Foundations Adjust Funding Strategies Amid Increased Demand and Government Cuts
Nonprofit organizations in the U.S. are facing increased demand for their services while simultaneously experiencing reduced funding from various sources, including government, foundations, and individual donors. According to a report by The Center for Effective Philanthropy, nearly two-thirds of nonprofit leaders report heightened demand, with over half indicating significant impacts on their service delivery capabilities. In response, some foundations are altering their funding strategies by offering emergency or rapid response grants, increasing unrestricted grants, and changing payout rates to provide more stability. Additionally, foundations are engaging in new collaborations with grantees and other funders, and offering resources for staff well-being and legal support. Despite these efforts, many nonprofit leaders believe more can be done to support their missions, especially in light of federal funding cuts and political pressures. 
