Adapting for a Sustainable Future Amid Funding Cuts

The nonprofit sector has always been fueled by people—passionate staff, dedicated volunteers, and community champions who show up to make a difference. Yet many nonprofits are struggling to keep those people motivated and engaged amid ongoing political upheaval. Making the situation even more complex? Burnout is on the rise, workforce shortages continue to strain capacity, volunteerism is declining and growing financial pressures from funding cuts.

Reduced AmeriCorps allocations and tightened grant opportunities are forcing many nonprofits to do more with less. For nonprofit employees, this often translates into heavier workloads, fewer resources, and uncertainty about job security. For volunteers, it can mean fewer support systems or structured roles. These financial realities are reshaping how nonprofits think about the future of work, pushing them to explore new models of retention, engagement, and sustainability—even with fewer resources.

Another major concern for nonprofits is turnover… it’s costly for any organization, but for nonprofit organizations, the stakes are even higher. When a nonprofit loses a skilled employee, it’s not just a matter of lost productivity and the costs associated with it. It can disrupt critical programs, weaken relationships with donors and community partners, and dilute institutional knowledge gained over the years. Not to mention that turnover can directly impact a nonprofit’s ability to deliver on its mission.

While all of these financial pressures make it harder to deliver programs, nonprofits across the country are working to ensure consistent, high-quality service and sustainable growth. Now is the time to rethink how your nonprofit structures work, retains talent, and engages supporters to sustain its mission.

Looking Ahead

The future of nonprofit work isn’t about returning to the “old normal.” It’s about building systems that sustain both people and missions in an era of financial uncertainty. As nonprofits continue adapting to these new challenges, many are looking for opportunities to strengthen their teams and reimage how work gets done. Hybrid and flexible work models can help organizations do more with less—offering employees the autonomy they need to balance demanding workloads while staying connected to their mission. At the same time, upskilling allows valuable employees the opportunity to develop current skill sets so they can continue to advance within the organization. And while volunteer engagement is also evolving, organizations who haven’t already, can introduce virtual or skills-based opportunities that allow people to contribute their time and expertise in other meaningful ways.

By embracing innovation and prioritizing their people, nonprofits can build more resilient, adaptive workplaces—ready to meet both today’s challenges and tomorrow’s possibilities.

Doing More with Less: Hybrid Work

Hybrid models allow organizations to expand their talent pool, reduce turnover, and offer employees a healthier work–life balance—all critical benefits when budgets are tight.

In fact, while some nonprofits have returned to fully in-person operations, it might be worth reconsidering whether a hybrid approach could better serve both their budgets—and their teams. Amid ongoing funding cuts, hybrid work becomes more than just a convenience—it’s a strategic tool for sustainability. Organizations can reduce overhead costs like rent, utilities, and office supplies, freeing up funds for mission-critical programs and services. And, while limited funding can make it challenging to invest in the technology, training, and infrastructure needed to support hybrid work, forward-thinking nonprofits are finding creative solutions to make it possible—such as leveraging low-cost collaboration tools or forming partnerships to share resources.

By reducing reliance on in-person placements and embracing flexible hybrid solutions, nonprofits can continue to support staff and volunteers through uncertainty while continuing to deliver critical programs and driving long-term impact.

Upskilling and Career Growth

Though professional development is often the first line item cut when funding is uncertain, some organizations are tackling this by tapping into free learning platforms, peer-to-peer mentorships, or collaborative training programs with other nonprofits.

With funding cuts impacting the size of the nonprofit workforce, retaining top performers is more important than ever. It’s not just about keeping those people in place—it’s about helping them grow. Nonprofits that provide professional development opportunities are better positioned to retain staff for the long term. Upskilling opportunities—whether through management training, digital literacy programs, or cross-departmental learning—can increase program efficiency, fill critical skill gaps without adding new positions, and boost morale.

Upskilling doesn’t have to be expensive, but it does have to be intentional. Prioritizing learning and growth, even in small ways, can transform how employees see their role within the mission—turning everyday challenges into opportunities for innovation, engagement, and long-term sustainability.

The New Volunteer Model

Volunteerism is also evolving but nonprofits can continue advancing their mission by adjusting their approach to what the typical volunteer opportunity looks like. Many people can’t commit in the same way but they still want to contribute. In 2026, nonprofits can experiment with:

• Micro-volunteering: Bite-sized, short-term opportunities that allow volunteers to contribute without long-term commitment.
• Skills-based volunteering: Leveraging professional expertise in areas like IT, marketing, or finance that directly supports program efficiency and impact.
• Virtual volunteering: Remote participation allows engagement from a wider community, sustaining service delivery when in-person support is limited.

It’s true that funding cuts reduce the ability to invest in volunteer coordinators and support programs, which risks making it even harder to keep volunteers engaged. The organizations that will succeed are those that adjust and recognize the volunteer role as vital to sustainability and prioritize engagement—even with lean resources. Next year try tracking volunteer contributions to demonstrate program capacity and attract additional supporters or even more funding partners.

While funding cuts will continue to impact staffing, training, and volunteer support—they’re also pushing nonprofits to be innovative in how they work, lead, and engage communities.

By embracing hybrid models, investing in growth, and reimagining volunteer engagement, nonprofits can turn today’s challenges into opportunities for resilience. The sector’s greatest asset will always be its people. And with the right strategies in place, nonprofits can find balance—ensuring staff and volunteers remain inspired to create impact in the communities that need it most.

UST Workforce Solutions supports over 2,200 nonprofits just like yours. To learn more about UST’s HR and savings solutions, complete your no-obligation savings analysis today.