Philanthropic Advisors Can Help Donors Navigate Uncertain Times

April 22, 2025
Philanthropic Advisors Can Help Donors Navigate Uncertain Times

It’s only April, but “uncertainty” might already be the most-used word of 2025. 

Charities across the U.S. are navigating an uncertain funding landscape, waiting to see how federal funding will change in response to executive orders and shifting policies. Additionally, economic uncertainty has many in the charitable sector concerned about rising operational costs and wondering whether donations will continue amid stock market volatility.

Your news feed is likely dotted with stories about charities affected by decisions made in Washington, D.C. Many organizations have already experienced reductions in anticipated government funding, forcing some to shut down programs or scale back their services.

With updates coming rapidly, making informed decisions about charitable giving can feel overwhelming.

Fortunately, you don’t have to manage this uncertainty on your own. Greater Horizons staff connect with nonprofit leaders every day to understand their current challenges and future outlook. If you have questions about a specific charity or cause, a philanthropic advisor can directly engage with organizations to hear first-hand what they need from their supporters.

We know that changes in federal funding levels will likely affect the charities you support. Data from Candid and the Urban Institute underscore just how critical federal funding is for charities in the U.S.

  • Two-thirds of public charities receive either government grants or contracts.
  • The median nonprofit receiving government grants operates with a budget surplus of 9%, but without government grants, this plunges to a 13% deficit.
  • At least half of government grantees in all subsectors would face a deficit without government grants. Human services is the most vulnerable subsector (71% would face a deficit), followed by health organizations (70%) and education organizations (68%).

If you want to explore the government funding landscape for nonprofits in your state or county, you can use the Urban Institute’s data visualization tool, which provides IRS Form 990 data from 2021—the most recent complete dataset available through the National Center for Charitable Statistics.

As always, our philanthropic advisors are here to help Greater Horizons donors access and interpret the data most relevant to their giving strategies. Contact us with any questions or research requests. We can provide guidance, insights and best practices, so you can give confidently during this uncertain season.

Authored by: Whitney Hosty, Vice President of Philanthropic Services