Central Ohio nonprofits feel federal funding squeeze
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Columbus-area nonprofits providing housing, food access and other basic services face growing financial strain as federal funding cuts increase demand and intensify competition for private donations.
Why it matters: A recent survey from the Center for Effective Philanthropy found 66% of nonprofits are concerned about their financial stability as demand for their assistance rises and public support shrinks.
- The percentage of responding nonprofits operating at a deficit rose to 39%, up from 22% in 2022.
Between the lines: As aid from Washington declines, nonprofits are increasingly turning to grant-making foundations and private donors to help cover widening funding gaps.
- The Trump administration defended the cuts in a statement to Axios by saying nonprofits can continue relying on private philanthropy.
Yes, but: Local philanthropic leaders say private donations alone can't fully replace lost federal dollars.
- Government grants to nonprofits total at least $240 billion annually, more than double all foundation giving combined, according to the Urban Institute.
Zoom in: Growing reliance on charitable giving puts added pressure on major regional funders such as The Columbus Foundation, one of the country's largest community foundations.
- It manages thousands of charitable funds and distributes grants supporting causes ranging from housing and food access to the arts and education.
- Last year, the foundation launched a new Emergency Response Fund and a Center for Change Management as nonprofits started feeling the squeeze.
What they're saying: "The challenges experienced by nonprofits in 2025 have persisted, if not expanded, into 2026," says Dan Sharpe, the foundation's VP for community research and grants management.
By the numbers: One of the foundation's grant cycles early this year saw a 231% increase in applications from last year, Sharpe tells Axios.
- In another cycle, nonprofits requested seven times more funding than the foundation had available to distribute.
Nonprofits now seek larger grants while facing increasingly urgent financial situations, Sharpe says, with some reporting only "days to a few weeks of cash on hand."
Case in point: The strain is already surfacing across the local nonprofit sector.
- In February, Columbus Speech and Hearing Center, a century-old organization, abruptly shut down over unpaid rent and mounting financial challenges.
- Meanwhile, organizations including COSI and Columbus Humane carried out significant staff layoffs earlier this year.
"Our Center for Change Management is fielding a higher number of conversations about organizations seeking mergers with the hopes of financial stability, as well as a number of inquiries about [responsibly shutting down programs or closing entirely]," Sharpe said.
What's next: Sharpe says industry indicators such as Giving USA's June report will offer important insights into national giving trends and what they may mean for Central Ohio nonprofits.
Go deeper: How local nonprofits are rethinking the funding playbook