CEO Corner: Navigating Market Volatility, Realigning Priorities, and Q2 Takeaways  

Created By: CJ Orr
Updated July 2, 2025

The second quarter of 2025 was marked by real turbulence. Not just in the markets, but also for the philanthropic and private sectors. As we head into the second half of the year, it’s worth pausing to reflect on what happened, where we are now, and how Orr Group is responding. In this update, I’ll share a few key takeaways from the broader economic and philanthropic landscape, along with highlights from our own work and progress as a firm.

Market & Macro Trends

The first week of Q2 saw a 10% drop in the stock market and a pause in economic activity as tariff negotiations dominated headlines. Decision‑making across the business world came to a halt—donors paused, companies retrenched, and everything seemed frozen in place. But momentum shifted dramatically when the administration announced a 90‑day tariff pause, triggering one of the sharpest single‑day rallies in market history. April emerged as one of the most volatile months on record.

Since then, markets have rebounded steadily. As of June 30th, we’re once again at or around new highs. Contributing factors include:

• The tariff pauses and beginning the negotiation process
• De‑escalation of tensions in the Middle East
• Strong earnings from corporate America

Philanthropic Trends & Tax Updates

April was a “perfect storm” for the philanthropic sector. With government funding tightening, we also saw individual giving slow—particularly major gifts—with many donors taking a wait‑and‑see approach during market uncertainty. Fortunately, major giving seems to be rebounding following the tariff pause.

We’re also monitoring the implications of the latest tax legislation for nonprofit fundraising. Highlights include:

• Universal charitable deduction expanded: Individuals who don’t itemize can now deduct up to $1,000 ($2,000 for joint filers).
• Charitable deduction cap adjusted: The individual AGI limit for charitable deductions increases to 35% (up from 27%), while capping the effective deduction rate at 35% of taxable income — a change projected to reduce large-dollar giving by as much as $5B annually.
• High-net-worth donor floor introduced. Itemizers can no longer deduct charitable contributions that fall below 0.5% of their AGI, potentially discouraging mid-tier giving from wealthier households.
• Donor-Advised Funds (DAFs) see new incentives. While aggressive disbursement mandates were excluded, new rules provide enhanced deductibility for DAF gifts distributed within 3 years, aiming to speed up charitable dollars flowing to the field.
• Corporate giving sees modest boost. A new 3% “super deduction” is available for companies that match employee donations, capped at $500 per employee annually. Broader tax credits for corporate philanthropy were not included.
• Foundations face a tiered excise tax. Private foundations with assets over $50M will now pay a graduated excise tax, with the top tier reaching 10% on assets exceeding $5B — a shift that could impact endowment payouts and grantmaking strategies.
• Nonprofit protections preserved. Provisions that would have allowed the Treasury to revoke tax-exempt status without due process were successfully removed, following widespread sector advocacy.
• Public benefit cuts raise service demand. Major reductions to Medicaid, SNAP, CHIP, and ACA subsidies—along with stricter work requirements—are expected to drive increased demand for nonprofit-led social services, housing, and food assistance.

Up next, the bill now goes to the House of Representatives for review and edits.

Orr Group Performance & Updates

Q2 brought both challenges and momentum across the sector and for Orr Group. Here are a few reflections:

April tested resilience. Like many in the nonprofit and philanthropic space, we saw delays in new engagements amid broader economic uncertainty. Adjusting to the moment required mid-year recalibrations—never easy, but ultimately essential. It was a time that called for clear communication, thoughtful choices, and shared accountability.

May & June marked a steady rebalancing. With a renewed focus on execution and relationship-building, teams leaned into proactive client service, deeper listening, and operational discipline. Those collective efforts helped create stability and close the quarter on firmer ground.

While these months weren’t easy, they revealed a deep well of adaptability, resolve, and generosity among colleagues and partners alike. That spirit made all the difference.

What’s Ahead

We’re closely watching the movement of the  “Big Beautiful Bill” and broader geopolitical stability, both of which could have real implications for our nonprofit partners. While early indicators point to reasonable individual giving with clear pull-backs in federal funding, we know many organizations are navigating unpredictability. Orr Group is here to help our clients stay agile, adapt with confidence, and keep moving forward in the face of change.

We’ve also updated our 2025 trends analysis—check it out here—to help you stay ahead of the curve.

Q2 Highlights: In Brief

• Introducing Orr Group’s Custom Chatbot: Our new AI-powered assistant is live—take it for a spin!
• Successful Client Events: During the month of June, we supported our longstanding partners, Bridges From School to Work and Seamen’s Church Institute, in planning and executing their annual events, raising a combined $2.7M+.
• New Partnerships: We saw a pick-up in client interest and welcomed several new relationships.
• AFP–NYC’s Fundraising Day New York 2025: A great event for the New York fundraising community, with Keynote Sponsorship and teamwide participation from Orr Group, and featuring a keynote address from Robin Hood’s CEO, Richard R. Buery, Jr.

As we head into the summer months and regain our footing from a tumultuous first half of the year, Orr Group will continue to share relevant updates with our community. I look forward to sharing those insights with you again soon! 
Best,

CJ Orr
CEO, Orr Group

CJ Orr is the Chief Executive Officer of Orr Group. As an expert project and relationship manager with 10+ years of experience in the sector, CJ utilizes data, technology, and financially-backed trends to execute on the development of strategies and tactics to drive effective fundraising plans that meet or exceed targets.