Chasm Grows between Funder and Nonprofit Perceptions of Crisis - with Elisha Smith Arrillaga, Center for Effective Philanthropy
In this episode, you’ll get a clear-eyed look at the newest national data on nonprofit stability—and what it means for your organization, your funding strategy, your workforce or your grantees’ workforce.
While you're here, we invite you to register for Fund the People’s next webinar and live podcast recording on March 12, 2026. We'll explore Staff Operating Support (SOS), a new kind of funding to support the nonprofit workforce through this new kind of crisis. We'll define SOS funding, and get insights and critiques from a panel of nonprofits and funders.(https://us02web.zoom.us/meeting/register/cqkGKIweTlmlelqYgpRIeQ#/registration)
Today's episode is the latest installment in our Defend Nonprofits, Defend Democracy Series, and the 1st-ever 'live recording' of Fund the People Podcast!
Drawing on brand-new research from the Center for Effective Philanthropy (CEP), this episode shares data on the painful impact of the Trump Administration’s War on Charity: Nearly 70% of nonprofits are facing decreased funding while demand for services rises. More than half are concerned about closure or merger. And there’s a 40-point perception gap between funders and nonprofits about how well funders understand grantee challenges.
Host Rusty Stahl is joined by CEP’s Vice President of Research, Elisha Smith Arrillaga, to explore:
📊 The headline findings from CEP’s newest “State of Nonprofits” report
🔍 The widening disconnect between funders and nonprofit leaders
🧠 What nonprofits say they actually need beyond grant dollars
⚖️ How political targeting of the entire nonprofit sector changes the stakes
💬 Live poll results from nonprofit leaders, funders, and capacity builders
This episode offers data, context, and practical insight to help you navigate mounting pressure—and consider how philanthropy can move from reactive to proactive support.
Our Guest: Elisha Smith Arrillaga, Ph.D. manages CEP’s Research team, leading the creation, development, analysis, and release of research projects and initiatives relevant to the philanthropic sector’s most pressing issues. Prior to CEP, Dr. Smith Arrillaga was a faculty fellow and professor of practice in philanthropy and education policy at the University of Texas. She served as executive director of several national and state level nonprofits, including the Dana Center, a national center on math and science education equity.
Related Episodes:
- Defend Nonprofits, Defend Democracy Series Spotify Playlist
- How Funders Can Fight Nonprofit Burnout, Not Fuel It — with Elisha Smith Arrillaga, Center for Effective Philanthropy (S8:E6, October 29, 2025)
- Do Funders Understand the Nonprofit Burnout Crisis? – with Elisha Smith Arrillaga, Center for Effective Philanthropy (S7:E1, November 13, 2024)
- Understanding Funders’ Blindspots - with Phil Buchanan and Grace Nicolette, Center for Effective Philanthropy (S1:E7, November 13, 2020)
Resources & Links Discussed:
A Sector in Crisis Report (https://cep.org/report-backpacks/a-sector-in-crisis-how-u-s-nonprofits-and-foundations-are-responding-to-threats/?section=intro)
A Sector in Crisis Board Book Insert (2-pages) (https://cep.org/wp-content/uploads/2026/01/A_Sector_in_Crisis-2-pager_FNL.pdf)
Video of CEP's own webinar on their report "A Sector in Crisis", (February 19, 2026, https://youtu.be/-F9ptl8NB-M?si=AlevsCHRivpPJVUq)
Video of CEP conference plenary on this research (November 2025, https://www.youtube.com/watch?v=ZEKo9C--foU&t=7s)
National Council of Nonprofits (https://www.councilofnonprofits.org)
Defend Nonprofits, Defend Democracy Series Playlist on Spotify
Navigating Away From the Overhead Myth, write-in campaign to Charity Navigator (https://docs.google.com/document/d/1ULw5tJgyRFw4ZJbn-SiFm9jVcL-2_JnrCT1UUOXLiXY/edit?usp=sharing)
Fund the People Premium Podcast on Patreon (https://patreon.com/fundthepeople)
