The newly released State of the Sector Report found nearly half of local nonprofits (47%) expressed concern about the future of government funding, while more than half (51.5%) reported having less than six months of reserves—a sharp increase from last year.

The Yolo Community Foundation reports out on these findings and more in the 2025 State of the Sector report. The report, made possible by a grant from the Teichert Foundation, highlights pressing concerns such as shrinking financial reserves, rising expenses, and uncertainty around government funding. The report is available at https://bit.ly/YCFStateoftheSector2025.

The report provides an extensive overview of the Yolo County nonprofit landscape, including data on revenue and expense changes, nonprofit economic projections for 2025, staffing and volunteer trends, and a thorough description of the significant needs and challenges of our Yolo nonprofits, and what they are concerned about for the populations they serve.

Some key findings include:

47% of nonprofits surveyed are concerned about government funding and potential impacts on their revenue streams for 2025. This includes the ending of pandemic-era funds as well as potential funding freezes of government funds.

Reserves are shrinking, with 51.5% of organizations reporting less than 6 months of reserves this year compared to 29% in 2024.

Similar to last year, nonprofits reported that growth in expenses outpaced growth in revenues. Nonprofits anticipate this trend to continue through 2025.

40% of nonprofits reported that if they had additional funding, they would allocate it towards hiring more program staff, showing the increased need from the communities they serve and the need to build capacity within their organizations.

Staffing has stabilized since COVID-19, with 59% of organizations reporting staffing has stayed the same compared to last year and 30% reported increases.

This year’s report focuses on sustainability and how a sustainable nonprofit is one that can provide lasting impact to the communities it serves.

There continues to be an underrepresentation of the BIPOC community in local nonprofit leadership and nonprofit boards despite Yolo County’s population diversity.

Financial constraints are limiting the nonprofit sector. Many nonprofits are anticipating a reduction in government funding, as well as individual donor contributions. This could have lasting ripple effects on nonprofits’ ability to sustain critical programs.

Yolo County nonprofits need sustainability for staff and volunteers. Executive directors reported high levels of burnout among staff and volunteers and are looking to implement strategies to build capacity.

To read the full report, including the rest of the call to action, visit https://bit.ly/YCFStateoftheSector2025.