Navigating Change: How Linn County Nonprofits Are Adapting
When federal funding abruptly froze on January 24, some local nonprofits faced new uncertainties and difficult decisions. A recent Community Foundation survey of nonprofits found that the impact of that freeze could be dire for those served by these organizations.
Federal grants and contracts enable local nonprofits to provide a range of services in our community, such as affordable housing development, meals for seniors, and support for people with disabilities. The disruption, reduction, or discontinuation of federal funds may force nonprofits to lay off case workers, discontinue programs, and potentially cease operation entirely, according to the survey.
“Nonprofits in Linn County are an essential part of our community,” said Karla Twedt-Ball, President & CEO of the Community Foundation. “Cuts in federal support have an impact beyond nonprofits – this affects our entire community, and especially the most vulnerable among us.”
Catherine McAuley Center (CMC), a refugee resettlement agency, was forced to lay off more than 40% of its staff because of the freeze. The agency suddenly did not have funds to support the refugees who had already arrived in Iowa.
“We honored the commitment the US government made when they resettled people by making sure rents, utilities, and basic needs were paid for out of our pocket,” said Anne Dugger, Executive Director. “We have been raising funds to help alleviate these costs and to keep our doors open—we lost roughly 60% of our budget within ten days.”
To help fill this gap, the Community Foundation awarded CMC a $25,000 grant to support refugees. The grant was distributed from the Community Investment Fund, which awards grants that catalyze action and contribute to long-term sustainability.
“We’re glad to be able to help Catherine McAuley Center meet this immediate need,” said Joe Heitz, Vice President of Community Impact. “But the truth is, needs are going to increase, and nonprofits will turn to philanthropy to help fill that gap. There are sure to be more challenges in the months ahead.”
The Community Foundation’s survey found that for 31% of local nonprofits, federal grants and contracts make up 20% or more of their annual budgets. Ten percent of organizations said federal funds make up 60% or more of their budgets. Nearly all organizations expressed concern over potential changes to federal spending and how those changes may impact revenue streams.
“The largest disruption we have seen so far is the fear of the unknown from staff and clients,” said Alicia Faust, Executive Director of Willis Dady Homeless Services. “Should there be a freeze or cancellation in federal funding, we would need to consider the pause or elimination of our federally funded programs.”
Federal funds support some of Willis Dady’s core homeless services, like the emergency shelter and the rapid rehousing program. Major disruptions to nonprofit funding streams can mean that even organizations and programs that don’t receive federal funds are at risk.
“We don’t receive direct federal funding, but essential services such as Meals on Wheels and USDA food for our pantry depend on government support,” said Nicole McAlexander, Executive Director of Southeast Linn Community Center in Lisbon. “Any cuts to these programs would directly impact the neighbors who rely on our services.”
While the community has so far stepped up to help fill the gap at local human service agencies, in the long term this may divert philanthropic dollars from other nonprofit sectors.
“Even for those of us who can honestly say, “we’re ok for now,” there is great anxiety and added strain,” said David Janssen, CEO of Brucemore. “Beyond jobs and programs, the real loss is in the impact non-profits make in people’s lives. The clients, patients, audiences, and neighbors will feel this.”
The uncertainty surrounding federal policy and funding also means more significant impacts on our community may still lie ahead. The Community Foundation continues to monitor the challenges local organizations are facing and work with philanthropists to respond to community needs.