New Survey Finds Brooklyn Nonprofits Struggling to Keep Up with Rising Costs, Growing Demand, and Funding Cuts

Brooklyn Org survey reveals sharp cost increases, reduced funding, and high community need; more than half of nonprofits fear for their financial stability heading into 2026.

A new survey of 86 New York City-based nonprofits, 62 from Brooklyn, paints a sobering picture of the challenges facing the city’s nonprofit sector. The Brooklyn Backs Brooklyn – Nonprofit Survey (Fall 2025), conducted by Brooklyn Org, finds that while community needs have increased, most organizations are grappling with rising costs, federal government funding cuts, and overextended staff.

Over the past 12 months, 86% of nonprofits reported higher costs to provide services, with more than half experiencing increases of 10% or more compared to last year.

Meanwhile, 60% experienced cuts in government funding, with 42% reporting funding cuts of 20% or more. More than half of survey respondents said they are concerned about whether their organizations will be financially stable in 2026.

“Our survey makes clear that just as New Yorkers are struggling to make ends meet, the nonprofits that anchor our communities and provide vital services are being stretched to their limits,” said Jocelynne Rainey, President & CEO of Brooklyn Org. “These organizations are facing soaring demand even as government funding has been stripped away. The sector is being asked to do more than ever before, without the resources needed to sustain this vital work.”

Key Findings:

Costs and Demand Rising in Tandem

• 86% of nonprofits experienced increased costs in the last year; more than half reported increases of 10% or more compared to last year.
• 90% are reporting an increase in demand for services.

Cuts and Reductions Hit Programs and Staff

• 47% cut non-personnel expenses; 36% froze hiring.
• Two-thirds of respondents reported a decline in staff morale.
• Despite these challenges, 58% say they have maintained service quality.

Funding Shifts and Financial Uncertainty

• Nearly 41% saw decreases in individual donations.
• 55% are concerned about their finances and ability to meet their missions next year.
• More than half (53%) expanded services despite resource constraints.

Adapting to New Realities

• 71% have not adjusted operations or communications in response to state or federal DEI-related policy changes.
• 17% lost non-government funding due to such policies.

This survey reveals that nonprofits are doing more with less. Many detailed how they have adapted in the face of rising community needs by creating new programs for youth, seniors, and low-income residents, while deepening collaborations across neighborhoods. Examples include expanding Know Your Rights training for domestic violence survivors, launching programs for women and justice-impacted youth, and developing partnerships with local stakeholders. Yet nonprofit respondents to the survey noted having to rethink how to move forward with current programs as the funding landscape remains unstable.

Lorena Kourousias, Executive Director at Mixteca, and one of the survey respondents, said: “With public benefits shrinking and the political climate turning against immigrants, standing strong together is more important than ever. When we back Brooklyn, we back the immigrant families who keep this borough thriving. Mixteca remains rooted in that commitment: supporting, healing, and lifting our community every day.”

Robin Redmond, Executive Director at Flatbush Development Corporation said, “We cannot meet the high demand for services on a good day. With today’s climate – higher unemployment rates, inflation, looming changes to medical coverage and continued predatory landlord activities is creating a greater demand for our services.”

The findings underscore the critical need for increased government and philanthropic investment in local, community-based organizations that know their neighborhoods and residents best.