NJBIA Webinar: Nonprofits Look to Navigate an Uncertain Environment

By Jim Pytell, Managing Editor On Jul 23, 2025

Nonprofits across New Jersey are currently feeling a lot of angst given the level of uncertainty surrounding a plethora of executive orders and proclamations – including funding cuts – under the Trump administration, many of which could have major impacts on the nonprofit sector.  

New Jersey is currently home to more than 41,000 501(c)(3) organizations that employ 340,000 people — nearly 10% of the state’s private workforce — spending more than $56 billion annually and enlisting the aid of 1.9 million volunteers.

New regulations, shifting tax policies, and funding uncertainties make it harder to plan, secure resources, and advocate effectively, all of which are key elements for these businesses to operate effectively.

In total, President Donald Trump has signed 166 executive orders and 71 proclamations in the first six months of his term.

Doug Schoenberger, government affairs specialist at the New Jersey Center for Nonprofits, said that the executive orders themselves aren’t necessarily surprising, but the nature in which they have been implemented has created a challenging environment.

“The surprise factor here wasn’t that this was going to happen, it was much more around how many EOs, how quickly they would be put out, and how broad they would be,” Schoenberger said at a virtual meeting hosted by NJBIA exploring the impact of the Trump administration on nonprofits.

According to the New Jersey Center for Nonprofits’ Trends and Outlook 2025 Survey, while 76% of organizations expect demand for their services to rise in the coming year and 78% are projecting increased expenses, only 35% expect that their funding will increase.

Nonprofits’ perceptions of their own organizations’ circumstances and their outlook for the coming year both plummeted, with only one-third (33%) of respondents saying that their organizations’ overall circumstances were better than one year ago, down from 56% in 2024, and the worst since the beginning of the COVID pandemic in 2020. Their outlook for 2025 was similarly concerning, with only 34% predicting their circumstances would be better one year from now, 15% predicting they would be worse, and 42% uncertain about their prospects.

This comes with the backdrop of continued threats of federal funding freezes, such as the freeze earlier in the year by the Trump administration that put a temporary pause on all federal grants and financial assistance to nonprofits and NGOs, causing widespread disruption in service delivery, payroll, and operations. While the courts later blocked the freeze, and funds were theoretically restored, delays and a lack of clarity continue to undermine stability throughout the sector.

Schoenberger pointed out that even short-term disruptions could cascade into lost services and staff reductions, which could negatively impact the lives of those who rely on charitable nonprofit services.

He suggested that nonprofits with federal grants and contracts, especially those providing diversity, equity, and inclusion trainings and programs to or in partnership with the federal government, or work in immigration, LGBTQ+ rights, or environmental protection, should review their programs and contract language as it pertains to the various EOs.

Schoenberger added that such operational preparedness is important. Nonprofits can help themselves by conducting internal audits to identify at-risk funding, review grant provisions, and integrate contractual clauses addressing funding uncertainty. 

Another strategy is to actively expand donor networks and target private philanthropy to reduce dependence on federal support. This diversification of funding is key, especially in today’s environment.

“Get back to building a relationship with your funders,” Schoenberger said. “It sounds simple, but explaining to them specifically what is going to happen if your funding stays at the level it is at, is important. Get your funders involved and tell your story.” 

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