Standing Firm on Shifting Sands
How Vermont's Nonprofits Are Navigating a Changing Landscape
Over the past six months, I have had the privilege of working closely with two remarkable nonprofit organizations here in Vermont. One a small, community-rooted operation and the other a well-established, statewide institution with decades of service behind it. Different in scale, similar in heart. And both are feeling the ground shifting like sands beneath their feet.
That image of shifting sands has stayed with me. Because what these organizations are navigating right now is not a single storm or a predictable tide. It is something more unsettling: a landscape where the rules, the resources, and the relationships that once provided stable footing are all in motion at once. And yet, in both cases, I have watched dedicated leaders and staff members adapt, innovate, and press forward with quiet determination. That resilience deserves to be acknowledged and understood.
The landscape has not become less meaningful. If anything, the work these organizations do matters more now than ever.
The Ground Has Shifted. The Mission Has Not.
Here is what I have observed firsthand: funding, for these two organizations, has been reasonably consistent. Grants have continued to come in. Donations have held. But "consistent" and "enough" are two very different things, and the gap between them has grown wider as the cost of doing business in Vermont has climbed steadily upward.
Staffing, utilities, technology, compliance, and facilities; the operating costs that keep any organization running have risen sharply. Vermont has one of the higher costs of living in the northeastern United States, and nonprofits are not immune to those pressures. The result is a quiet squeeze: revenue that looks stable on paper, but purchasing power that is eroding in practice. Programs that once ran lean are now running on fumes. Staff who are mission-driven and underpaid are being asked to absorb more and more.
This is the paradox of the modern nonprofit: demand for services grows while the capacity to deliver them tightens. And when you are a statewide organization with obligations across every corner of Vermont, that tightening is felt everywhere.
Turning to Montpelier: The Case for Legislative Support
It is no surprise, then, that both organizations I have worked with are increasingly looking to the Vermont Legislature for relief. This is not a new instinct - advocacy has always been part of the nonprofit playbook but the urgency is new. What was once a long-term strategy has become a near-term necessity.
The conversations happening in Montpelier matter enormously to Vermont's nonprofit sector. Proposals around workforce support, indirect cost reimbursement, and state-level funding stabilization could make a meaningful difference for organizations that are stretched thin. Vermont's nonprofits are not simply service providers, they are employers, community anchors, and in many cases the primary safety net for vulnerable populations. Supporting them is not charity. It is infrastructure investment.
I am encouraged by the engagement I have seen from legislators who understand this. The relationship between the nonprofit sector and state government in Vermont has historically been collaborative, and there is reason to believe that tradition will hold. But it will require clear, unified voices from the sector and the advocacy work happening right now is critical.
Supporting Vermont's nonprofits is not charity. It is infrastructure investment.
A National Picture: Headwinds from Washington
Vermont's challenges do not exist in a vacuum. Across the country, the nonprofit sector is contending with a federal landscape that has changed dramatically since January 2025. The Trump administration's push to reduce federal spending — carried out in large part through the Department of Government Efficiency, or DOGE has created significant disruption for organizations that rely on federal grants and contracts.
According to research from the Urban Institute's 2025 National Survey of Nonprofit Trends and Impacts, roughly one in three nonprofits nationwide reported experiencing federal, state, or local government funding disruptions in the first half of 2025. Those organizations were significantly more likely to report reductions in staff, programming, and future hiring. Perhaps more notably, even nonprofits that do not receive direct government funding reported that these disruptions have altered the broader philanthropic landscape, making private fundraising more competitive and uncertain.
The sectors hit hardest have been education, health, and human services precisely the areas where Vermont's nonprofits do some of their most essential work. Larger organizations with greater exposure to federal funding streams have faced the sharpest disruptions. But smaller organizations have not been spared either, particularly those that relied on intermediary grants — funding channeled through larger nonprofits to smaller community groups — which have been significantly curtailed across the country.
The picture is challenging. But it is not without silver linings, and it is far from the end of the story.
The Horizon: What Thriving Looks Like from Here
I want to be clear about something: the organizations I have been working with are not in crisis. They are under pressure, yes. But they are also clear-eyed, creative, and committed. That combination of realism plus resilience is exactly what will carry the best nonprofits through this period and into a stronger future.
Diversified funding will become non-negotiable. The organizations that weather this period well will be those that have deliberately reduced their dependence on any single funding source neither federal, state, or philanthropic. Building a broader base of community support, earned revenue, and individual giving is not just good strategy; it is survival planning. Vermont communities tend to be deeply invested in their local organizations, and there is real potential to deepen those relationships.
Collaboration will replace competition. Vermont is a small state, and its nonprofit ecosystem reflects that. There is growing recognition that organizations doing similar work are better served by partnering than by competing for the same limited pool of resources. Shared back-office functions, joint programming, and coordinated advocacy are all areas where the sector can gain meaningful ground.
Advocacy will be amplified. The turn toward legislative engagement is not a sign of weakness, it is a sign of maturity. The most effective nonprofits of the coming years will be those that understand policy, engage with it strategically, and make the case for their communities with both data and compelling stories. Vermont's Legislature has shown it is willing to listen. The nonprofit sector needs to keep showing up.
Technology and efficiency will unlock capacity. One of the more hopeful trends I have observed is the growing willingness of nonprofit leaders to embrace tools that reduce administrative burden and extend their reach. Whether it is streamlined donor management, utilization of technological partnerships or remote program delivery, there are real opportunities to do more with the same resources and leaders who lean into that will have a genuine advantage.
Mission clarity will be a competitive edge. In a constrained environment, organizations with sharp, well-communicated missions will attract both funding and talent more effectively. Donors and funders are becoming more discerning, and that is ultimately healthy for the sector. It rewards organizations that can articulate what they do, who they serve, and why it matters — simply and compellingly.
Resilience is not the absence of difficulty. It is the decision to keep moving forward anyway.
At Keehar Group, we believe that the organizations doing the most good in our communities deserve the best possible strategic support. Whether you are navigating a funding transition, planning your next advocacy push, or simply trying to build a more sustainable operating model, we are here to help you find your footing and your forward path.
The ground may be shifting. But there is solid ground ahead.
Best for Now,
Amanda
