Across the United States, nonprofits form a critical part of the systems that communities rely on every day. More than 1.3 million nonprofit organizations help feed, heal, shelter, educate, and support communities across the country while also driving economic activity and civic engagement.
We often don’t emphasize how nonprofits are essential to core systems like healthcare or education, yet in many communities, especially those historically under-resourced, they function in exactly that way. They provide continuity, trust, and access.
But nonprofits are holding more than they were ever designed to carry. They are filling gaps left by underfunded systems while demand for services continues to rise and the resources needed to sustain the work fail to keep pace.
For Black-led nonprofits in particular, the burden is often heavier. Many of these organizations are deeply rooted in their communities and were created in direct response to unmet needs. Yet they are consistently expected to do more with fewer resources and less sustained institutional support than their peers.
Dionne Bussey Reeder, CEO of Far Southeast Family Strengthening Collaborative, emphasizes, “Too often, nonprofit leaders and frontline teams are expected to carry the weight of complex community challenges without the long-term support necessary to prevent burnout, strengthen retention, and foster sustainable leadership.”
Recent findings from the Center for Effective Philanthropy’s 2026 State of Nonprofits report reflect just how widespread this pressure has become. Nearly three-quarters of nonprofit leaders report increased demand for services, while almost 60% say it has become harder to secure foundation funding. At the same time, 66% report concerns about their organization’s financial stability.
In the Greater Washington region alone, 63% of nonprofit organizations report increased demand, while 66% say funding stability is their biggest challenge.
This imbalance between growing need and limited resources is not temporary, it reflects deeper structural challenges across the sector.
Nearly half of nonprofits report having less than two months of operating reserves. That level of financial fragility makes it difficult to plan, adapt, or respond to crises effectively. When organizational infrastructure weakens, communities feel it immediately.
And the challenge is not just one of funding. At the center of this pressure is nonprofit leadership.
Nonprofit leaders are navigating funding uncertainty, managing teams, building partnerships, responding to crises, and making strategic decisions, often all at once. According to CEP’s recent report, nearly half of nonprofit CEOs say burnout is a major concern, a sharp increase from the previous year. One quarter of nonprofit leaders also report that burnout is significantly affecting staff.
For Naseema Shafi, CEO of Whitman-Walker Health, the demands of nonprofit leadership have become increasingly complex over the last several years: “The pressures on leadership are dynamic and, frankly, grew in 2020 and just kept growing. To do these kinds of roles well, leaders need financial acumen, governance expertise, emotional intelligence, empathy, and a deep commitment to listening to the communities that they serve. It’s truly a tall ask and I have seen a number of my colleagues locally and across the country struggle.”
Shafi also emphasizes that supporting nonprofit leaders requires more than compensation packages alone. “It means community support, time for respite, healthy governance and, at times, fellowship. These are the kinds of investments JBRF has been willing to make in my leadership at Whitman-Walker Health and it’s invaluable.”
In the Greater Washington area, 35% of organizations report staff burnout and retention as a major challenge, and 53% cite compensation and benefits as their top staffing issue.
Leadership sustainability is not only about supporting those currently in these roles. Across the sector, there is growing concern about leadership pipelines as many long-standing community-based organization leaders approach retirement. Building a strong pipeline requires intentional investment in emerging leaders through mentorship, professional development, and opportunities to lead. Without it, organizations risk losing institutional knowledge, community trust, and continuity of impact.
Research from Nonprofit Quarterly highlights a persistent gap between public commitments to equity and the reality of funding and support. Even after increased attention to racial equity, many Black-led organizations have not seen long-term, flexible investment in their leadership or infrastructure.
When leaders are overextended and under-supported, organizations become more vulnerable and communities risk losing critical systems of support.
Strong leadership is also reinforced, or undermined, by governance. Yet governance remains one of the most underinvested areas of nonprofit capacity. According to the study, 44% of organizations identify board development and governance training as a top need.
A well-functioning board can provide strategic direction, accountability, and continuity during periods of uncertainty. Without clarity, alignment, and the right support, however, boards can unintentionally create additional pressure on already stretched leadership teams. Investing in governance is not about compliance. It is about building the internal structure organizations need to operate effectively and sustainably.
The funding environment has also pushed many nonprofits into short-term decision-making. CEP’s recent findings show organizations considering staffing freezes, delaying compensation increases, drawing from reserve funds, reducing services, and restructuring operations in order to remain financially stable.
At the same time, many nonprofits are adapting strategically. Organizations across the country are diversifying revenue streams, pursuing collaborative fundraising models, sharing operational resources, and building cross-sector partnerships to strengthen long-term sustainability. The organizations navigating this moment most effectively are not simply chasing funding. They are investing in strategic planning, leadership development, and operational clarity that allows them to adapt over time.
Partnerships between nonprofits and funders are critical, but support too often remains transactional, limiting nonprofits’ ability to build long-term sustainability.
What nonprofits, particularly those that are Black-led organizations, consistently point to something different: trust-based, long-term partnership. This includes flexible, multi-year funding, investment in leadership and staff wellbeing, support for governance and strategic planning, and a deeper understanding of organizational context.
Dionne also emphasized the importance of investing in people, infrastructure, and operational stability to help nonprofits serve communities consistently over time: “Philanthropic partners like the Jane Bancroft Robison Foundation understand that investing in people, infrastructure, and operational stability is essential to creating lasting impact. Their partnership has helped us remain responsive to vulnerable children, families, and seniors in Ward 8 while building an organization capable of sustaining meaningful change for the future.”
Real partnership is not just about funding what organizations do. It is about strengthening how they operate, adapt, grow, and lead over time.
JBRF’s health equity and opportunity-focused funding, alongside partnerships with groups like the Health Funders Group, reflect a broader commitment to strengthening the systems that sustain nonprofits long term.
Particularly East of the Anacostia River, nonprofits often operate under unnecessarily difficult conditions, yet they sustain communities every day. Strengthening them is not a side strategy. It is essential to building stronger, more resilient communities.