2025 in Review: Program data & survey findings 

In February 2025, the team at Propel met to address the frequent changes made by the federal government and reflected on state and local levels to varying degrees. As a nonprofit Community Development Financial Institution (CDFI) with the unique mission of ensuring nonprofits have access to capital and capacity building resources, we felt an urgency to ensure nonprofits had the information and resources they needed to continue to meet their missions.   

We launched Office Hours and updated scenario planning resources; we got creative with loan products and repayment plans as part of our commitment to patient capital. Through our engagements with clients, and through the research and advocacy from both the National Council of Nonprofits and the Minnesota Council of Nonprofits, we saw themes beginning to emerge: nonprofits were worried about their funding sources, but they were also finding ways to be creative, to collaborate, and to find sustainability amidst the chaos. 

This fall, we launched a small client feedback survey to add quantitative data to the narratives we noticed emerging in our work with nonprofits. We extend a heartfelt thank you to the nonprofit leaders who participated in our 2025 Nonprofit Check-In survey. Sharing your insights and experiences helps tell the story of this moment. We also dug into our own data to better understand what our clients needed, and how we could support them. In sharing some of that information with you, we hope you find at the very least affirmation that you aren’t alone in this work, and at the most, another resource you can point to when you are doing your important work.  

Here are a few things we noted.  

Nonprofits are concerned about cash flow and capital 

• Resources related to scenario planning and cash flow saw an over 60% increase in views from last year to this year, highlighting an effort to keep nonprofit doors open in our communities 

• There has been a 30% increase in Propel loan applications since 2023, and the average loan size has increased across all lending products.   

• Respondents to our 2025 Nonprofit Check-In Survey reported they were most concerned about:  

• Cash flow fluctuations  

• Decreased funding due to shifting priority areas 

• Government funding cuts 

Of those surveyed: 

• 71% are experiencing moderate to major challenges related to government funding cuts, 

• 76% are experiencing moderate to major cash flow fluctuations.  

Funding cuts have led to uncertainty, anxiety, delays in services, the need for creativity and strategy, shifting business models, and accelerated efforts to get things done before the funding runs out.  

Nonprofits need support and collaboration in financial strategy, management, and planning   

• 50 organizations attended our free office hours and asked about:  

• Financial management and planning including scenario planning, cash flow projections, financial forecasting, budget development    

• Fund development support including fundraising strategies, sponsorships, grants, and capital campaign planning  

• Board governance support including board culture, board make-up, by-laws, board meeting design, and conflicts of interest 

• The boards we collaborated with this year most frequently identified areas they felt needed improvement: 

• Having a documented succession plan  

• Providing training and coaching in financial statements and strategy  

• Evaluating itself on a regular basis  

• Our most read blog of the year was Common Cents: Choosing the Right Treasurer for Your Nonprofit Board” reflecting a need for strong governance and financial management  

Nonprofits are struggling to support their staff 

Nonprofits continue to face primary challenges related to reduced funding and cash flow fluctuations. When asked to elaborate on those challenges, they noted the resulting negative effects on their staff including burnout, decrease in wellness, decreased retention, increased stress, and potential lay-offs and salary freezes.    

Ways we have noticed this is impacting nonprofit operations: 

• Finance and leadership staff shortage: Nonprofits are struggling to fill key leadership positions, particularly finance staff and board treasurers.  

• Need for succession planning: In addition to challenges filling financial leadership positions, nonprofits are often unequipped with the tools they need to support staff transitions.  The top area of growth reported in Propel’s Board Self-Assessment was having a documented succession plan for board members. 

Where to go From Here 

The above data affirms we are a sector invested in meeting the challenges that will come in the next year. These challenges that nonprofits are facing are not new. However, the rate that they are experiencing these challenges and the prolonged high levels of uncertainty are making their needs for funding, staff, and financial resilience more urgent.   

The team at Propel is dedicated to helping you meet this moment. The high demand for guidance around financial management, fundraising, and board governance shows that nonprofits are not just surviving; they’re actively seeking out ways to thrive and make a bigger impact. In 2026, we hope we can work with you to continue to spark conversation, inspire action, and increase your capacity and impact to meet your mission. 

The data collection and analysis for this report was done by Amanda Duhon, Strategic Services Project Manager at Propel Nonprofits.

For more research on the state of the nonprofit sector in 2025 we recommend:

• New 2025 data on current conditions of Minnesota’s nonprofit sector
• Research compiled by the National Council of Nonprofits
• 2025 State of the Nonprofit Sector Survey Findings