulty filling positions, down from 49% from CEP’s 2024 report.
However, those executives reported still having difficulty pursuing organizational missions in a complex environment shaped by the current political climate and future economic uncertainty.
Leaders responding to the survey for the State of Nonprofits 2025: What Funders Need To Know most commonly indicated that actions by the federal government are affecting their work, either through the outcomes of the 2024 U.S. federal elections (77%), through changes in federal government funding (73%) and changes in state or local government funding (61%).
Survey respondents said that these pressures are compounded by persistent staffing challenges, including difficulties with hiring, retaining and managing staff capacity, offering competitive compensation, and maintaining staff morale.
“Our data suggests that nonprofits are reeling from what their leaders see as multiple, simultaneous challenges, including the political context and what it may mean for community needs, concerns about future funding, the difficulty paying staff adequately, and the list goes on,” said CEP President Phil Buchanan. “It’s not surprising, then, that many of them report deep concern for the burnout of their staffs and themselves. If ever there was a time for funders to dig deep to support their key grantees, it is now.”
While most of the respondents to the survey reported a balanced budget or a surplus in the last fiscal year, many expressed concerns for the future, citing uncertainty about future funding levels and increasing costs. More than half of nonprofit leaders also reported that their organization’s biggest staffing challenges stem from insufficient funding to recruit, retain, and support staff.
“Maintaining clarity of mission and financial sustainability over the next few years, in the current political climate, will be an existential challenge,” noted one nonprofit leader responding to CEP’s survey.
Nearly all of the respondents expressed concern about their own burnout and reported that burnout is affecting their staffs. The percentage of leaders reporting concern about their burnout has remained steady at nearly 90% since CEP’s 2024 State of Nonprofits report. Nonprofit leaders noted that burnout stems from both day-to-day work as well as the broader political climate.
Nonprofit leaders who identify as people of color were slightly more likely to indicate that burnout is significantly impacting their staff and themselves. “The need for our services far outweighs our ability to meet the need in a way that does not completely overwhelm our staff and burn them out,” said one nonprofit leader quoted in the report.
The findings are based on survey responses from leaders participating in CEP’s Nonprofit Voice Project. It is a sample of U.S.- based nonprofits that is broadly representative of organizations receiving at least some foundation funding. CEP surveyed 893 nonprofit leaders this past February and received responses from 585 organizations, representing a 66% response rate.
Some of the respondents suggested that flexible funding from their foundation funders would be most helpful in supporting their work. Flexible support for core operations — including staff salaries and organizational infrastructure — is critical to their ability to operate effectively, and that larger and less restricted grants can help them manage immediate challenges and plan for the long term.
The project team for the report were Elisha Smith Arrillaga, Ph.D.; Ellie Buteau, Ph.D.; Caroline Gasparini; Seara Grundhoefer; Christina Im; and Emily Yang. It was authored by Elisha Smith Arrillaga, Ph.D.; Emily Yang; and Christina Im.
