Philanthropic Advisors Can Help Donors Navigate Uncertain Times

It’s only April, but “uncertainty” might already be the most-used word of 2025. 

Charities across the U.S. are navigating an uncertain funding landscape, waiting to see how federal funding will change in response to executive orders and shifting policies. Additionally, economic uncertainty has many in the charitable sector concerned about rising operational costs and wondering whether donations will continue amid stock market volatility.

Your news feed is likely dotted with stories about charities affected by decisions made in Washington, D.C. Many organizations have already experienced reductions in anticipated government funding, forcing some to shut down programs or scale back their services.

With updates coming rapidly, making informed decisions about charitable giving can feel overwhelming.

Fortunately, you don’t have to manage this uncertainty on your own. Community Foundation staff connect with nonprofit leaders every day to understand their current challenges and future outlook. If you have questions about a specific charity or cause, a philanthropic advisor can directly engage with organizations to hear first-hand what they need from their supporters.

We know that changes in federal funding levels will likely affect the charities you support. Data from Candid and the Urban Institute underscore just how critical federal funding is for charities in the U.S.

• Two-thirds of public charities receive either government grants or contracts.
• The median nonprofit receiving government grants operates with a budget surplus of 9%, but without government grants, this plunges to a 13% deficit.
• At least half of government grantees in all subsectors would face a deficit without government grants. Human services is the most vulnerable subsector (71% would face a deficit), followed by health organizations (70%) and education organizations (68%).

Here’s a snapshot of the government funding landscape for our region’s nonprofits based on 2021 IRS Form 990 data— the most recent complete dataset available through the National Center for Charitable Statistics, organized by the Urban Institute.

Government Funding for Missouri Nonprofits

• Nonprofits based in Missouri received $4 billion in government grants in 2021.
  • Jackson County: 322 organizations received $724 million
  • Clay County: 37 organizations received $22 million
  • Platte County: 24 organizations received $33 million
• 68% of government grantees would be in a budget deficit without government grants.

Government Funding for Kansas Nonprofits

• Nonprofits based in Kansas received $1 billion in government grants in 2021.
  • Johnson County: 107 organizations received $93 million
  • Wyandotte County: 43 organizations received $49 million
• 70% of government grantees would be in a budget deficit without government grants.

You can use the Urban Institute’s data visualization tool to explore other states, counties or congressional districts. 

As always, our philanthropic advisors are here to help Greater Kansas City Community Foundation donors access and interpret the data most relevant to their giving strategies. Contact us with any questions or research requests. We can provide guidance, insights and best practices, so you can give confidently during this uncertain season.

Authored by: Whitney Hosty, Vice President of Philanthropic Services