Highlights: State of our Sector 2026
It is no surprise that members reported a high level of impact; 70 percent of respondents have been negatively impacted by federal actions.
Revenue losses:
Expense increases
Revenue losses:
- Direct federal funding
- State or city funding supported by a federal program
- Private funding due to executive order restrictions
- Changing philanthropic priorities
Expense increases
- Increased financial pressure on clients/consumers
Voices from Our Sector
“Many of our clients were impacted by SNAP payment delays in November 2025,
compelling us to launch a fund to help provide emergency relief.”
“[Funds are constrained]... in ways we previously have not been limited by, for fear
of a lawsuit.”
“Mass Humanities, which has funded some of our work, is funded by the National
Endowment for the Arts, whose funds have been severely cut. So continued funding
of our projects is uncertain/at risk.”
“Executive orders have made us ineligible to apply for federal program support given our
priority population and mission, but we didn't have any funding to lose”
“Major donors and foundations have told us they have shifted their focus due to politics
or they have been impacted financially and can't donate to us at the same level”
“Our organization was impacted by partners who lost federal funding and therefore
could not provide the same type and volume of food to us.”
“Many of our clients were impacted by SNAP payment delays in November 2025,
compelling us to launch a fund to help provide emergency relief.”
“[Funds are constrained]... in ways we previously have not been limited by, for fear
of a lawsuit.”
“Mass Humanities, which has funded some of our work, is funded by the National
Endowment for the Arts, whose funds have been severely cut. So continued funding
of our projects is uncertain/at risk.”
“Executive orders have made us ineligible to apply for federal program support given our
priority population and mission, but we didn't have any funding to lose”
“Major donors and foundations have told us they have shifted their focus due to politics
or they have been impacted financially and can't donate to us at the same level”
“Our organization was impacted by partners who lost federal funding and therefore
could not provide the same type and volume of food to us.”
Demand for Services
|
|
It is not surprising that 88 percent of organizations report an increase in demand for their programs and services.
An organization's ability to meet demand is also being impacted: while 67 percent report "mostly" meeting demand, only 12 percent feel they are "fully" meeting it..
An organization's ability to meet demand is also being impacted: while 67 percent report "mostly" meeting demand, only 12 percent feel they are "fully" meeting it..
Operating Budget
The impacts of federal activity are compounded by existing challenges related to the financial health and capacity of Cambridge nonprofits. Most Cambridge-serving nonprofits have smaller budgets. Our data shows:
- 83% have budgets under $5 million.
- 46% have budgets under $1 million.
- Nearly 25% have budgets under $250,000.
Staffing & Capacity
What has happened with staffing over the last year?
Chart Legend:
Chart Legend:
- Red (Reduced Capacity): Staff turnover, hiring freezes, ending contracts, or layoffs.
- Green (Increased Capacity): Hiring new staff or contractors, increasing hours.
- Blue (Maintained Capacity): Retraining staff or utilizing volunteers.
Vacancies & Volunteers
Volunteers are a vital part of the "people power" for nonprofits: 89 percent of organizations use volunteers, and 63 percent say they "rely" on them—meaning they could not operate without them. For the first time, we asked about using volunteers to fill staffing gaps; 28 percent of organizations are currently using this strategy.
City as Partner and Funder
The city remains a significant funder of local nonprofits with 42 percent of respondents receiving funding from the City of Cambridge. The most frequently cited programs include:
- Youth Enrichment
- Child and Student Services
- Food Assistance
- Mental Health
- Performance, Event and Space Management
- Job and Workforce Training
- Digital and Public Access Services
- Health and Fitness Programs
Respondents noted that the city makes significant contributions through departmental grants and contracts. Some also noted recent improvements in the contracting process. Suggestions for improvement included calls for increased overall financial support, a greater focus on long-term funding versus pilot projects, and more consistent communication.
Space Needs & Collaboration
|
|
We asked about space needs for the first time this year, it was identified as a concern at our annual meeting and the city is now conducting its own assessment.
Additionally, we explored "shared professional services"—where two or more organizations use the same vendor for accounting, HR, or IT.
Additionally, we explored "shared professional services"—where two or more organizations use the same vendor for accounting, HR, or IT.
- 59% of organizations want to explore shared services further.
- Finance and accounting are the areas of highest interest.
Opportunities for Collaboration
In light of the current financial climate, there is more conversation in the nonprofit and philanthropic space about organizational mergers or program asset transfers (where organizations take on a program from another organization.)
We want to understand the degree to which Cambridge nonprofits are considering this as a strategy to either preserve or grow their services.
While most organizations are not yet actively pursuing these conversations, more are open to them in the future to increase community impact, operational efficiency and financial stability,. A few are currently exploring opportunities.
CNC is exploring how we can be a resource in this area. While a merger isn’t the right choice for every organization, it is a tool that can be used to preserve and expand critical programs. In times like these we should be exploring all options
These are the highlights from last year’s survey. We plan to release the full report in the spring.
We want to understand the degree to which Cambridge nonprofits are considering this as a strategy to either preserve or grow their services.
While most organizations are not yet actively pursuing these conversations, more are open to them in the future to increase community impact, operational efficiency and financial stability,. A few are currently exploring opportunities.
CNC is exploring how we can be a resource in this area. While a merger isn’t the right choice for every organization, it is a tool that can be used to preserve and expand critical programs. In times like these we should be exploring all options
These are the highlights from last year’s survey. We plan to release the full report in the spring.