Funding reductions in organizations across Greater Cincinnati could have a significant impact on non-profits, according to a recent survey.
In a recent report, the United Way of Greater Cincinnati (UWGC), led by CEO Moira Weir, has raised concerns about the impact of a potential federal funding freeze on local nonprofits. The organisations, which provide essential services ranging from housing and youth education to workforce development, are at risk of facing difficult choices regarding service reductions or closures within six months of disruption.
UWGC, in partnership with the Greater Cincinnati Foundation and Interact for Health, surveyed 109 organisations in the region about the potential impact. Two-thirds of the nonprofits indicated they would be adversely affected, with one organisation even reporting it would be forced to close immediately due to the disruption.
Nonprofits play a crucial role in the community, not just as recipients of federal funding, but also as partners that help the federal government fulfill its obligations to citizens. The loss of federal funding could result in a loss of access to basic needs or support systems for many individuals.
A study found that most nonprofits in Greater Cincinnati receive at least 25% or more of their operating budgets from the federal government. Federal funding is designed to provide meaningful support to state and local operations, accounting for more than $1 trillion in support for such programmes nationwide.
Local organisations, however, are equipped to respond effectively to communities' evolving needs. If faced with cuts, many organisations plan to pursue private and corporate foundation funding to bridge the gap. While private philanthropy can help, it cannot make up the entire difference in funding for nonprofits.
The focus of recent executive orders and administrative memos is on federal grants and contracts. UWGC has summarised the survey results regarding the impact of a federal funding freeze on local nonprofits on their website (uwgc.org). The report underscores the vital role nonprofits play in maintaining stability in communities and highlights the potential crisis that could unfold if federal funding is reduced or eliminated.
In conclusion, the potential federal funding freeze could have severe consequences for local nonprofits, impacting the lives of countless individuals who rely on these organisations for essential services. It is crucial for policymakers to consider the far-reaching effects of their decisions and work towards finding solutions that ensure the continued support of these vital community organisations.
