MCR Stories

Building Nonprofit Strength in Times of Challenge: What We Learned from Our 2025 Needs Assessment

Written by MCR Team | Sep 15, 2025 1:00:00 PM


Pictured above: Ashley (left) facilitates a panel discussion of nonprofit leaders on alternative methods for fundraising rooted in their own unique experiences. Ajara Alghali (TaMaTe Institute) and Barbara Kellom (WISE Partnership) are pictured center and right.

In this blog post, Senior Program Manager Ashley Johnson reflects on lessons learned from our 2025 Needs Assessment, and how MCR will use them to inform our work with nonprofits in 2025 and beyond. 

AJ: At Michigan Community Resources, we believe that nonprofit leaders should not have to operate in scarcity.

Too often, grassroots and community-based organizations are asked to do more with less, stretching their time, funding, and staff capacity to the limit while responding to urgent community needs.

To better understand these challenges—and the strengths that nonprofits bring to their work—we carried out a comprehensive needs assessment in late 2024 and early 2025. We published our findings this summer in our report, 2025 Assessment of Nonprofit Needs: Results & Analysis.

Our goal was simple: to listen deeply to nonprofits and gain an understanding of their experiences to help shape not only our own services, but also the broader ecosystem of support for Michigan nonprofit organizations.

We surveyed 104 nonprofit representatives and conducted 33 follow-up interviews, engaging organizations across Detroit and beyond. What we found reaffirms both the resilience of nonprofit leaders and the structural barriers they continue to face.

Pictured right: Ashley leads a workshop for a nonprofit client's board of directors earlier this year.

What We Heard

Programs are thriving. Despite resource constraints, 93% of survey respondents named their programs as a top strength. Nonprofits feel confident in identifying community needs, developing program scope, and implementing services that matter. This demonstrates the ingenuity and commitment of organizations, even when funding and capacity fall short.

Community engagement and partnerships are key. Collaboration is a hallmark of this sector. Nearly 90% of respondents reported strong capacity for partnerships, and many highlighted community engagement as a core strength. Nonprofits know that their work is strongest when it is rooted in the voices and needs of the people they serve.

Fundraising is the top challenge. More than 70% of respondents cited fundraising as their biggest barrier. While some organizations achieved success in meeting their annual fundraising goals, funding sustainability remains a pressing concern. Only 28% of respondents had a multi-year fund development plan in place.

Human resources, governance, and compliance need attention. Many nonprofits struggle to recruit and retain staff, develop their boards, and stay on top of compliance requirements. These challenges are magnified for smaller organizations and those led by Black and BIPOC leaders, who often have fewer financial resources and staff support than white-led peers.

The nonprofit life cycle matters. Our analysis shows that an organization’s size and staffing structure directly shape its access to resources. Volunteer-run groups, for example, face very different challenges than organizations with mostly paid staff—and both require support that acknowledges their life cycle stage.

What This Means for Nonprofits

This report is more than a snapshot of challenges—it’s a roadmap. For nonprofits, the findings may spark reflection:

  • Do we have a clear plan for fundraising sustainability?
  • How are we supporting staff wellness and capacity?
  • Where do we need board development or compliance resources?
  • How are we leveraging partnerships to fill capacity gaps?

These are the kinds of questions nonprofits can use to strengthen their operations and advocate for the resources they need.

Where We Go From Here

At MCR, we are committed to using these findings to sharpen our services, advocate for equitable funding, and support nonprofits in building the infrastructure they need to thrive. But we can’t do it alone. We invite funders, partners, and nonprofit leaders to engage with this data, share it with their networks, and use it to inform their own strategies.

Together, we can create a nonprofit sector where organizations aren’t just surviving—but leading boldly, with the abundance and wellness they deserve.

Read our report, Assessment of Nonprofit Needs 2025: Results and Analysis, on our website.

Send Ashley a note at ajohnson@mi-community.org.