It might seem hard to believe, but if you pay attention you see the days are already getting a little shorter, back-to-school rules the store shelves, and there’s more summer behind us than ahead. Add to that the fact that Labor Day this year comes as early as it possibly can – Monday, September 1st – and nonprofits know the crucial year-end giving season is right around the corner. Once Labor Day rolls around, there are 122 days left in the year. Four months to make the most of that giving season.

With many organizations already in their new fiscal year, 2025 has already brought more than its share of uncertainty. What’s happening with government grants? Is an administration threat or Executive Order actually going to take effect and, if so, when? What’s the impact of the massive tax and spending measure on charitable organizations and donors? How can we prepare for the road ahead? In a year of seismic change, it’s an ideal time to take stock of some key issues while summer is still here.

The freezing of federal grants and loans continues to have the potential for a profound impact. The Associated Press and Chronicle of Philanthropy recently took a close look at cuts to government grants for nonprofits, saying “President Donald Trump’s policies are poised to upend decades of partnerships the federal government has built with nonprofits to help people in their communities.” The report includes an analysis from the Urban Institute, which found $267 billion was granted to nonprofits by federal, state and local governments in 2021, the most recent year for which comprehensive nonprofit tax forms are available. It notes that things such as contracts and reimbursements are not included, so that figure is an underestimate.  

But it’s hard to overestimate the financial risk, with the Urban Institute saying “In every state, every congressional district, and more than 95 percent of counties in the United States, public charities receive government grants. Without these grants, most nonprofits would be unable to cover their expenses.”

Recent months have been challenging for the nation’s nonprofit workforce, with the Chronicle launching a layoff tracker that finds from January 20th through June 30th, the sector lost at least 22,757 full-time jobs, many in healthcare. The Chronicle notes that because of several factors when it comes to reporting layoffs, those numbers are likely an undercount. 

There are some bright spots to be found. Earlier this summer, the annual Giving USA report found U.S. charitable giving by individuals, bequests, foundations and corporations rose to $592.50 billion last year, up 3.3% when adjusted for inflation, and with total giving outpacing inflation for the first time in three years.

The National Council of Nonprofits says there are both negatives and silver linings for nonprofits when it comes to that major tax package. The Council says “The final bill – approved by the House and Senate – will ultimately reduce resources available to nonprofit organizations, negatively impacting their ability to provide essential services to their local communities. The final bill also harms millions of people by taking away their access to healthcare and food assistance.” And there are some provisions that disincentivize charitable giving.

But, it’s not all bad news, with the Council noting “thanks to the effective advocacy of nonprofits nationwide and congressional champions, the final bill includes a new universal charitable deduction to encourage charitable giving among the approximately 90% of taxpayers who do not itemize their deductions.”

A mixed bag for sure, but armed with information and motivation, and knowing there are just a few fast-moving months to end 2025 as strongly as possible, we are geared up for whatever this year like none other has in store and, as always, are here to help partner with you.