Keeping a Pulse on the Region: Survey Reveals Insights on the State of the DMV Nonprofit Sector
Our region’s nonprofit sector is at an inflection point. Federal funding changes and economic shifts are creating real challenges for organizations providing essential services across our region—but they're also revealing opportunities for innovation, collaboration, and strategic reinvestment in the safety net our communities depend on.
In January 2025, The Community Foundation relaunched our Community Resilience Initiative to meet this moment with both urgency and optimism. Thanks to donors and partners who recognize what's at stake, we're mobilizing resources and coordinating a philanthropic strategy that responds to emerging community needs while strengthening the long-term capacity of nonprofits across DC, Montgomery County, Prince George's County, and Northern Virginia. But responding effectively requires that we understand exactly what organizations are experiencing—and where flexible support can make the greatest difference.
In partnership with local funders and with the support of our research partner, the American Institutes for Research, we launched a regional survey last spring that tracks and analyzes responses from nearly 300 unique organizations on a quarterly basis, giving us real-time insights to help direct resources where they're needed most and advocate for policy changes that support the communities we serve.
The latest results, released in January 2026, show challenges are intensifying—and they underscore why flexible, responsive funding matters now more than ever.
The Impact of Funding Cuts by the Numbers
Among the 286 organizations surveyed, two-thirds now report being impacted by federal actions, up from 61% six months ago. Twenty-five organizations have lost over $500,000 in funding—compared to 16 in July—and six organizations report losing more than half their total budget.
The numbers translate into real consequences, including:
155 organizations report increased financial strain (up 24% since July),
81 organizations have implemented staff layoffs or hiring freezes (up 29%),
82 organizations have reduced services or closed programs (up 26%),
95 organizations have delayed or canceled planned initiatives (up 25%).
These reductions are happening precisely when demand for services is surging—organizations report dramatic increases in requests for food assistance, housing support, mental health services, and family programs.
The combination of increased demand and increased financial pressure has left some organizations contemplating their long-term future in the region. Nine percent of organizations are now considering mergers, and 3% are exploring the possibility of shuttering operations entirely. These trends point to potential long-term structural damage to our nonprofit ecosystem—but they also show us exactly where intervention can make a difference.
Turning Insights into Impact Through Informative Grantmaking
Guided by the insights from this nonprofit survey, we have deployed $14.3 million in grants and technical assistance to organizations across the Greater Washington region to convene, support, and advocate for the sector.
Click here to read more about the impact of Community Resilience Bridge Grants!
This work would not have been possible without the generosity of our donors and partners who have stepped up to meet the needs of our community in various ways, including:
Making a gift to the Community Resilience Fund to support nonprofits navigating funding uncertainty
Supporting organizations directly – especially nonprofits in your community facing challenges
Advocating on behalf of the nonprofit sector and staying informed about how policy changes continue to impact our community
Sharing information with others in your network who care about strengthening our region's nonprofit infrastructure
Building resilience requires all of us. We're grateful to the nonprofit leaders who have shared their experiences through this survey, providing the insights that help shape our response. We're thankful to the donors and partners who have stepped up with resources when they're needed most. And we're committed to continuing this collaborative approach—where data informs action, where challenges are met with strategic support, and where the strength of Greater Washington's nonprofit sector reflects the strength of our entire community.
If you are interested in learning more about the Community Resilience Initiative data and grantmaking strategy, contact Darius Graham, Managing Director of Community Investment at [email protected].
For more information about supporting this work, contact Chris Howie, Managing Director of Development at [email protected] or make a donation on our website!