Report: Charity Funding Cuts Seen as Harmful, But Awareness Remains Low

According to research from BBB’s Give.org, fewer than one in three respondents (32%) were aware of reductions in federal funding for charities in 2025. Among those who were aware, 65% viewed the cuts as either somewhat or very negative.

The standards-based charity-evaluation group released the "Give.org Donor Trust Report: Public Awareness of Challenges Facing the Charitable Sector in 2025." The report, based on a survey of more than 1,500 U.S. adults, gauges public awareness of the challenges faced by the charitable sector in 2025, including federal funding cuts, new federal interpretations of diversity, equity, and inclusion (DEI), and the perceived politization of the sector.

“Federal funding cuts are widely seen as harmful by those who are aware of them. Unfortunately, overall public awareness remains limited,” said Bennett Weiner, President and CEO of BBB’s Give.org, “transparency in communicating these cuts could help strengthen public support for affected organizations, as our results suggest that most people recognize these reductions impact the most vulnerable and influence which types of causes can prosper.”

Other report highlights include:

• Only 9% of participants disagree with the statement “charities today are more involved in political issues than they were 10 years ago.”
• When asked to place themselves on a scale between two statements: on one end “Charities are primarily engaged in promoting social good causes rather than political agendas,” and on the other “Charities are primarily engaged in political agendas rather than promoting social good causes,” 24% of Boomers, compared to only 13% of Gen Alphas, believe charities are primarily focused on promoting social good causes rather than political agendas.
• Fewer than one in three respondents (32%) were aware of reductions in federal funding for charities in 2025. Younger participants were more likely to believe that charities received increased government funding during that year, with 43% of Gen Alphas, compared to 17% of Boomers, thinking government funding increased.
• Among respondents aware of federal funding cuts for charities in 2025, most (65%) viewed these reductions as either somewhat negative (23%) or very negative (43%).
• 62% agree the significant federal funding cuts for charities impact the most vulnerable populations in the U.S., and 60% agree that these cuts will change the type of causes that can endure or thrive.
• Among those aware of changes in federal DEI policies affecting charities, 53% viewed these changes negatively and 44% viewed them positively.

Generational age ranges used in the Give.org Donor Trust Report: Generation Alpha (18-20), Generation Z (21-27), Millennial (28-44) Generation X (45-60) Boomers (61-79), Matures (80 and above).

BBB’s Give.org urges donors to give thoughtfully by taking the time to investigate charities before making a donation and to visit Give.org to verify if a charity meets the 20 BBB Standards for Charity Accountability.

Access "Give.org Donor Trust Report: Public Awareness of Challenges Facing the Charitable Sector in 2025" here.

Source: BBB Wise Giving Alliance

The preceding press release was provided by a company unaffiliated with NonProfit PRO. The views expressed within may not directly reflect the thoughts or opinions of the staff of NonProfit PRO.