Area NPOs report disruption, uncertainty around federal funding freeze
Twenty-one area organizations reported a range of effects from last month’s funding freeze, with a few respondents projected debilitating revenue losses of up to 85 percent.
The data came from a survey sent to 150 area nonprofit leaders by The Community Foundation of Harrisonburg and Rockingham.
Seventeen organizations reported some reduction in services related to the freeze.
“Even as we acknowledge that this situation is fluid and changing day by day, the information provides early indicators about the larger impacts of the federal funding freeze,” said Revlan Hill, executive director. “Some organizations still don’t know the full effect.”
Hill was interviewed by WHSV TV-3 and WSVA Radio about the survey results, as well as about what she was hearing from area nonprofit leaders in the immediate aftermath of the cuts.
Watch the WHSV TV-3 interview.
Listen to the radio show.
TCFHR did not gain permission to publicly share specifics related to responding organizations, but staff did reach back out when an opportunity arose to meet with city and county officials. “We chose to speak in generalities unless we had permission to give more specifics,” Hill said.
In Summary
Some takeaways from the survey:
—Many organizations reported needing to decrease their services because of reductions in staffing, at the same time as they were seeing an increase in the need for services from new and established clients.
—Reductions in funding, realized or anticipated, were also leading to higher barriers to entry for clients; for example, benefits like free materials or free/lower processing fees were at risk.
—At least one organization reported losing one full-time staff member, while others anticipated the need to substantially reduce staffing. At least two organizations anticipated needing to shut down operations because of the loss of staffing.
—Concerns about staff wellbeing, stability and commitment are real, said one respondent whose team will face an “overwhelming backlog” if funding does resume.
“These kind of disruptions also lead to low morale and anxiety, along with an increased or even new workload,” Hill said. “The nonprofit world has always been a challenging space to work in, and staff deeply care about providing the best services to those they are serving. I can imagine many people are more anxious and concerned in their day-to-day work right now.”
—Interrupted or unstable funding can also mean the loss of several years of research, partnership, and collaboration, said one respondent, naming that the third year of a five-year initiative would be funded but not the final two years.
—Some organizations are leaning on already established partnerships or collaborations to synergize services – an innovative and positive problem-solving step, but one that takes time and energy. On the other hand, the sapping of resources and energy curtails strategic planning and reinforces the “hunker-down” mentality.
What’s Next?
TCFHR has used survey information to inform inquiring donors looking to prioritize local charities in need. Another stakeholder survey may be in order to continue to track effects, Hill said, as well as better quantify the effects of federal dollars on Shenandoah Valley communities.
TCHFR’s annual grant cycle opens July 1, and grantmaking strategies will invariably include discussion about affects on applying organizations.
With the April 16 Great Community Give just around the corner, publicity efforts for this major online giving day have intensified.
Last year’s event helped raise $2.2 million dollars. While the giving landscape may have shifted with so many organizations in need, there’s a new urgency to this year’s event, Hill said. “Contributions are always important to a nonprofit organization but they almost seem like they’re more important right now. We hope Great Community Give attracts even more donors this year.”
