Nonprofit leaders are generally feeling positive about their missions, according to a new survey, though many are keeping an eye on partnerships and mergers to remain sustainable.

The 2025 Nonprofit Standards Benchmarking Report [PDF], released last week and conducted by the consultancy BDO, is based on a survey of 250 leaders at charities, colleges and universities, NGOs, foundations, and other groups. The survey was conducted in May and June 2025.

Despite economic and political headwinds, most respondents said their organizations are financially strong, with 86 percent reporting revenue increases in the past year. Leaders say they intend to use that revenue to grow, with 69 percent saying they plan to expand program areas, and 74 percent saying they intend to increase their technology spending. 

“Organizations seeking to maintain their financial momentum understand that technology investments can provide the foundation for sustained growth,” the report said. “The right tools can simultaneously improve operational efficiency and produce actionable insights for future decision-making.”

But large proportions of respondents said they found it difficult to face current challenges alone. In the face of cuts in federal funding—often to grants that many nonprofits have traditionally relied on—nonprofit leaders are pursuing a variety of approaches. In the past year, 34 percent of respondents said they’ve pursued a strategic partnership with a for-profit organization. Meanwhile, 19 percent of organizations said they’ve merged with a similar nonprofit in the past year, and 51 percent said they’re very or somewhat likely to do so in the next year. 

The report suggests that mergers are still seen as a last-resort option, however. “Nonprofits favor strategic partnerships over mergers by over 10 percentage points, a strategy that bolsters resilience while preserving organizational autonomy and the flexibility to adapt to changing conditions,” it says. 

Nearly all (96 percent) of respondents said that changes in federal policies and regulations have affected their organizations in some way. The most common impacts relate to changes in compliance requirements, the “rescoping or descoping of programs,” funding delays and freezes, payment delays, and grant or contract terminations.

Nonprofits have taken a range of steps in response. More than half (53 percent) say they’ve adjusted their strategic plans, while substantial percentages of organizations have reprioritized programs (42 percent), consolidated operations (37 percent) or sought alternative funding sources (36 percent).

The report is generally approving of the proactive approach that nonprofits have taken in response to these challenges, but notes that navigating change requires the close attention of leaders to be managed successfully.

“Program expansion, new partnerships, and technology investments can be a lot to take on at once,” the report noted. “For organizations to successfully manage this load, robust change management processes must be a core part of any new strategy, not just an occasional necessity.”

 “The sector adapted and evolved during COVID-19 and built muscles of efficiency,” said Andrea Espinola Wilson, managing principal and co-leader of BDO’s Nonprofit & Education practice, in a statement about the report. “Now those lessons are being put to the test.”