Government Funding Cuts Put Nonprofits at Risk

The National Council of Nonprofits has a chart of recent executive orders and how they may impact the nonprofit sector.  It is updated regularly here.

Our colleagues at Missouri Foundation for Health also published a recent article entitled "Navigating the Waves of a Turbulent Federal Government" with additional context.  

This article from Urban Institute highlights some of the ways that nonprofits across the country would be impacted by government funding cuts.  

Nonprofits are the cornerstone of vibrant, resilient communities, providing day-to-day services and critical supports when disasters strike. In communities nationwide, nonprofits provide groceries, meals, and shelter to people experiencing housing and food insecurity. They take care of the young and the elderly, run suicide prevention hotlines and intervention services, and provide job training. Nonprofits organize after-school tutoring programs and manage free and low-cost medical clinics in rural, suburban, and urban communities. They help people gather, share stories, and organize community groups.

Many nonprofits are facing a funding cliff. Recent executive orders and actions cutting federal funding have created a state of uncertainty for nonprofit organizations nationwide. Some are already seeing federal grants and contracts paused or canceled, and others have been left in the dark about current grants and future prospects given pending legal challenges.

In this uncertain environment, some nonprofit leaders are deciding whether to close their doors; adjust staff size, services, and programs; or identify additional sources of revenue. Many of these options would diminish nonprofits’ ability to carry out their missions.