Last year, large cuts to government funding left many nonprofits reeling. Despite that, a new survey finds that amidst those funding cuts, the majority of nonprofits are still reporting an increase in revenue.
CCS Fundraising, a consulting firm for nonprofits, recently released the results of its online survey conducted between late October and December 2025. Responses came from 618 nonprofits in 47 states and 18 countries, and 64% of respondents were fundraising or organizational leaders.
Survey results reveal that 61% of nonprofits reported a decline in government funding in 2025. Of all respondents, 62% of nonprofits also reported revenue growth. Of 12 sectors represented, Religion was the 4th highest sector in increased revenue, with 65% reporting an increase.
Government policies and regulations have affected nonprofits, with 47% of all respondents reporting a negative effect. But only 16% from the Religion sector reported a negative impact.
The four sectors most likely to report negative impacts are Associations (67%), Environment & Animals organizations (67%), Advocacy (64%), and Arts & Culture (61%). Meanwhile, Religion organizations are most likely to report no change from government policies (63%).
Although government funding was cut in 2025, 62% of respondents reported a growth in revenue.
Despite the reported negative impacts, there is only one sector where a majority of its nonprofits also reported a decrease in revenue — 58% of Associations. Of Advocacy nonprofits, 36% reported a decrease; Arts & Culture, 20%; and Environment & Animals, 21%. Out of those nonprofits, at least 55% within each sector — excluding Associations — reported an increase in revenue.
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Only 4% of respondents expect an increase in Federal and National Government grants this year, and only 12% expect an increase in State and Regional Government grants. This is a stark contrast from expectations for other revenue sources. At least 30% of organizations expected most revenue sources to increase in 2026, with 57% expecting an increase in major gifts and 52% expecting an increase in mid-level gifts.
Although a majority of organizations expect no change in federal and national (51%) and state and regional (58%) grants, there has also been an increase in organizations that expected declines.
“Last year, 63% of organizations anticipated no change and 17% expected declines,” the report said. “This year, 45% expect declines in federal or national funding and 30% expect declines in state or regional funding, making public funding the most vulnerable revenue source,” the study said.
The study also reports data on organizations using digital communications. Of all respondents, 69% use targeted digital communications — such as email — to retain new donors, and similarly 59% rely on digital or social media campaigns to engage the “next generation of philanthropists.”
But there’s a dilemma.
“Donor acquisition (68%) and retention (48%) remain the most commonly cited fundraising challenges,” the study said. “Taken together, these findings suggest that while digital tools are widely in use, many organizations are not yet seeing them translate into sustained growth or stronger long-term engagement,” the study says.
CCS Fundraising suggests using digital tools and channels to engage young donors, but that it is only the first step.
“The next is to move beyond the medium and focus on the message: cause-driven, personalized, and relationship-based approaches are underutilized, yet they have the potential to strengthen engagement early and build longterm loyalty across the donor lifecycle,” the study said.
A small amount of donations, 11%, occurred monthly while 40% were one-time gifts and 42% were annual. Overall, organizations expect to rely more so on individual, rather than institution, funding sources.
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