Nonprofits embrace what’s next

As Arkansas nonprofits reflect on the past year and its ups and downs, a well-known saying often comes to mind: “This too shall pass.” It is a hopeful sentiment that many organizations are embracing after navigating the complexities of 2025.

In the first half of the year, the Urban Institute reports that approximately one-third of charitable organizations across the United States experienced disruptions in government funding. More than half lost a government grant or contract, faced temporary funding freezes or were subject to stop-work orders.

Here in Arkansas, we’ve witnessed how the fluctuating federal funding landscape has impacted local nonprofits striving to meet the growing needs of our communities with fewer and less predictable resources. However, alongside these challenges, we’ve also seen organizations find unique opportunities for hope and growth.

Will their perseverance extend in 2026?

I believe so — if nonprofits continue to invest in the core drivers of success like purpose, policy and innovation.

The turbulence of 2025 reinforced that periods of financial strain, even temporary ones, can push organizations into a reactive mindset. Entities’ short-term survival begins to overshadow long-term planning. In these moments, nonprofits maintaining a clarity of purpose is especially critical.

Organizations that clearly understand why and for whom they exist are better equipped to prioritize programs, communicate impact and maintain stakeholder trust. At Heart of Arkansas United Way, our mission — ensuring all in our community can thrive — is our guiding light, ensuring our investments, partnerships and even storytelling remain aligned with our core values.

Policy considerations are also an essential component of nonprofit sustainability. This year demonstrated that changes in funding structures, regulations and compliance requirements can significantly alter local organizations’ ability to deliver services. While nonprofits cannot control every external factor, they can be proactive and position themselves for adaptability. Through platforms like CEO roundtables, organizations have built relationships, shared vital information and formed partnerships to avoid service duplication, preserve much-needed resources and make more strategic decisions.

No matter the funding landscape, staying nimble is key to organizations’ long-term success. As the Forbes Nonprofit Council notes, entities must always be “testing, evolving, learning and adapting from a place of opportunity.”

That said, nonprofits’ transformation must be intentional, grounded in their purpose and informed by those they serve, including neighbors, volunteers and donors. If 2025 has taught us anything, it’s that organizations willing to pivot are often the most successful at responding to evolving community needs while maintaining sustainability.

Throughout this year, we’ve seen firsthand the pressures our state-based charitable organizations face. These unprecedented challenges have tested us, but they’ve also revealed our sector’s unwavering commitment to serving our neighbors. By identifying bright spots and leaning into our strengths, Arkansas nonprofits will continue to build long-term resilience in 2026 — and beyond.

Editor’s note: Mollie Palmer is the vice president of communication and engagement at Heart of Arkansas United Way in Little Rock. The opinions expressed are those of the author.