A year of federal funding and policy changes have strained southwest Washington nonprofits, according to a new report published by the Community Foundation for Southwest Washington. The “Finding Ways Forward” report presents data from the organization’s 2025 nonprofit survey, which polled more than 100 nonprofit leaders across Clark, Cowlitz and Skamania Counties. The responses reveal a sector navigating major financial challenges and growing uncertainty. Acute concerns include staffing reductions, program closures, additional administrative burdens and a rising demand for services. Larger organizations carry the greatest financial exposure, with cause areas like early childhood education, food security, and physical and mental health most reliant on federal funding. Because of this, leaders across the sector — including those insulated from federal changes — anticipate ripple effects that will increase competition for philanthropic resources and weaken essential community services. 60% of respondents feel insecure or worse about the state of the sector. Nonprofit leaders emphasized creativity and collaboration, including efforts to diversify revenue streams, strengthen partnerships and invest in shared infrastructure.