Federal actions force San Diego nonprofits to cut services, staff
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Many nonprofit organizations across San Diego County are facing financial instability and have been forced to cut staff and services as they navigate recent federal policy changes, funding freezes and executive orders.
Why it matters: Nonprofits are a major employer in the region and deliver services that are critical to and enhance people's lives.
- Their work is being hindered across industries, including performing arts and museums, medical research and health care, education, immigration, housing, food and parks.
Driving the news: The Nonprofit Institute at the University of San Diego surveyed more than 400 local organizations in mid-February and found nearly one-third were forced to modify or discontinue services or programs due to federal actions.
- Most rely on federal funding to operate, and 52 organizations reported at least a quarter of their budget is currently in limbo.
- In addition to financial uncertainty, organizations also reported increased anxiety and fear among their staff and clients.
By the numbers: While President Trump's funding freezes face legal challenges and have been blocked by courts, nonprofits still felt the impact, the survey showed.
- 40% reported issues accessing federal funds
- 22% expect to cut or furlough staff or already have
- About 500 employees have been laid off across 15 organizations, most of which work with immigrants and refugees.
Between the lines: Nonprofits often run on thin margins and they mostly work on a reimbursement basis with federal money, Laura Deitrick, executive director of the Nonprofit Institute at USD explained. They've already done the work, but need to bill the government to get paid and that's not happening, she said.
- But as those services stop or the quality drops without that money, the need doesn't go away.
The bottom line: In the report, organizations say they need support from foundations and donors through flexible emergency funding, advocacy for more stable policies, legal aid, and new partnerships and coalitions to deliver services.