Insights: Massachusetts Nonprofit Trends and Directions
- 5 hours ago
- 2 min read
The Barr Foundation recently hosted a session to discuss the state of the nonprofit industry in Massachusetts. The conversation included findings from the latest National Survey of Nonprofit Trends and Impacts, a study the Urban Institute has conducted annually since 2021, and the perspectives of local nonprofit leaders and funders.
Trends in the Massachusetts Nonprofit Sector
Some of the key research findings from the Urban Institute study related to trends in the size of nonprofits, the state of reserves, and hiring plans.
The size of Massachusetts nonprofits is increasing. The percentage of nonprofits in the state with 50 or more full-time staff increased from 4% in 2019 to 12% in 2025. In the same period, nonprofits with no full-time staff dropped from 27% to 18%.
Funding sources are shifting. The number of nonprofits in the state receiving funding from community foundations rose from 50% to 63% from 2023 to 2025. Those receiving funding from donor-advised funds grew even more significantly, from 50% to 72%.
Hiring plans are flat. As of early 2026, 44% of Massachusetts nonprofits reported planning to hire new staff, similar to the percentage in early 2025 (45%). This number reflects a significant decrease from the 62% percent with plans to hire in late 2024.
Reserves are low. While the percentage of Massachusetts nonprofits with fewer than three months of reserves decreased from over half (52%) in 2025 to 41% in 2026, the total remains significant.
Implications for Your Massachusetts Nonprofit
In discussing what current trends mean for how your nonprofit might do things differently in the coming year and beyond, highlights of the discussion included how to tell your story, focus fundraising efforts, and address key knowledge gaps.
Shift toward strengths-based narratives. Build your story on strengths — what your communities have, know, and can do — rather than what they lack or need to overcome. Trabian Shorters' work was highlighted as transformative for reframing nonprofit narratives.
Focus fundraising on specific solutions, not only mission. To compete for shrinking philanthropic dollars, nonprofits must frame pitches around concrete solutions, not mission alone. Carving out solutions in key areas that others are not solving may mean extending your current partnerships and collaborations.
Reconsider young donor engagement. Building a base of recurring small gifts from younger donors is important for cultivating your nonprofit’s future funding base. Make sure your messaging addresses how these stakeholders want to get their information.
Understand DAFs. Many nonprofit leaders don't know what a donor-advised fund is. Ensure your organization can access this large potential funding pool.
Set aside time to upskill, such as in AI. Nonprofit leaders always don't make time for professional development. Continue to focus on building new skills, such as building AI literacy to improve efficiency and communications.
The ultimate message for the nonprofit community? Continue to pursue ways to equip organizations to be better problem solvers, not just better service providers, and to cultivate a mindset of fostering resilience now and for the years to come.
Related Links
BME Community (Trabian Shorters' organization)