Across Michigan, nonprofits are feeling the pressure as a wave of federal uncertainty under the new administration ripples through funding streams, partnerships, and long-term plans.
At the center of supporting organizations through navigating this storm is the
Michigan Nonprofit Association (MNA), led by president and CEO Kelley Kuhn.
“The biggest role that we have is to raise awareness about what's happening and the impact that it's having for nonprofits specifically,” Kuhn says. “And then, more importantly, how that trickles down, not just for nonprofits, but to the communities that nonprofits serve.”
The challenges began early in 2025, when several executive orders disrupted long-standing funding streams, sparking confusion and alarm as organizations lost access to resources they had already budgeted for—and were actively using—to fund vital services.
Some organizations had to make difficult choices overnight, even cutting long-established programs.
“For many of the organizations that were impacted, they were facing decisions of whether or not to pay their payroll or pay their bills,” Kuhn says. “Those were real decisions that in that moment, leaders in the sector were faced with because nonprofits operate at very small margins.”
She adds, “They have relied on these federal funds for decades to run the programming and services.”
Even as some funding resumes, nonprofits now face delays, new administrative hoops, and agency staff turnover.
Kuhn says nonprofits are “not able to connect with the people who we used to connect with because of some of the federal layoffs within the departments,” severing key relationships that helped them navigate these issues in the past.
As a result, organizations are now spending more time planning for uncertainty.
“Now we fast forward to future asks, for future expectations that dollars are going to come for programming, and that's where there's a lot of uncertainty right now,” Kuhn says. “What we find is our nonprofit leaders are spending much more time on contingency plans and less on their mission delivery.”
She adds that some nonprofits are also considering how current collaborations can be continued and strengthened.
In the face of so much uncertainty, nonprofit leaders are leaning on each other more than ever.
“I think that there's an increase in wanting to be in place and space with other leaders, so that you feel like you're not shepherding this or weathering this alone,” Kuhn says. “Make sure you're engaging your board. Make sure you're engaging other nonprofit leaders who can be supports in these moments as well.”
While the ripple effect is spreading to all nonprofit sectors, some of the earliest hits landed on equity-driven organizations. For example, organizations that support immigration were some of the first impacted by funding cuts, as well as the health and human service and education sectors.
“What we know is that there's lots of nonprofits that have a strong commitment to equity,” Kuhn says. “It's at the core of what they do. The threat to diversity, inclusion and equity is important because they really see it as a core part of why they do what they do.”
To support the sector, MNA is advancing advocacy, capacity-building, and narrative work, and even has a “
Navigating Federal Changes” page on its website. Additionally, through MNA’s “We Are 501c3” campaign, the organization is encouraging nonprofits to tell their stories.
“It's about amplifying the great work that nonprofits are doing and encouraging people that when they have data and a story to tell, they should be uplifting that,” Kuhn says.
Despite the headwinds, Kuhn believes unity is the sector’s greatest strength.
“If we continue to work together, which is another principle that we should lean on at this moment, I think the solutions lie within the collective power of the people who believe the work of the sector is important,” she says. “I think as long as we're unified and together in that, we can weather this.”
This story is part of the Nonprofit Journal Project, an initiative focused on nonprofit leaders and programs across Metro Detroit. This series is made possible with the generous support of our partners, the Ralph C. Wilson Jr. Foundation, Michigan Nonprofit Association and Co.act Detroit.