A Stress Test for Civil Society: What This Moment Demands of Philanthropy and Boards
I’ve been advising and serving on boards across the nonprofit and philanthropic ecosystem for a long time, and the new Center for Effective Philanthropy report, A Sector in Crisis, confirms what many leaders are quietly wrestling with right now. This is not a temporary disruption. It is a structural stress test for civil society, and many organizations are being asked to do more for their communities with fewer resources and far greater risk.
Cover image of the report from CEP. Click to read the report.
A few findings from the report that I noticed that should stop funders, boards, and policymakers in their tracks:
Nearly two-thirds of nonprofit leaders report increased demand for services, with another 16 percent expecting demand to rise further, exceeding levels seen during the COVID-19 crisis.
Sixty-nine percent of nonprofits have lost funding from at least one source in 2025, and 71 percent of leaders are concerned about their organization’s financial stability.
Almost one third of nonprofits have already reduced services, and many have laid off staff, even as community needs continue to grow.
While 64 percent of foundations report providing emergency or rapid response grants and about 30 percent increased payout, 93 percent of nonprofit leaders interviewed say they are dissatisfied with philanthropy’s overall response.
More than half of nonprofit leaders want foundations to be bolder and more outspoken, while roughly 40 percent of foundation leaders question whether philanthropy should step in where government has pulled back.
From my vantage point as an advisor and board member, this moment is less about incremental tweaks and more about clarity of purpose. If this isn’t a time to move money faster, loosen constraints, share risk, and use institutional voice in defense of communities, it’s hard to imagine when that time would be. The choices made now will shape not just which organizations survive, but what kind of civil society we have on the other side.
Reach out if you’d like to explore paths forward in this new and evolving landscape.
