By: John S. Morlu II, CPA
In 2025, nonprofit CEOs are steering their organizations through a multifaceted environment marked by financial uncertainties, technological advancements, and evolving societal needs. Drawing from recent surveys and reports, here are the top ten issues occupying the minds of nonprofit leaders:
1. Financial Instability and Revenue Uncertainty
Nonprofit organizations are grappling with financial challenges due to fluctuating funding sources. A report by the Urban Institute indicates that many leaders are concerned about financial instability stemming from uncertain revenues and rising expenses.
2. Workforce Shortages and Talent Retention
Staffing remains a critical issue, with 65% of nonprofits reporting difficulties in filling key positions. The Forvis Mazars 2025 State of the Nonprofit Sector Report highlights that 77% of organizations experienced increased demand for services, exacerbating workforce challenges.
3. Increased Demand for Services
The same Forvis Mazars report notes that 77% of nonprofits have seen a surge in demand for their programs and services, straining existing resources and capacities.
4. Technological Adaptation and Digital Transformation
Embracing technology is essential, yet challenging. The 2025 Nonprofit Technology Impact Report reveals that many organizations struggle with outdated systems, hindering real-time data access and efficient decision-making.
5. Donor Engagement and Retention
Maintaining donor relationships is paramount. The 2025 Fundraising Outlook Report emphasizes that 98% of nonprofits are focusing on donor acquisition, while 95% prioritize retention strategies to ensure sustainable growth.
6. Regulatory Compliance and Governance
Navigating complex regulatory landscapes is a pressing concern. Nonprofit leaders must stay abreast of changing laws and ensure robust governance practices to maintain public trust and compliance.
7. Leadership Burnout and Succession Planning
The sector faces a leadership turnover crisis, with many executives experiencing burnout. Spelman and Johnson report that nonprofit leaders are contending with financial challenges and the stress of fundraising, leading to increased attrition.
8. Equity, Diversity, and Inclusion (EDI) Initiatives Under Scrutiny
Advancing EDI remains a priority. However, recent federal actions have introduced challenges. Executive Orders 14151 and 14173, signed in January 2025, have led to the termination of DEI-related mandates and programs within federal agencies. This has resulted in funding freezes and grant cancellations for nonprofits engaged in DEI initiatives. Organizations are now compelled to reassess their programs to ensure compliance while striving to uphold their commitment to diversity and inclusion. For a detailed legal analysis, see NALA’s March 2025 report on Executive Orders 14151 and 14173.
9. Public Trust and Transparency
Maintaining public trust is crucial. High-profile cases of mismanagement, such as the San Francisco Parks Alliance’s misuse of funds, underscore the importance of transparency and accountability in nonprofit operations.
10. Political and Economic Uncertainty
Policy changes and economic shifts pose significant risks. The Conference Board’s C-Suite Outlook 2025 notes that 46% of CEOs globally identify economic downturns as a high-impact issue, reflecting widespread concern about the future economic landscape.
Conclusion
Nonprofit CEOs in 2025 are navigating a complex array of challenges, from financial instability to technological adaptation. Addressing these concerns requires strategic planning, investment in technology, and a steadfast commitment to mission-driven leadership.
Author: John S. Morlu II, CPA is the CEO & Chief Strategist of JS Morlu, a globally acclaimed public accounting and management consulting powerhouse.
Through cutting-edge technology and data-driven strategy, JS Morlu helps organizations operate with clarity, control, and compliance.
– ReckSoft (www.recksoft.com ): AI-powered reconciliation for nonprofit and donor accounting
– FinovatePro (www.finovatepro.com ): Cloud accounting for donor-driven missions
– Fixaars (www.fixaars.com ): Empowering nonprofits with maintenance and repair logistics
