San Diego nonprofits face rising demand and shrinking budgets
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Most San Diego nonprofits are struggling to meet a heightened demand for services as critical funding has fallen off and become less stable, a recent report found.
Why it matters: The financial strain is forcing local organizations to cut staff and services that residents rely on for basic needs like housing and food.
- Local nonprofit employees also make up about 10% of the county's private-sector workforce.
By the numbers: More than 80% of San Diego nonprofits reported reduced funding last year, while 70% of those entities saw increased demand, according to the 2025 State of Nonprofits and Philanthropy Report released last week.
- A fifth of organizations surveyed have already laid off or furloughed employees, and nearly half are considering reducing staff positions or hours.
- Nearly half are reducing programs and services.
Zoom in: The largest funding cuts came from the federal government, but nonprofits also saw decreases from state and local governments, foundations and individual donors, per the report.
- Because health care, education and human services sectors receive the largest share of government funding, those organizations are more heavily impacted by cuts.
What they're saying: "This is a significant shift," Tessa Tinkler, senior director of research at the Nonprofit Institute, told Axios.
- Federal policy changes such as new SNAP rules and the loss of funding are "making it more difficult than ever" to meet demand, she said.
The intrigue: Many organizations are seeing regular clients, such as immigrant populations, not show up for basic services like health care and education because of fear and anxiety about being in the physical space, Tinkler said.
Zoom out: San Diego County's philanthropic sector is smaller than other regions, which makes this area more volatile when that money is at risk.
- LA County has 2.6 times more foundation assets per capita, and the Bay Area has 6.9 times more, according to the report.
Yes, but: San Diegans highly value local nonprofits and residents have more confidence in them than government or business, the institute's public opinion polls show.
- These organizations rely heavily on community support to operate, so volunteering and giving money — even a small recurring donation — helps keep nonprofits stable.
- Paying attention to local policy decisions and participating in elections is one way San Diegans can help shape the conditions that affect nonprofit services, Tinkler said.