Survey of Richmond nonprofits shows uncertainty, fear as federal cuts continue

Survey of Richmond nonprofits shows uncertainty, fear as federal cuts continue

A group of four Richmond-area funders released a survey of local nonprofit organizations Thursday, offering some of the first data showing how federal budget cuts are impacting local operations in real time.

One such nonprofit is Family Lifeline, which has been around for more than 140 years and provides older adults and families with education, support and connection to community resources.

President and CEO Jenn Case said she has been transparent with her team that it’s impossible to have all the answers.

“We all have to acknowledge that we are in a very uncertain and unprecedented time,” she said. “I think sometimes the goals of some of these things are to create division, and to create more fear, and to create spaces where people then turn on each other. And I think we just have to name that and say we can’t let that be the result. We need to turn to each other and support each other.”

She said much of the group’s federal funding doesn’t come straight from Washington, but makes its way through state agencies first. In total, she estimated about a third of her budget was from federal funding sources, but some individual programs are as much as 80% reliant on federal dollars.

That was consistent with the findings of the survey, which showed that 59 of the 72 nonprofits relied on at least some form of federal funding.

Asked how they were feeling, nonprofit leaders most often used the terms “uncertain” and “concerned.”

The survey asked respondents how they were feeling. This word cloud represents the frequency of responses, with the larger words invoked more often.

Chris Chin, President and CEO of the Robins Foundation, one of the groups behind the survey, said it is important for funders to know how they can best support nonprofits who are waiting to see what future budgets will look like.

“It was important to demonstrate local funders’ desire to learn about and understand the current and anticipated challenges that nonprofits are experiencing and pressing needs related to these challenges,” he said. “Disseminating the findings from the survey can serve to share the stories and amplify the voices of our grantees and increase community awareness of how the nonprofit community is being impacted during this period of change and uncertainty.”

The survey asked what challenges local nonprofits are experiencing as a result of current or anticipated changes.

In addition to budgetary and planning concerns, 50% of the respondents said they were dealing with staff burnout, as the uncertainty of federal cuts takes its toll.

Many nonprofits are also feeling the squeeze locally, as Richmond Mayor Danny Avula’s budget proposes cuts to the amount of support the city provides to nonprofits.

Local nonprofits face major cuts in the city’s new budget. They’re warning of potential impacts.
“These funds are on the ground creating programs for kids that are really making a meaningful difference.”

One respondent to the survey said even though they didn’t directly rely on federal money, the reduction in funding across the city has impacted them, as funders find themselves more in demand by groups looking to make up the difference.

Funders are often known for taking a slow and methodical approach to giving, but in this case, the survey reflects the urgency of the potential need if more federal cuts are made in the coming months.

One survey respondent said while the crisis isn’t existential, it could force their organization to dramatically change.

“We will survive but (it) may be a very different organization depending on the level of cuts,” they wrote.

At Family Lifeline, Case said the funding changes should be seen as an opportunity to unite Richmonders in service.

“It’s our opportunity to stay steady and stay the course, and if anything else, dig deeper into our communities, deeper into relationships,” she said. “So I’d encourage people, don’t pull back right now. The community needs you to find a place to dig in.

“There are so many ways that we can all come together right now.”

Contact Michael Phillips at mphillips@richmonder.org. The Robins Foundation is a donor to The Richmonder.