Key Workplace Trends for Nonprofit Leaders in 2025

The nonprofit sector is at a crossroads. In the years since the pandemic, leaders have had to balance shifting workplace dynamics, evolving funding streams, and rising demands for efficiency.

Cresa’s 2025 Nonprofit Benchmarking Report offers a detailed look at how organizations are adapting their real estate strategies and workforce policies in response to these pressures. For nonprofit executives and board members, the findings provide both reassurance and a call to action: flexibility and foresight are now essential leadership skills.

In this post, we will share the key takeaways and provide strategies to help organizations align their workplace choices with important goals.

 

1. Efficiency and Flexibility Are Now Core Strategies

Nonprofits have always been resourceful, but the data shows a sharper emphasis on doing more with less. Nearly two-thirds of respondents said they would renew or downsize their space if their lease expired in the next year, while only 12.5% said they would expand. This shift reflects the reality that square footage alone no longer drives organizational effectiveness.

Hybrid work models have helped reduce the need for dedicated desks. In fact, the percentage of nonprofits where every staff member has an assigned seat has dropped from 74.2% in 2023 to 69.8% this year. At the same time, many organizations are reconfiguring spaces to prioritize collaboration, technology, and staff well-being, adding more shared areas and upgrading audiovisual tools to support hybrid operations.

For leaders, the lesson is clear: space is a tool, not a fixed cost. Regularly re-evaluating how offices are used can free up resources for mission delivery while still maintaining staff connectivity.

 

2. Hybrid Work Is Here to Stay

The report makes it clear that remote and hybrid work policies are now deeply embedded. More than 90% of nonprofits kept their remote work policies the same in 2025.

The same percentage do not plan to require more in-office days next year. More than three-quarters said their workplaces support hybrid work well or very well. This is a notable improvement from previous years.

Still, challenges remain. While productivity has improved in hybrid settings, survey respondents cited ongoing concerns around mentorship, collaboration, and staff development. Nonprofit leaders should take a proactive role in designing systems that balance flexibility with opportunities for culture-building and growth. That might mean redefining onboarding processes or using space intentionally to create moments of connection and activation.

 

3. Policy Shifts and Funding Cuts Are Driving Hard Choices

The external environment is as uncertain as ever. The new administration’s federal funding cuts are hitting 501(c)(3) nonprofits particularly hard, given their reliance on government dollars for service delivery. By contrast, 501(c)(6) organizations—trade associations and professional societies—have been less affected, as they depend more on membership dues.

For mission-driven organizations, this divergence underscores the importance of diversifying funding sources and keeping real estate costs lean. The report shows that most nonprofits spend between one and five percent of their revenue on occupancy. Keeping this figure in check through flexible leases, shared spaces, or subleasing can preserve financial capacity for programs.

Leaders should ask themselves: Does our office space reflect both our financial reality and our mission needs? If not, now may be the time to renegotiate or rethink.

 

4. Planning Ahead Pays Off

Another clear finding: nonprofits that succeed in adapting their space plan well in advance. Roughly half of survey respondents said they began real estate planning at least 18 months before a decision point. Those who invested in long-term thinking were better able to secure favorable lease terms, negotiate concessions, and align their workplaces with future service models.

In today’s tenant-friendly market, leaders have opportunities to secure shorter, more flexible leases or explore ownership for long-term stability. But taking advantage of these opportunities requires foresight. Engaging advisors early and viewing real estate as a strategic lever rather than a sunk cost, can provide a competitive edge.

 

5. Beyond Space: Aligning Real Estate with Mission

Perhaps the most powerful insight from the report is that workplace decisions are no longer just operational. They are deeply tied to mission, culture, and sustainability. Real estate choices affect how staff collaborate, how communities engage with services, and how effectively nonprofits can respond to funding volatility.

Leaders should be asking three questions:
• How does our service delivery model (in-person, hybrid, virtual) shape the space we truly need?
• Can our real estate strategy support long-term financial sustainability in an unpredictable environment?
• Does our office configuration align with our mission, staff needs, and community engagement goals?

 

Looking Ahead

As nonprofits continue to navigate hybrid work, funding uncertainty, and evolving community needs, one thing is certain: flexibility is a leadership imperative.

 

To explore these insights in more depth, we invite you to:

1.   Watch the recording of our recent webinar. Cresa’s Nonprofit Practice Group explores how organizations are adapting to shifting funding, hybrid models, and the need for efficient, mission-aligned space.

 

2.   Read the full 2025 Nonprofit Benchmarking Report, which offers detailed data and analysis tailored to organizations like yours.