Louisiana nonprofits report financial challenges in statewide survey

Louisiana nonprofits report financial challenges in statewide survey

SHREVEPORT - Nonprofits from across Louisiana reported that financial stability and funding sources were their greatest challenges in a statewide survey conducted by LSU Shreveport's Institute for Nonprofit Administration and Research (INAR).

Seventy-one percent of nonprofits surveyed said that financial stability and funding sources were their greatest challenges.

The survey captured 148 responses that included small, medium, and large nonprofits across sectors like arts/culture/humanities, human services, education and religion-related sectors.

The 2025 Louisiana Nonprofit Policy Impact Survey recorded organization's answers in November and December this past year, and the study was published in August.

"Louisiana nonprofit organizations continue to operate in an environment shaped by shifting federal and state policies, administrative system changes, and funding uncertainty," the report concluded. "Key findings indicate that federal funding disruptions, while limited in prevalence, had substantial consequences for affected organizations.

"State-level executive orders and policy changes were more widely reported, and financial sustainability emerged as the dominant sector-wide concern. Nonprofits primarily seek stability, clarity, and capacity-building rather than expansion."

Two-thirds of respondents reported either no direct impact from federal and state policy changes or that the organization was unsure of any direct impact.

Of the one-third of organizations that reported a direct impact, the study found that these impacts were "often severe and compounding, including funding disruptions, administrative burden, and program modifications."

Dr. Heather Carpenter, executive director of INAR and author of the study, said food banks are an example of organizations that were impacted on multiple levels by policy decisions.

"Things like funding cuts from the Food and Drug Administration and then wording changes in executive orders added to the challenges that food banks faced," Carpenter said. "The programs that are being defunded or underfunded are the ones that are helping the most vulnerable."

With responses captured in November and December, which came during or in the immediate aftermath of the federal government shutdown (Oct. 1-Nov. 12), Carpenter indicated impact from federal and state government policy changes may have had a wider impact than just one-third of respondents.

Carpenter points out the "unsure" category because with the majority of respondents (65%) having an annual operating budget below $250,000, many organizations might not have the administrative capacity to determine impact in the timeframe the survey was conducted.

"Nonprofits are struggling," Carpenter said. "Operating in our state is really difficult because we have very high rates of poverty, and funding sources tend to very specific regional funders.

"There are a lot of nonprofits who do a really good job of collaborating with each other, but it's a challenge."

Louisiana has an outsized share of residents considered most vulnerable as the state's poverty rate of 18.9% is the highest in the nation, according to data from the U.S. Census Bureau's American Community Survey in 2024.

When organizations were asked which supports would be most helpful, the most common responses dealt with financial sustainability strategies (80%) and improved communication with funders (50%).

INAR is offering support specifically in areas of financial sustainability and communication as part of its North Louisiana Nonprofit Impact Conference on Sept. 10, which will be held on LSUS's campus in partnership with the Louisiana Alliance for Nonprofits.

Gather more details from the statewide study and about the Sept. 10 conference.