The State of Giving: A Year of Compounding Pressure

Originally posted to Charity Bridge Fund | January 23, 2026

As 2025 comes to a close, one reality is hard to ignore. For many nonprofits, instability became part of the day-to-day.

The year began with uncertainty and ended with disruption. Government funding delays, freezes, and reductions moved through the systems nonprofits depend on to operate. By year’s end, roughly one-third of nonprofits have reported experiencing a disruption to public funding, according to sector-wide surveys conducted throughout 2025. These were not isolated incidents. They were widespread, cross-sector, and deeply unsettling, forcing difficult decisions to be made about staffing, programming, and service delivery.

At the same time, the need for nonprofit services rose, as household pressures intensified and public dollars contracted. Nonprofit leaders consistently reported increased demand across multiple surveys in early and mid-2025, particularly in food security, housing, healthcare, education, and the arts. Organizations found themselves serving more people with fewer resources.

What made 2025 especially challenging was not just the level of need, but how broadly it was felt. Unlike past crises that concentrated pressure in a few areas, federal funding reductions touched nearly every cause area at once. Food banks, housing providers, arts organizations, healthcare nonprofits, and education groups all felt the strain simultaneously, leaving little room for systems to absorb the impact.

One food bank leader described the current moment as “ten times worse than COVID.” During the pandemic, food insecurity was highly visible and drew emergency funding, media attention, and widespread donor response. Today, the need remains severe, but without the same level of public visibility or coordinated relief.

Many nonprofits also entered 2025 already financially vulnerable. More than one-third ended 2024 with an operating deficit, the highest level recorded in recent nonprofit financial health surveys. With limited reserves, even short-term funding delays quickly widened the gap between rising demand and available resources. For many organizations, 2025 was less about growth or innovation and more about getting through the year.

Looking ahead to 2026, there is growing concern that these pressures will continue. Several federal budget provisions scheduled to take effect in early 2026 are expected to further reduce funding for safety net and social impact programs, according to federal budget analyses and policy briefings. Rather than offering relief, these changes layer new constraints onto an already strained system.

Proposed and phased-in changes to SNAP and other nutrition programs, including expanded work requirements and stricter eligibility rules, are of particular concern. Policy analysts estimate that millions of individuals could lose some or all benefits as these changes are implemented, with states potentially absorbing higher costs or losing federal support. On the ground, this translates directly into increased demand for nonprofit services with fewer public resources to offset it.

At the same time, other funding channels are tightening. State budgets remain under pressure, and many foundations are drawing down reserves built during earlier crisis years. With federal, state, and philanthropic funding all constrained at once, nonprofits face a rare convergence of challenges across every level of support.

In this environment, individual giving becomes even more important. Donors who can give flexibly and consistently play a critical role in helping nonprofits maintain access to essential services, particularly as public funding becomes less predictable.

This is where Charity Bridge Fund is focusing its work.

One of the greatest risks nonprofits face right now is not only the loss of funding, but the loss of understanding. Funding disruptions often move slowly through complex systems and surface months after the original decision was made. By the time services are reduced or programs are scaled back, the connection is often unclear.

Charity Bridge Fund works to help close that gap by supporting nonprofits in sharing what is happening on the ground, in their own words. When nonprofits can clearly communicate how funding shifts affect their work, donors are better positioned to respond in timely and meaningful ways.

The work also helps connect nonprofits with donors who want to step in but may not know where their support is most needed. As public funding becomes less reliable, individual giving, including through donor-advised funds, continues to play a growing role in nonprofit stability.

Helping donors see the bigger picture is equally important. Funding cuts rarely affect a single organization or community in isolation. They create ripple effects across systems like food security and housing, where demand rises quickly as public support contracts. These impacts are felt across state lines, as well. Understanding these connections helps turn one-time gifts into more thoughtful, sustained support.

As uncertainty continues, clarity helps donors champion causes. By translating complex funding challenges into clear, human stories, Charity Bridge Fund aims to support nonprofits and donors alike in navigating what comes next.

At a time when nonprofits are being asked to hold more with less, connection, understanding, and shared responsibility matter more than ever.