A Sector in Crisis: CEP’s Elisha Smith Arrillaga Exposes the Dangerous Disconnect Between Foundations and Nonprofits
Tue Feb 03 2026
This might be the most important episode we've ever done, and we swear we’re not just saying that. If you work in or around philanthropy, stop what you're doing and listen.
Nonprofits are facing record demand—higher than during COVID—and they're getting less funding. Not just from government. From foundations too. The sector is in freefall, and many of the people with the resources to help don't even see a problem.
Eric sits down with Elisha Smith Arrillaga, Vice President at the Center for Effective Philanthropy, to unpack their devastating new report, A Sector in Crisis: How US Nonprofits and Foundations Are Responding to Threats. The findings reveal a staggering disconnect: 40% of nonprofits say that funders have shifted priorities in ways that are less helpful at this dire moment.
And get this - 20% of foundations say they don't have much responsibility to help nonprofits navigate this moment at all!!
This isn't a wake-up call. It's a five-alarm fire. And if foundations don't start closing the gap between what they think they're doing and what nonprofits actually need, organizations will close. Communities will suffer. And philanthropy will have failed the very moment it was built for. Unless philanthropy as we know it is just no longer useful.
Listen now. Share it with your board. Share it with your program officers. Share it with anyone who still believes philanthropy can rise to meet this moment—because that moment is now.
Follow Let's Hear It and leave a rating so more people can find the show.
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This might be the most important episode we've ever done, and we swear we’re not just saying that. If you work in or around philanthropy, stop what you're doing and listen. Nonprofits are facing record demand—higher than during COVID—and they're getting less funding. Not just from government. From foundations too. The sector is in freefall, and many of the people with the resources to help don't even see a problem. Eric sits down with Elisha Smith Arrillaga, Vice President at the Center for Effective Philanthropy, to unpack their devastating new report, A Sector in Crisis: How US Nonprofits and Foundations Are Responding to Threats. The findings reveal a staggering disconnect: 40% of nonprofits say that funders have shifted priorities in ways that are less helpful at this dire moment. And get this - 20% of foundations say they don't have much responsibility to help nonprofits navigate this moment at all!! This isn't a wake-up call. It's a five-alarm fire. And if foundations don't start closing the gap between what they think they're doing and what nonprofits actually need, organizations will close. Communities will suffer. And philanthropy will have failed the very moment it was built for. Unless philanthropy as we know it is just no longer useful. Listen now. Share it with your board. Share it with your program officers. Share it with anyone who still believes philanthropy can rise to meet this moment—because that moment is now. Follow Let's Hear It and leave a rating so more people can find the show.