Data as an advocacy tool

On September 16, 2025, Grupo Nexos hosted a powerful discussion that combined experiences, data, and testimonies to educate and drive action. The specialized panel on national and local strategies for nonprofit financial sustainability brought together three leaders to examine both the challenges facing this sector in Puerto Rico and strategies for the future. The event was supported by the Youth Development Institute, Kennesaw State University, and the University of Puerto Rico’s Medical Sciences Campus.

Numbers tell a story of vulnerability and strength

Data presented by Thiyaghessan Poongundranar, data scientist at the Urban Institute, revealed a stark reality: 84.2% of Puerto Rico’s nonprofits that file the federal 990 form would face financial deficits if they lost government grants. This rate is significantly higher than the national average of 67.3%.

“This research looks at the organization as a unit of analysis. That includes churches, charter schools, and any community-based organization. All the social services you can imagine… This transcends partisanship because we’re simply talking about all nonprofits. All of them face this risk,” explained Thiyaghessan Poongundranar.

But the data also tell a story of economic impact. As Brayan Rosa Rodríguez, MPA EdM, consultant for Grupo Nexos, explained, a comprehensive analysis based on 2022 research conducted by Estudios Técnicos shows that the sector:

• Employs more than 100,000 people (15% of total employment) 
• Serves 700,000 residents annually (1 in 5 Puerto Ricans) 
• Contributes 5.6–6.3% to Puerto Rico’s GDP 
• Leverages more than 734,000 volunteers contributing $1.2 billion in economic value

“The third sector does extraordinary work and has consolidated its role as a fundamental actor in Puerto Rico’s social and economic development, especially given the growing and fragmented needs of our citizens,” said Rosa Rodríguez.

His analysis painted a compelling picture of what Puerto Rico would look like without its nonprofit sector: massive service gaps, economic contraction, and the collapse of community-level disaster response capacities that have proven essential in recent years.

Financial management as a response

While 44.3% of organizations have faced cash flow problems due to delays in government funding, Aida Rivera of Asesores Financieros Comunitarios demonstrated that strategic financial management can make the difference between surviving and thriving.

“The first thing we have to do is analyze the sources of our income. We must review expenses, identify what portion is secured, and diversify funding so that not all our eggs are in one basket,” she explained.

Rivera emphasized the critical importance of understanding the concept of “month operating cash on ratio” and maintaining continuous financial monitoring. Her organization’s track record speaks for itself, helping secure more than $2 million through PPP programs and saving $300,000 in administrative costs for community foundations.

Leveraging data for advocacy and change

The panel was not limited to discussing challenges; it also addressed how organizations can strategically use data to advocate for systemic change. Nearly three decades of comprehensive research provide nonprofits with compelling evidence to make their case before:

• Government leaders: showing that every $1 invested in nonprofit educational services saves the government $17 in direct provision costs and $4 for every dollar in health services. 
• Private sector partners: demonstrating the sector’s role as a major employer and economic contributor worthy of investment as critical infrastructure. 
• Philanthropists and foundations: highlighting the efficiency and community-level impact that nonprofit alliances deliver.
  

Adapting to changes in federal policy

The panel addressed the impact of recent changes in federal policies affecting grantmaking and funding flows. Instead of viewing these as insurmountable obstacles, the discussion focused on adaptation strategies:

• Risk assessment: systematic review of all federal funding sources 
• Diversification acceleration: fast-tracking development of alternative funding 
• Coalition building: strengthening collaborative networks to share resources and advocacy efforts 
• Legal advocacy: engaging in ongoing litigation challenging restrictive policies
  

Moving forward with data and determination

As organizations navigate an increasingly complex funding landscape, the panel’s message was clear: data is the best advocacy tool, continuous financial monitoring is a lifeline, and collaborative action is the path to sustainability.

Puerto Rico’s 13,863 active nonprofits represent more than organizations; they represent community resilience, economic stability, and social innovation. Supporting their financial sustainability is not charity; it is an investment in Puerto Rico’s future.

“We must listen to each other, seek alternatives, join forces, and design joint proposals, projects, and programs,” concluded Aida Rivera.

Resources and tools

Presentation materials and resources from this panel are available through Grupo Nexos. Organizations seeking financial technical assistance can connect with Community Financial Advisors.

Urban Institute nonprofit data and research tools:

• What is the financial risk of nonprofits losing government grants? (Interactive Data Visualization) 
• National Center for Charitable Statistics 
• Center on Nonprofits and Philanthropy Research

Additional resources:

• Philanthropy Puerto Rico & Estudios Técnicos: Study on Nonprofits in Puerto Rico, 2022 
• National Council of Nonprofits: Resources on federal policy impacts and advocacy strategies

Panel presentation: Panel Especializado- Estrategias Nacionales y Locales para la Sostenibilidad Financiera de Organizaciones Sin Fines de Lucro

Panel recording: