Nonprofits play a vital role in communities in Michigan and across the U.S. 

The Center for Effective Philanthropy (CEP), a national partner of CMF, recently released a new report, “State of Nonprofits 2024: What Funders Need to Know,” that provides new insights into the well-being and issues facing nonprofit leaders and their staff. 

Key takeaways:  

Nonprofit leaders reported that their funders continued existing commitments to advancing racial equity.  

• In the last year, about 40% of nonprofit leaders stated that racial equity commitments have continued.  
• 25% of leaders noted that their funders have made new commitments to racial equity.  
• More than 33% of nonprofit leaders reported that their current funders either have no commitments to advancing racial equity or have reduced or ended their commitments in the last year. 

Many nonprofit leaders reported that funders are maintaining or making new commitments.  

• Nonprofit leaders reported that funders have made or maintained changes to their grantmaking practices that would benefit their nonprofit partners. 
• In the 2023 survey, more than half of nonprofit leaders reported an increase in trust from their funders, and most reported that at least some of their funders had made application processes easier or reduced reporting requirements in the preceding year.  
• The 2024 survey results show that nearly half of nonprofit leaders indicated that their funders have continued their existing commitments to streamline or revise reporting requirements, reduce or eliminate funding restrictions, and streamline application and proposal processes, or made new commitments to enact them. 

There’s an ongoing concern about burnout.  

• Among the nonprofit leaders surveyed, 95% expressed some level of concern about staff burnout, and more than a third reported that staff burnout has been “very much” a concern to them in the last year.  
• Nonprofit leaders also reported significant concerns about their own burnout. One-third of nonprofit leaders surveyed noted that they are “very much” concerned about their own burnout, and 50% noted an increased concern about their burnout now than last year. 

Most nonprofits reported that financing has been steady and consistent.  

• Survey results showed that nonprofits experienced either a balanced budget or a surplus in the most recently completed fiscal year, and the majority anticipate breaking even or having a surplus this fiscal year. 
• Two-thirds of nonprofit leaders reported that their organization has the equivalent of at least six months’ operating expenses available for emergencies and opportunities in the form of reserves and other funding sources. Just under a third of nonprofit leaders reported a budget deficit in the last fiscal year, and a similar percentage anticipated a budget deficit in the current fiscal year. 

According to the report, these findings present an important opportunity for reflection for the philanthropic field and its partners. 

Want more?  

Read the full report here.  

Join CEP’s upcoming webinar about “The State of Nonprofits” on Thursday, June 20. Register here. 

CEP also released a research snapshot, “How Foundations Are Supporting Grantee Staff Well-Being." The research snapshot offers additional context on the topic of nonprofit staff well-being and burnout in the nonprofit sector. It includes perspectives of nonprofit leaders themselves and resources for foundations, individual donors, and nonprofit leaders who want to learn more about assessing and supporting well-being practices in the nonprofit workplace.