2025 Nonprofit Leadership Report Reveals Innovation Strategies Amid Sector Challenges
New York, NY — Grassi, a leading provider of advisory, tax and accounting services, today released the key findings of its 2025 Nonprofit Leadership Report, highlighting how nonprofit leaders are embracing innovation and strategic action to navigate sector-wide pressures. The report of more than 200 nonprofit leaders reveals a climate of rising demand, increasing costs and a challenging economic outlook. In response, organizations are diversifying revenue sources, adopting new technologies and strengthening governance and succession planning to sustain their missions.
“This year’s leadership report highlights the remarkable resilience of nonprofits, as leaders take proactive steps to innovate and strengthen their missions,” said David M. Rottkamp, Partner and Nonprofit Practice Leader at Grassi. “These adaptable leaders are reimagining their strategies and applying innovative approaches to financial management, technology and leadership development to navigate uncertainty and build a stronger foundation.
Key findings from the 2025 Nonprofit Leadership Report include:
- Funding shifts drive new revenue strategies: Among organizations receiving federal funding, “significant reductions” were cited twice as often as “significant increases,” prompting organizations to explore new strategies for expanding earned income, building reserves, fundraising and pursuing grants.
- Workforce challenges accelerate AI adoption: Organizations are responding to retention challenges (58%) and rising labor costs (51%) through technological efficiencies that improve productivity. AI adoption surged from 31% to 48%, with another 19% planning implementation within 12 months.
- Engaged boards strengthen decision-making: Highly engaged boards are six times more likely to have excellent financial understanding and four times more likely to understand emerging technological trends. However, only 28% of boards are “highly engaged,” representing a significant opportunity for governance improvement.
- Leadership places greater focus on continuity: Although leaders increasingly recognize succession planning as essential for maintaining service delivery, nearly 10% of organizations have no succession plan in place. Among those who do have plans, only about half have identified successors for key roles.
- Digital growth heightens urgency for stronger cybersecurity: Only 38% of nonprofits feel “very confident” in their ability to protect sensitive data as technology adoption accelerates. To keep pace with innovation, organizations are implementing dual-factor authentication, providing regular staff training and outsourcing cybersecurity functions.
Click here or below to access the full report, where you’ll find benchmarking insights and strategies to strengthen your organization’s mission.
Grassi’s Nonprofit advisors are available to help nonprofits strengthen their missions through operational efficiencies, risk management and financial planning. Contact David M. Rottkamp, Nonprofit Practice Leader and Partner, or a Grassi advisor to learn more.
