In April 2025, MNA partnered with the Federal Reserve Bank of Minneapolis to survey nonprofits across the state about funding trends, operating trends, and service demand. Unsurprisingly, the survey revealed a few major themes – uncertainty, tight budgets, and increasing need.
This week, the Minneapolis Fed released their report on the survey findings, “Nonprofits roiled by funding cuts—and threats of more cuts”, which lays out the realities for nonprofits across Montana and the Dakotas. Diving deeper into the Montana specific results, compiled from 119 survey respondents, here are some of the things we found.
Revenue is Dropping. Costs are Climbing. And the Demand? Higher Than Ever.
Here’s what we’re seeing through the first three months of 2025:
- 78% of nonprofits reported flat or declining revenue in the most recent quarter and 86% expect flat or declining revenue over the next three months.
- Federal funding is critical: 39% of all organizations—and 49% of health and human service nonprofits—identify federal grants/contracts as “extremely important.”
- 22% have already experienced “significant decreases” in federal funding and 30% expect significant decreases in the next three months.
- Individual donations are weakening: 62% saw flat or decreased giving recently and 70% expect this trend to continue.
At the same time, nearly 90% of nonprofits have seen their costs go up, often by 5% or more. And more than 90% have not hired new staff in 2025 nor plan to in the immediate future.
As one nonprofit leader put it:
“We have an increased need for services, but our revenue hasn’t kept up. We’ve been on a hiring freeze since January.”
Nonprofits Are Being Asked to Do More with Less
Across Montana, organizations are being asked to meet growing needs with fewer resources. Some are dipping into reserves. Others are bracing for layoffs or shutting down services.
“We’re surviving off our reserves, sadly—and those are almost gone.”
—Central MT nonprofit
“By September, we’re looking at reducing staff and cutting back support to survivors.”
—MT domestic violence organization
It’s a perfect storm—especially in rural areas, where nonprofits are often the only safety net for miles.
Why This Matters
As we all know at a core level, nonprofits are the backbone of communities, providing steady and compassionate support to so many. They deliver food, shelter, childcare, mental health services, support for survivors, and so much more. And in rural areas, they stand in support of their community as the only option for providing basic needs.
One nonprofit in southwest Montana said it best:
“Federal grants make up 80% of our budget. Without them, we can’t provide services in the remote areas where they’re most needed.”
Where Do We Go From Here?
Montana’s nonprofits are showing up for our communities every single day. But they’re doing it on thinner budgets, with fewer people, and in tougher conditions than ever before.
The challenges are real. But so is the impact nonprofits have when they’re given the resources to do their work.
A silver lining tucked within the survey results is an enduring optimism from sector leaders. Only 5% of survey respondents said they were “very pessimistic” about the future. The vast majority of leaders remain hopeful due to the strength of our teams, our community support, and a belief in the relevance and necessity of their missions. Our resilience and commitment to our state and our community will allow us to find a path forward, together, in spite of whatever comes next.