As confusion over the U.S. federal funding freeze continues, nonprofits — and those they lift up — are uncertain and concerned about the future. At the same time, many companies are asking what steps they can take to meaningfully support the nonprofits relying on them.
The role of corporate and individual donors has never been more crucial, and sustained giving will be essential in helping nonprofits navigate the turbulence of the days, weeks and years ahead.
Nonprofits and companies have long been successful partners in driving social change — the combination is an extremely powerful social support system. This is yet another opportunity, and a responsibility, we can help tackle together by taking strategic action.
The risk to the nonprofit ecosystem
There’s a lot of unpredictability regarding the impact of federal funding cuts on nonprofits. According to nonprofit data resource Candid, about 30% of larger U.S. nonprofits receive federal funding — amounting to over $300 billion annually. That funding supports everything from food security to health care and housing, issues our clients and their employees are united in supporting.
Freezes and policy changes related to this funding puts incredible pressure on nonprofits, affecting short- and long-term cash flow management, budgeting, staffing and service delivery. A report by the Urban Institute found that in early 2025 alone, about one in three nonprofits experienced a government funding disruption and nearly a quarter of them reduced their programs.
Vanishing funds pose a risk far beyond the organizations themselves. When funding disappears, it affects real people who rely on these services everyday: families accessing food assistance, older adults relying on support programs, children receiving care, individuals navigating addiction or patients receiving on-going treatment.
These aren’t just hypothetical scenarios — they’re already happening. Mental health projects are being shut down, thousands of people living with HIV are losing access to lifesaving treatment and journalists operating in conflict zones can no longer depend on the emergency support systems that protect them in the field.
In a recent episode of the Speaking of Purpose by Benevity podcast, host Sonia Khosla, Chief Impact Officer at Benevity, spoke with Michael Thatcher, CEO of Charity Navigator, and Victoria Vrana, CEO of Global Giving, about the the growing strain on nonprofit budgets and what it will take to build lasting resilience in a changing funding landscape.
6 actions companies can take right now
As corporate citizens who care deeply about making a positive impact, we are all in this together. Now is the time to take action and show support for our partners. Here’s how to support nonprofits:
- Remove granting restrictions: Give your nonprofit partners the discretion over how to best use funds. Needs and priorities may shift as policies shift, and unrestricted granting empowers nonprofits to be flexible and agile with how resources are used.
- Offer pro bono services: Share expertise and experience through offers like legal advice, financial forecasting, skills-based volunteering and any other relevant aid you can provide.
- Run an employee giving campaign: Encouraging people not to wait to help the nonprofits they care about. If you’re a Benevity client, access our ready-to-go News Item about the risks associated with a federal funding freeze, available through your admin dashboard, to help you quickly set up your own campaign.
- Encourage ongoing support through recurring donations: Not everyone can give a lot of money upfront, but giving on an ongoing basis, including donating with every paycheck through payroll, provides continuity and stability for nonprofits, which goes a long way.
- Amplify employees’ impact through donation matching: Consider an increased matching offer of 2:1 or even 3:1 for a set period of time, if you have the budget.
- Join the conversation: The power of collaboration cannot be understated. Talk to your nonprofit partners about other ways you can support them. Reach out to your peers to share questions, advice and strategies on how to ensure sustained giving, like our clients are doing in the Benevity Community through events like Huddles.
3 ways nonprofits can increase visibility
If you’re a nonprofit looking to attract more engagement, we’re here to help. There are immediate opportunities you can take in the Benevity ecosystem to help mitigate this funding uncertainty. Here are some best practices and resources:
- Connect with the corporate partners you already have: See if your partners are willing to run a giving campaign or fast-track their granting commitments. They can be your biggest advocates.
- Ask for specific expertise or pro bono help: It’s not always clear what kind of help a nonprofit might need — tell them how they can best support you.
- Update your profile on the Benevity Causes Portal: Share your mission and needs to reach more potential supporters, and consider creating a specific project or volunteering opportunities to focus support.
The power of the collective
Our client community has consistently shown us the power of collective action in times of need. Over the last 16 years, they have contributed more than $18.5 billion and volunteered 99 million hours, supporting 513,000 nonprofits worldwide. They have helped drive meaningful change — from social justice and climate action to a global pandemic, wildfires, geopolitical unrest and war.
Working together to help sustain the vital efforts of nonprofits — who we all rely on to build safe, sustainable and just communities — is one way leaders and their employees can be a stabilizing force right now, demonstrating the impact corporations can spur when people need it most.
If you’re a Benevity client, reach out to your CSM for guidance on taking action today.
Learn more about the Benevity Enterprise Impact Platform.
