The nonprofit crisis is a business crisis | Guest Opinion

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For more than a century, United Way has stood beside business leaders through recessions, natural disasters, and moments of profound social change. It is part of our shared DNA to step forward during difficult times — much like George Eastman, business leaders, and 7,000 volunteers did when they raised the equivalent of $3.75 million today to support the homefront during World War I.

But what we are confronting today is different. This is not a temporary funding gap or a crisis with a predictable recovery curve. It is a slow-moving destabilization of the nonprofit sector: the very infrastructure that supports our region’s stability, workforce readiness, and long-term economic health. Unlike past crises, this one is driven by policy decisions that treat nonprofits as peripheral rather than essential.

As one of the largest funders of human services in our region, United Way has a front-row seat to this unfolding crisis. Organizations are being forced into impossible choices. With uncertain funding, increased needs, and nearly 90% of nonprofit leaders reporting burnout, the question becomes: how can nonprofits meet this moment?

The infrastructure that sustains thriving communities and productive workforces is beginning to crack.

Every day, United Way supports systems that make business possible. We invest in early childhood programs that prepare the future workforce. We support health and mental health services that keep employees healthy. We fund financial coaching and job training to help families build economic stability. We help ensure families have food, stable housing, and emergency resources. And we support working professionals in every life stage — from after-school programs for children to caregiving support for older adults — so employees can remain in the workforce.

But United Way is only one slice of the pie. Last year, we raised $17.7 million — an extraordinary demonstration of generosity from more than 500 workplace partners and 30,000 donors. Yet philanthropy cannot fill all the gaps.

Policy changes to SNAP and Medicaid will increase demand for nonprofit services. Organizations that rely on federal, state, or municipal funding — often 40% or more of their budgets — are facing contract delays or payments that simply stopped. Rising costs and donor uncertainty are making philanthropy more difficult. The pressures are converging in ways nonprofits cannot withstand alone.

Yet while the challenges are real, so are the solutions. United Way recently reshaped our grants strategy to strengthen nonprofit capacity and deliver resources faster. Our United Response Fund deployed $250,000 to Foodlink during the government shutdown to stabilize the emergency food network — an example of the agile support required to keep core services intact.

For more than 100 years, business leaders have partnered with United Way because they understand a simple truth: thriving communities create the conditions for thriving businesses. When nonprofits are strong, businesses benefit from a more stable workforce, healthier employees, and a more vibrant economy.

Today, business leadership is deeply needed. Here’s what you can do:

Activate your workforce. Organize volunteer days, encourage workplace giving, and support nonprofit board service. When employees give — with their time, talent, or treasure — they create steady support for local nonprofits.

Champion investment if you serve on a nonprofit board. Champion investment in management capacity and financial reserves. They’re essential infrastructure. Give your nonprofit CEO and staff the authority and support they need. And if you have not given your board gift yet, give. 30% of annual gifts come in December, which does not give nonprofits much time to plan.

Share your expertise. The 90% burnout rate reflects capacity challenges. The strongest partnerships happen when businesses help nonprofits strengthen management and communications infrastructure. Leverage your expertise and consider pro-bono support.

Dig deep and give. This is not a moment for business as usual. Companies can stabilize by stepping up with added generosity. Consider making an additional corporate gift or offering targeted support. Next week we are hosting ROC the Day, where over 500 nonprofits will seek support during this 24-hour giving event.

Use your influence. Stand by nonprofit partners when they face delays or challenges, recognizing these issues stem from chronic underfunding — not poor performance. Advocate for timely government payments, fair contract rates, and a strong human-services system. Your voice carries weight.

Strengthening nonprofits is not charity. It is strategy. It is economic stewardship. And it is one of the most important investments we can make to build a more resilient, equitable, and prosperous region for all.

Jaime Saunders is president and CEO of United Way of Greater Rochester and the Finger Lakes