Insights

The New Funding Rush
How nonprofits are racing to adapt amid federal grant changes

Insights from Instrumentl's survey of 300+ grant-managing nonprofits about how they are impacted and responding to federal grant cancellations and their ripple effects across the nonprofit sector.

Instrumentl helps you with every stage of the grant lifecycle

Key findings

Nearly half of nonprofits lost public funding this year

47%

said they’ve lost federal, state, or local grant funding this year

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Majority of affected nonprofits are pivoting to private grants

8/10

are now diversifying into private & corporate grants to fill gaps

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Competition is about to heat up most in the private sector

70%

with 50%+ revenue from federal grants are diversifying to private grants

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What nonprofit leaders are saying

Real voices from our survey of 300+ organizations

Starting Point: Services for Victims of Domestic and Sexual Violence

Northeast

“I'm much more concerned about 2026 and 2027 when we really begin to feel the repercussions of these cuts. What our agency has experienced is the tip of the iceberg.”

Liz Stillman

Business and Grants Manager

Eureka College

Midwest

“One of our federal grants was terminated and then 'reinstated' suddenly. As such, there is a lot more hesitancy in applying for federal funds. We are still waiting on multiple grant notifications that were submitted last fiscal year."

Monica Coleman

Dir. of Foundation Relations and Grant Writing

Action Council of Monterey County

Southwest

“The number of grantees applying for grants from private organizations has been increasing exponentially, which has made us less visible to our regular sponsors and put us at a disadvantage."

Macarena Johnson

Development Manager

Live Event

Inside the Federal Funding Shakeup: How 300+ Nonprofits Are Adapting

October 22, 2025

1:00 PM ET / 10:00 AM PT

Zoom

What You'll Learn:

  • The top 5 fundraising strategies nonprofits are using right now to strengthen pipelines

  • Tips to prepare for federal grant opportunities in 2026

  • Key insights to stay competitive and compliant in today’s landscape

  • An exclusive first lookHow to identify better-fit grants using Instrumentl’s new & improved discovery algorithm

Featured Speakers

Rachel Werner, MPA, GPC, PMP

CEO, RBW Strategy, LLC

Fielding Jezreel, MSW, GPC

CEO of the Federal Grants Accelerator

Save My Seat - Free

Can't attend live? All registrants will receive a recording and supplementary materials after the event.

Behind the data

Understanding the methodology and context of our findings

The federal grants landscape has experienced unprecedented disruption in 2025, with policy shifts affecting funding streams across multiple sectors. Our comprehensive survey reveals how these changes are rippling through the nonprofit ecosystem, creating both immediate operational challenges and long-term strategic implications.

The data shows clear patterns in how organizations are weathering this storm. These insights provide crucial benchmarks for nonprofit leaders navigating an uncertain funding environment.

Survey Methodology

300+

Grant-managing orgs surveyed

Aug-Sep 2025

Timeframe

12

Sectors represented

Insights Report

Get the full report

Access the full report to understand how nonprofits are pivoting in light of federal funding uncertainties.

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Urgent strategic shifts

See why 92% of nonprofits are changing their grant strategies.

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Understand what's working

See how other nonprofits are shifting ahead of the new year.

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Build confidence in your plan

Navigate changing requirements with sector-specific guidance.

A blue book titled 'Adapting Amid Federal Grant Changes: What 300+ nonprofits are seeing in 2025' by Instrumentl.
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