Nonprofits serving people living in poverty face significant challenges in 2025 

According to the most recent U.S. Census Bureau estimates, 11.1% of Americans live below the federal poverty level (FPL). In 2025, in the 48 contiguous states and DC, an individual earning less than $15,060 or a family of four earning less than $32,150 were considered to be living below the FPL—facing increased risks of housing instability, food insecurity, inadequate access to health care, and unequal educational and employment opportunities. Poverty rates are even higher for those who are Black (17.9%), American Indian and Alaska Native (21.2%), two or more races (14.4%), Hispanic/Latinx (16.6%), or disabled (22.3%). 

Nonprofits play a vital role in filling gaps in the social safety net, often serving as a lifeline for individuals and families experiencing poverty. They not only deliver essential goods and services—such as emergency financial assistance, shelter, food, health care, education, and job training—but also advocate for policies that address the root causes of poverty. 

A nationally representative study of 501(c)(3) public charities in the U.S. that deliver services or conduct programs across a broad range of nonprofit activities¹ found that 77% reported serving people living below the FPL; only 23% having programs that focus specifically on people living in poverty. In 2025, many of these organizations are facing government funding disruptions and staff reductions, just as demand for their services is expected to rise.   

Nonprofits serving people living in poverty are more likely to report government funding disruptions

Shares of nonprofits that reported losing at least some government funding and/or experiencing a delay, pause, or freeze in government funding in the first four to six months of 2025 

While the loss of government funding has been a concern for many organizations this year, nonprofits serving people living in poverty were more likely to report losses than those without programs focused on this population (25% vs. 15%). 

Additionally, 31% of nonprofits that serve people living below the FPL reported experiencing delays, pauses, or freezes in government funding, compared with 23% of those without programs focused specifically on this population. These funding disruptions can leave nonprofits with fewer resources to provide critical goods and services and make it harder for them to plan their work. 

Staff reductions are more common among nonprofits serving people living in poverty 

Shares of nonprofits that reported decreasing their total number of employees in the first four to six months of 2025 

 Another major concern for the sector this year is the workforce. Nonprofits serving people living in poverty were more than twice as likely as those without programs focused specifically on this population (18% vs. 8%) to report reducing their total number of employees. As a result, more of these organizations must either do the same work with fewer staff or cut back on programs. 

Nonprofits serving people living in poverty anticipate greater demand ahead 

Shares of nonprofits that anticipate demand for their programs to increase in the next year 

The impact of these cuts could be further exacerbated by anticipated increases in demand. With fewer government funds and fewer employees, these nonprofits anticipate having to do even more work to meet the needs of their communities than nonprofits that are not focused on people living below the FPL (75% vs. 57%). 

Overall, these findings point to a bleak picture for nonprofits serving people living in poverty. With cuts to Medicaid and SNAP, these nonprofits may be left to fill in the gaps. Over the next year, these organizations will face tough decisions about how to handle these government funding disruptions while meeting community needs and supporting their staff. Can they fundraise from other sources or establish or expand an earned revenue stream? Will they be forced to scale back programs when they are needed most? Will they need to cut staff salaries and benefits or even reduce headcount to lower the bottom line?  

Photo credit: AnnaStills/Getty Images

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1. The National Survey of Nonprofit Trends and Impacts is a nationally representative survey of U.S. 501(c)(3) public charities with annual expenses and revenues of $50,000 or more that operate across a wide range of service areas. The survey includes nonprofits that engage in activities ranging from direct service provision to community building and advocacy, and primarily receive rather than provide funds. It excludes foundations, as well as hospitals, higher education institutions, schools (day cares, preschools, and K–12 schools), churches and other houses of worship and other organizations with unique business models and contexts, but it is otherwise representative of established service-providing nonprofits across the country. For more information on our data weighting and the survey’s national representativeness, see the survey methodology  ↩︎