Insights: The State of the Nonprofit Sector in Massachusetts
- nonprofitnetinfo
- 2 days ago
- 3 min read
In this installment of Insights, we discuss some key findings from the 2025 State of the Nonprofit Sector Survey by the Nonprofit Finance Fund, focusing on the results reported by nonprofits in Massachusetts. See Related Resources at the end to further explore the report.
Across the U.S. today, nonprofits employ about 10% of the private workforce and contribute $1.4 trillion annually to the economy. In Massachusetts, the sector is about 17% of the workforce (almost 550,000 workers), and approximately $118.8 billion in annual revenues.
Since 2009, the Nonprofit Finance Fund has periodically explored how this sector fared the prior year and what’s needed to secure the future. Its 2025 State of the Nonprofit Sector Survey included responses from 2,206 nonprofit organizations, of which 56 were in Massachusetts, who shared what FY 2024 looked like, and what they were bracing for looking forward.
While not a comprehensive sample of Massachusetts nonprofits, the survey provides a valuable perspective on some of the key issues and concerns facing nonprofits in the state, which in many cases parallel those of nonprofits around the country. Let’s dive into some of the findings.
Shared Challenges in the Nonprofit Sector in Massachusetts
Financial Concerns
Some of the top financial challenges nonprofits in Massachusetts reported related to raising unrestricted revenue, maintaining financial stability, and covering costs.
84% reported concern about their raising unrestricted revenue, indicating that currently half their total funding from grants and foundations is restricted.
82% were concerned about achieving long-term financial stability. Over two fifths reported a deficit in FY 2024, and just under half had 3 months or less of cash on hand.
80% cited concerns about raising funds to cover the full costs of programs and operations.
Rising Demand for Services
Meanwhile, only 60% of Massachusetts nonprofits reported being able to meet demand for their services in FY 2024, yet 89% anticipated an increase in that demand in FY 2025, with almost half (49%) expecting a significant increase.
Meeting the Need for Staffing & Benefits
Staff coverage and cost of living were top management challenges reported by respondents nationwide, including Massachusetts. Respondents from Massachusetts were concerned about employing enough staff to cover both programmatic work (86%) and operational/administrative work (76%), as well as the high cost of living where the organization is located (78%). In addition, only 46% reported that they could pay a living wage to full-time staff, and over a quarter (26%) did not offer health insurance.
Some Good News
Despite these pressures, nonprofits nationwide reported expanding programs and addressing shifting community needs in 2024. Almost two thirds of respondents across the U.S. expanded their programs or services. Half said they solicited and acted on community feedback to shape programs and services.
Recommendations for Nonprofits
If your organization is facing some of these same challenges, how can you most effectively move forward in 2026? The Nonprofit Finance Fund has the following recommendations.
Actively engage in planning to assess your current cash situation, develop different budget scenarios, and prepare and share your financial story.
Understand your organization’s full costs and make the community impact of dollars invested in your organization clear.
Support each other and operate as an interconnected ecosystem - building the power of your networks, sharing resources, and supporting each other as leaders.
You can learn more about how to manage your organization’s financial health, communicate your impact, and build partnerships in some of NPN’s recorded seminars, including:
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Harness the Power of Data to Tell an Impactful Story Joy Mosenfelder | Partnerships with Purpose Sharmon Lebby |
Related Resources
Below are links for exploring the NFF’s 2025 State of the Nonprofit Sector Survey Results in more depth, as well as interacting with some of the survey data.
Summary of National Findings from the Survey:
Recorded Webinar (YouTube video)
Slides from the Webinar (PDF)
Interactive Survey Analyzer Filter data from select survey questions by sector, geography, and budget size to see data that are most relevant to you.
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