New York’s Nonprofits Rise to Face Mounting Pressures

As federal funding cuts deepen longstanding challenges, Trinity Church brought New York’s nonprofit leaders together to respond with clarity, collaboration, and care.  

Nonprofit organizations across New York City have navigated formidable challenges this year. Sweeping new federal grant cuts and legal uncertainties have raised urgent questions about how these vital institutions — often tasked with providing essential services to the city’s most vulnerable residents — will continue to carry out their missions. As the social sector faces mounting pressure, Trinity Church invited New York’s nonprofit leaders to gather and chart a path forward. 

More than 150 leaders, representing over 100 nonprofits, convened at Trinity Commons on October 1 for “Protecting the Heart of New York,” a conference designed by Trinity Church Philanthropies to help nonprofits respond to this moment. Through sessions that examined sector-wide risks and offered crisis-management tools, and a reception that fostered connection and collaboration, the gathering affirmed that resilience is built through community. 

“This is a difficult time. Organizations doing vital work are under threat — and so are the people who make that work possible, and the communities who rely on it,” said Bea de la Torre, Trinity’s chief philanthropy officer. “But seeing so many nonprofit leaders in one room reminded me of the power and depth of this sector. Trinity is committed to facilitating these connections, because we know that when we come together, we share wisdom, build strength, and become better equipped to face whatever lies ahead.” 

Nonprofits are on the front lines of essential health and human services, stepping in as contractors to help government agencies meet their obligations to the public. New York City’s 13,000 nonprofits contribute nearly $78 billion per year to the economy — nearly 10 percent of the city’s GPD — and employ almost 18 percent of all workers.  

When the Trump administration began targeting federal grants and loans in January, Trinity’s Philanthropies team reached out to nonprofit leaders to understand the impact. What emerged was a sobering picture of a sector already stretched thin. Nonprofits in New York City were grappling with the rollback of COVID-era support and chronic payment delays. About 41 percent of New York City nonprofits reported an operating deficit last year, compared to 36 percent of nonprofits nationwide, according to the Nonprofit Finance Fund. Only 19 percent of the city’s nonprofits said government funding was paid on time, compared to 47 percent nationally. Overall, the Comptroller’s Office estimates the City owes nonprofits roughly $4.9 billion in unpaid contracts. 

One of the goals of Trinity’s convening was to help nonprofit leaders make sense of how recent federal actions have compounded longstanding challenges. Representatives from the Center for an Urban Future, the Nonprofit Finance Fund, and New York Lawyers for the Public Interest examined the sector’s current landscape, while the Human Services Council of New York guided attendees through crisis planning. 

Beyond financial strain, nonprofit leaders are confronting a damaging narrative that their organizations are rife with waste, fraud, and abuse. To counter this misconception, Trinity teamed up with F.Y. Eye, a nonprofit media agency, to launch a citywide campaign that reminds New Yorkers just how vital nonprofits are to their everyday lives. #TheHeartofNewYork shares the stories of nonprofit workers, making their labor visible and valued. 

“Everybody depends on nonprofit organizations, whether you’re dropping your kids off at childcare, putting them in afterschool programming, or getting grandma and grandpa over to their senior center,” said Jason Wu, deputy director of the Human Services Council. “Everybody in New York benefits from having a strong human services sector.” 

De la Torre remains confident that while the challenges facing New York’s nonprofits are real and ongoing, so is their capacity to adapt, collaborate, and lead.  

“In Trinity’s 328 years, we’ve experienced wars, pandemics, and countless moments of upheaval. And through it all, nonprofits have remained the heart of this city — providing essential services, stepping in when government systems fall short, and welcoming generations of New Yorkers with care and compassion,” she said. “Together we will ensure New York’s heart beats even stronger in the years to come.” 

The Rev. Phillip A. Jackson, Trinity’s rector, encouraged New York’s nonprofit leaders to continue working, and continue hoping, for a better future. 

“Hope sees a future where anxiety sees nothing but fear. Hope leans in,” he said. “The work you do is a good to the world. Keep doing it.” 

Help spread the word about how vital nonprofits are to New York City by using the toolkit at TheHeartofNewYork.org. 

Top image: Over 150 leaders attended “Protecting the Heart of New York,”a convening designed for nonprofits navigating a shifting political landscape, on October 1, 2025.