Nonprofits and Government Revenue: Understanding a Complex Relationship

It’s challenging to keep pace with the wave of federal activity flowing from Washington, D.C. These days, we’re seeing seismic shifts in government grants, significant reductions in the federal workforce, and major policy announcements weekly, if not daily. For nonprofits and foundations, these changes ripple through the sector both directly and indirectly, raising a crucial question: How reliant are nonprofits on federal government funding?

Two studies released in recent weeks tackle this question from different angles, offering insights that not only illuminate the current funding landscape but also reveal persistent gaps in the sector’s data infrastructure.