Navigating funding disruption in the nonprofit sector

Federal cuts are reshaping the social good sector

The social good sector is being redefined by the weight of federal cuts. According to Bonterra’s 2025 federal funding survey: 

As federal dollars disappear, many organizations are teetering between survival and shutdown. Against this backdrop, rising community needs are stretching resources to their limits. Crisis hotlines struggle to keep up as more calls go unanswered. Families are displaced after natural disasters, creating urgent demand for housing and relief. And grassroots organizations, already operating with limited capacity, face the double burden of increased demand and reduced resources.  

Despite these challenges, we are witnessing sparks of resilience and innovation. Nonprofits are adapting, funders are reconsidering their role, and a new wave of intentional donors (what we call the Generosity Generation) is rising to meet the moment. 

What’s at risk if we don’t adapt 

The reality is clear: Cuts and crises are no longer isolated events. They represent the new operating environment for nonprofits and funders alike. Communities will remain at risk unless the sector adapts with speed and clarity. 

Three truths stand out: 

1. Communities are being stretched to their limits, and this status quo is unsustainable 
2. Nonprofits cannot meet rising demand if they’re forced to scale back critical programs 
3. Technology and data-driven solutions are essential to building equity, resilience, and long-term sustainability 

In short: Guesswork won’t cut it anymore. The sector needs strategies that are proven, scalable, and impact driven.  

How organizations can turn challenges into impact 

In our latest report, “Meet the moment: Navigating funding disruption,” you’ll find data-driven solutions, case studies, and guidance for nonprofits and funders navigating this uncertain landscape.  

The report draws on a survey of 2,608 nonprofit professionals and 107 funders, alongside platform data from Bonterra’s suite of tools and customer interviews. Inside, you’ll find: 

This is more than a snapshot. It’s a roadmap for how the social good sector can adapt and thrive in an environment where disruption is the norm. 

Bonterra’s role in driving clarity 

With two decades of experience and the most comprehensive data network in social good, Bonterra is uniquely positioned to help organizations weather disruption and build resilience. 

Our solutions equip nonprofits and funders to: 

• Grow recurring revenue with technology that deepens donor relationships 
• Diversify funding through smarter acquisitions, corporate partnerships, and foundation grants 
• Streamline operations with automated workflows, simplified reporting, and powerful case management 
• Scale impact with employee engagement platforms and equitable discovery tools for funders 

A glimpse of solutions in action 

Across the country, organizations are already responding with resilience: 

• Nonprofits are diversifying their funding strategies — strengthening community partnerships, reaching out to major donors, and launching new campaigns to broaden their supporter base.
• Funders are shifting toward trust-based practices, offering more flexible dollars and reducing administrative burdens. 
• CSR leaders are leveraging corporate platforms to mobilize employees, match gifts, and identify underfunded partners that are closest to the issues. 

For example: 

• I Live Here I Give Here used Bonterra’s GiveGab platform to raise $10 million in unrestricted funding for more than 750 local nonprofits in Texas during Amplify Austin Day. 
• Justice for My Sister, facing the end of federal funding, turned to Bonterra Network for Good to sustain teen relationship programming and empower first-time filmmakers. 
• Feeding Texas uses Bonterra EveryAction to mobilize supporters, drive advocacy, and strengthen collaboration across its 21 food banks. 

These stories show what’s possible when innovation meets purpose, and they represent just a fraction of what’s happening across the sector. 

Learn more in our full report 

The challenges are real, and so is the opportunity to act with courage and clarity. The “Meet the moment” report not only captures what’s happening today but offers a practical guide for what to do next. Explore how your organization compares and discover the blueprint to turn disruption into momentum.