BOSTON—November 5, 2025—The Bridgespan Group today released two complementary articles that shed light on how small and midsize US nonprofits raise and sustain the funding they need to achieve their missions. Together, the articles provide nonprofit leaders with actionable insights into the realities of nonprofit funding patterns and practical strategies for building resilience in uncertain times.

The first article, How Small and Midsize US Nonprofits Get Their Funding, presents new research showing that the majority of small and midsize nonprofits—like their larger peers—depend on a single dominant funding category for most of their revenue. Drawing on financial data from 175 organizations and interviews with nonprofit leaders, the analysis finds that roughly three-quarters of the organizations studied derive at least half of their income from one funding source such as government, foundation grants, or program service fees.

The second article, The Strengths Small and Midsize US Nonprofits Build on to Create Resilient Funding Strategies, explores how these organizations sustain and strengthen their funding strategies over time. Based on interviews with nonprofit leaders across the country, the piece identifies seven key organizational “assets” that contribute to resilience—from the fundraising leadership of executive directors to deep community roots, active board engagement, and a willingness to innovate and take calculated risks.

“Many small and midsize nonprofits worry that they should be diversifying across every possible funding category,” said Ali Kelley, a Bridgespan partner and coauthor of both pieces. “But our research shows that what really matters is focus—understanding your organization’s ‘natural match’ with funders and investing in the capabilities to pursue that strategy effectively.”

The research also emphasizes that smaller nonprofits often benefit from cultivating a secondary funding stream that complements their main source of revenue—helping them weather funding volatility, support new program areas, or prepare for growth.

“Resilient funding isn’t just about balance sheets,” said Naomi Senbet, Bridgespan senior manager and coauthor. “It’s about building on your organization’s strengths—leadership, relationships, and clarity of mission—to fund your work with confidence and purpose.”

Both articles are available now on Bridgespan.org:

• How Small and Midsize US Nonprofits Get Their Funding
• The Strengths Small and Midsize US Nonprofits Build on to Create Resilient Funding Strategies

###

About Bridgespan

The Bridgespan Group (www.bridgespan.org) is a global nonprofit that collaborates with social change organizations, philanthropists, and impact investors to make the world more equitable and just. Bridgespan’s services include strategy consulting and advising, sourcing and diligence, and leadership team support. We take what we learn from this work and build on it with original research, identifying best practices and innovative ideas to share with the social sector. We work from locations in Boston, Delhi, Johannesburg, Mumbai, New York, San Francisco, Singapore, and Washington, DC.