Pictured: MCR's Heather Nugen discusses strategy at a staff meeting.
These somehow still early months of the Trump administration’s second term have heightened the urgency of the findings from our 2025 Needs Assessment Report. Nonprofits—especially those working in advocacy, community organizing, or serving marginalized communities—are facing increased scrutiny and policy driven threats to their activities and funding. Executive orders and austerity measures have already begun to squeeze both foundations and frontline organizations.
These issues compound the an already resource-scarce sector, where many organizations feel that having to compete with each other gets in the way of delivering on their programming.
The findings we got from last year's Needs Assessment survey, which we shared in our report, confirmed that nonprofits were already stretched thin before the new administration. Fund development emerged as the number one challenge across the sector, and many organizations reported rising expenses without matching increases in revenue. Now, with federal funding cuts and philanthropic giving under new pressures, the sustainability gap for nonprofits is widening.
The information we received on legal compliance is also critical in this context. Organizations told us they need more resources to navigate fiduciary duties, IRS/state requirements, and the legal implications of their programming. As government scrutiny increases, the consequences of missteps—whether missed deadlines, incomplete filings, or misunderstood restrictions—become even more serious. This is especially pressing for grassroots and BIPOC-led organizations, which already operate with fewer staff and resources to manage compliance.
Despite compounding challenges, our Needs Assessment findings suggested that the struggles faced by nonprofits in Michigan do not diminish their importance. On the contrary, the data we collected showcases the anchoring role nonprofits have serving their communities, and affirms their greatest strengths—program excellence, deep community engagement, and partnerships. These assets are vital as organizations fill in for public and private sector gaps, and push back against the systemic inequities and policy threats that threaten people and communities.
Yet without adequate investment, even the strongest programs risk becoming unsustainable.
In this political moment, our findings are a call to action. They show funders, partners, and policymakers that nonprofits are not failing—they are succeeding in spite of systemic barriers. The threats posed by the Trump administration only reinforce the need for stronger investment in organizational infrastructure, equitable funding for Black-led and grassroots groups, and intermediary support to ensure nonprofits can withstand political headwinds.
Pictured: Nonprofit leaders discuss successes and challenges at a recent MCR event.
The investments made in nonprofit and grassroots organizations are not simply bandages on hemorrhaging wounds, but are community investments. What our nonprofits across the state have shared with us suggests that now is the time to reaffirm support. Our data paints a picture of a sector that, despite increasing challenges, powers infrastructure to build and rebuild, multiplies resources, and ties communities together.
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Our 2025 Needs Assessment Report showcases data collected from our Survey, conducted in 2024. As part of our ongoing practice of deep listening, our 2025 Nonprofit Needs Assessment Survey is now live, seeking input on the strengths and challenges of nonprofits in Michigan. You can fill out the survey here.