Rethinking how nonprofits work in 2025
In Washington, D.C., three food banks may operate within blocks of each other. Each struggle to find staff, secure funding and reach everyone who needs help. Just blocks away, countless people live in tent communities, many unaware of available services. This scenario plays out in cities across America, where good intentions often lead to duplicated efforts rather than maximum impact.
But some nonprofits are finding better ways to work. In D.C., one poverty-fighting organization recently joined forces with two similar groups. Instead of competing for the same resources, they now share staff, coordinate service delivery and reach more people than they could alone.
Recent studies show that collaboration among nonprofit organizations has measurable impacts on outcomes. Approximately 73% of collaborations examined in a recent study demonstrated evidence of success, including dramatic expansions in service, increases in funding and improvements in program outcomes.
This shift from competition to collaboration highlights a growing trend in how nonprofit leaders approach their work and is happening as economic pressures mount.
Operating costs are rising, and staffing shortages persist across the sector. Yet something unexpected happens when markets decline — charitable giving typically increases. The Giving Institute reports Americans donated $557 billion in 2023. The challenge isn’t a lack of resources but finding smarter ways to use them.
Rather than working in isolation, nonprofit leaders can meet regularly to share ideas and resources. These conversations spark new partnerships that can help each organization serve their community better. Nonprofits can expand their reach significantly without increasing overhead by sharing resources with similar organizations.
Reimagining service through technology and talent
Technology can offer new solutions to old problems. A case manager who used to spend hours each day writing detailed notes about client visits to tent communities — time that could have been spent helping more people — can now use AI tools to transcribe and summarize these conversations automatically, cutting paperwork time in half. Other organizations can use AI to streamline fundraising and program management, freeing up staff to focus on direct service.
But technology alone can’t solve everything. Millions of Americans lack reliable internet access, making it hard to find and connect with available services. Around 11.5 million (8.8%) of U.S. households don’t have home internet, and 4.3% don’t have a computer. Smart nonprofits are adapting by meeting people where they are, partnering with libraries, schools and community groups to spread the word about their services. Some organizations are looking to Generation Z for fresh ideas about communication and community engagement, recognizing that traditional outreach methods may no longer work.
The workforce itself is changing too. Some organizations have switched to four-day workweeks, finding it helps attract and keep talented staff. Others have outsourced entire departments — finance, HR, IT — to specialized partners, reducing costs while improving service quality. One human services organization cut administrative costs by 30% through strategic outsourcing, putting those savings directly into programs.
Virtual engagement continues to grow, with organizations finding ways to reach global audiences through online events and digital fundraising. But they’re also getting more creative about building trust locally. Instead of relying on polished annual reports, many now focus on direct community engagement and transparent impact communication.
These changes matter because nonprofits touch American life in countless ways, from professional associations advancing entire industries to local groups feeding hungry families. Of the 2,300 nonprofits in Wipfli’s network, nearly half focus on fighting poverty. Hundreds more serve as professional associations or operate nationally through local chapters, like Habitat for Humanity or the Girl Scouts.
The sector’s influence often remains invisible until you start looking for it — in the local food bank, the job training program, the museum or the faith-based organization down the street. In 2025, the most effective nonprofits won’t be those with the biggest budgets or longest histories. They’ll be the ones willing to question old habits, share resources and find creative ways to serve more people.
The work remains challenging, but organizations are discovering that when they shift from a scarcity mindset to one of abundance, new possibilities emerge. One plus one can equal 10 when nonprofits work together, share resources and focus on impact rather than individual success.
How Wipfli can help
In 2025, nonprofit organizations should look to balance mission-driven impact with operational innovation. The successful transition will require both deep sector understanding and innovative approaches to talent, technology and funding.
Wipfli can help. Our nonprofit industry experience and technology solutions can help organizations reimagine their operating models, implement AI-powered efficiency tools, build strategic partnerships and create sustainable funding strategies while maintaining mission focus. Learn more about our nonprofit services or contact us today.
