Top takeaway: Nonprofits continue to struggle with increased demand and decreased funding at the close of 2025.
After a year of upheaval for many nonprofits, MCN decided to take a quick pulse check of the nonprofit sector. The 2025 Pulse Check report is a continuation of this spring’s 2025 Current Conditions of Minnesota’s Nonprofit Sector report. How have conditions changed since the spring? Find data on funding disruptions, staff morale, and DEI changes in this end-of-year check-in on the state of the sector.
Key Takeaways
Key Takeaway #1: Nonprofits continue to struggle with increasing expenses and decreasing funding. Nonprofits are reporting that they are impacted by grants being cut at the federal and state levels, grants becoming more competitive, and foundations, corporations, and/or individuals donating less.
Key Takeaway #2: Overall demand for services remains high, with nuance depending on activity area.
Many nonprofits reported that community needs are greater, specifically for social assistance programming like housing, food access, and health care. For arts, culture, and humanities nonprofits, the reverse is true, with many of these organizations struggling with decreased demand.
Key Takeaway #3: Shifting priorities as nonprofits adapt to the moment.
In MCN’s 2025 Current Conditions survey collected in April and May of this year, respondents mentioned “uncertainty” of what will happen in the future. In contrast, they used the word “uncertainty” very little throughout responses in this October survey. Instead, respondents stated that they were dealing with the impacts of funding cuts or grant cancellations, changes in demand for services, navigating Executive Orders from the federal administration, and more.
Key Takeaway #4: Nonprofits continue to report low organizational morale.
Over half of respondents reported low organizational morale, listing state and federal disruptions as contributing factors to the low morale. Nonprofit staff continue to worry about the future of their organization, the ability to meet growing needs of their community, and potential targeting because of their own marginalized identities.
About the report
Between October 3 and October 31, 150 nonprofit respondents completed the survey administered by MCN.
This survey builds on findings from MCN’s Current Conditions survey series (last conducted in May 2025), exploring operational and management changes and impacts since January 1st, 2025, and future planning for the upcoming year.
Since 2020, MCN has conducted nine surveys and produced subsequent reports on the impacts of current conditions on the nonprofit sector. MCN’s Current Conditions surveys and reports help everyone understand how current environments affect the nonprofit sector and actions they have been taking.