Resource
Nonprofit Business Credit Resources
New Dun & Bradstreet research reveals that 81% of U.S. tax-exempt nonprofits lack a PAYDEX® Score*, a critical measure of creditworthiness that can open doors to lines of credit, financing, and impact investment.
Without it, many nonprofits may struggle to secure capital when traditional fundraising or grant opportunities are unavailable, resulting in a significant gap in their financial resilience.
Closing the Credit Gap for U.S. Nonprofits
Over the past six months, U.S. nonprofits have faced a convergence of destabilizing forces. Inflation continues to squeeze operating budgets, with roughly 86% of nonprofits reporting rising costs, while 84% say they anticipate having to make cuts due to shifting federal grants and other funding sources, according to Associations Now. At the same time, 85% expect demand for their services to increase, further straining resources. More than one-third ended 2024 with an operating deficit, the highest percentage in over a decade.
Federal support for nonprofits has seen fluctuations in recent years. A temporary proposal to pause some federal grants led to uncertainty across the sector, though it was later reversed. Other nonprofits have faced adjustments in funding, including changes to allocations for community programs, education, and cultural initiatives, as well as the reevaluation of previously awarded grants for long-planned projects.
81%
U.S. tax-exempt nonprofits without a PAYDEX score¹
84%
Nonprofits expecting to make cuts due to shifting federal grants²
85%
Nonprofits expecting increased demand for their services
Why Financial Credibility Matters-and Where PAYDEX Comes In
In an environment where grant availability is shrinking and competition for funding intensifies, having strong business credit is essential. A PAYDEX Score serves as a baseline indicator of financial health and reliability for nonprofits. Grantmakers, lenders, and institutional partners increasingly use it to assess stability. Without it, even well-managed nonprofits may be overlooked or disqualified during formal assessments.
Four Financial Priorities for Nonprofits in Uncertain Times
When a company is said to have good business credit, it usually means the organization has a record of responsible financial behavior. While past performance is no guarantee of future success, potential partners often check a business’s credit file to assess the potential risk of working with that company. Here are some possible benefits of good business credit:
Know and Monitor Your Credit Profile: Understand your PAYDEX Score and other business credit metrics and review them regularly. Timely payments, vendor relationships, and reporting accuracy all influence your score.
Diversify Funding Sources: Avoid over-reliance on a single grant or funding stream. Explore lines of credit, low-interest loans, corporate partnerships, and community investment programs to supplement grant funding.
Strengthen Vendor and Partner Relationships: Good credit can lead to better payment terms and pricing from suppliers, freeing up resources for mission-critical programs.
Prepare for Capital Needs Before They Arise: Build and maintain a healthy credit profile so you can move quickly when opportunities or challenges emerge.
In unpredictable economic times, financial credibility is a strategic asset. By understanding and actively managing business credit, nonprofits can strengthen resilience, expand funding options, and ensure they’re positioned to keep making an impact when their communities need them most.
Want to learn more about the D&B Paydex Score? Click here to download the infographic.
¹Based on analysis of 546,938 U.S. Exempt Organizations with assigned or registered D‑U‑N‑S Number per IRS records as of August 12, 2025.
²“Report: Nonprofits Facing Stronger Headwinds,” by Mark Athitakis, published in Associations Now on June 24, 2025. Available at: https://associationsnow.com/2025/06/report-nonprofits-facing-stronger-headwinds/..
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