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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.
Changes cause disruption, with 80% of nonprofit managers saying their organizations have 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 managers responding to a survey by accounting and financial services firm BDO said that revenue increased during their most recent fiscal year and 90% expect continued growth over the next 12 months.
The information is the basis of BDO’s “2025 Nonprofit Standards Benchmarking Report.” Questions were asked of 250 nonprofit leaders about financial health, strategic priorities, technology adoption, and organizational transformation. Those leaders represent the higher education, grantmaking, health and human services, international development, and public charity sectors.
The survey was fielded during May and June 2025 by Rabin Roberts Research company.
Key findings from this year’s survey include:
* 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: leaders at nearly all organizations (97%) plan to diversify revenue streams during the next 12 months, with 53% targeting new donor segments. To continue to build resilience, 64% say they are partnering with similar nonprofit organizations.
