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: In February, Columbus Speech and Hearing Center, a century-old organization, abruptly shut down over unpaid rent and mounting financial challenges.

• Meanwhile, COSI and Columbus Humane carried out significant staff layoffs earlier this year.

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 local nonprofits.

Some Central Ohio nonprofits are turning to new business ventures and deeper community partnerships as federal funding cuts, inflation and shifting corporate giving habits squeeze their already-tight budgets.

Why it matters: YWCA Columbus, Festa and Mid-Ohio Food Collective are facing increased demand amid the strain, their leaders tell Axios.

Zoom in: YWCA is leaning more heavily on private giving and has also shifted staff roles to focus on attracting and retaining individual donors.

• "Federal grants haven't necessarily dried up, but they're more restrictive," says advancement and engagement officer Makiva McIntosh.

The other side: Festa, which serves families facing poverty, has never relied heavily on federal dollars, but is still feeling the ripple effects of competition.

• To take more control over its own budget, the organization launched two business ventures, including workplace English-language instruction tailored to employers' workforce needs.
• "We charge a fee, and they pay us," founder Kim Emch says. "That has helped not only sustain us but grow."

Mid-Ohio Food Collective is relying more on partnerships to keep food moving through its network and has expanded its rescue efforts, redirecting surplus food that would otherwise go to waste.

• About 40% of the pantry's food now comes from donated products, says senior VP Mike Hochron.

The bottom line: Nonprofits have always operated with limited resources, and Emch believes they'll find a way through these challenges, too.

• "We nonprofits exist to solve the biggest problems in our world with the smallest budgets," Emch says. "I think we are a group of tenacious, scrappy, passionate people who love our neighbors."

🇺🇸 Locals gathered yesterday to honor Master Sgt. Tyler Simmons, an Ohio Air National Guard member from Columbus who died in Iraq this year.

• His name will be added to the Linden War Memorial soon. (WBNS-TV)

🕳️ A sinkhole opened up in Grandview over the long weekend, shutting down roads near the library. It should be assessed today. (WSYX-TV)

🥩 Mitchell's Steakhouse abruptly closed its downtown location yesterday. (Columbus Underground)

🏀 The Cavs got swept embarrassingly in the Eastern Conference finals after a 130-93 loss last night. (Axios)

🍽️ Another food hall could be in the works, near Clintonville. (WCMH-TV)

Our best spellers are in D.C. this week for the 2026 Scripps National Spelling Bee.

Zoom out: 15 Ohio kids are among 247 contestants who start spelling in the preliminary rounds this morning, representing nearly every corner of the state.

Zoom in: They include just one Central Ohioan.

• That's Blue Jackets-sponsored Aayu Chamoli, a 10-year-old fifth grader from Olentangy's Freedom Trail Elementary.
• He qualified by winning a regional competition.

Plus: Joseph Keffer, an 11-year-old sponsored by Ohio University's E.W. Scripps School of Journalism in Athens, is also competing.

• Though his sponsor is nearby, he's from the southern tip of the state.

📺 How to watch: In 2022, the bee ended a 27-year run on ESPN with a move to Scripps-owned network Ion, available on most streaming and cable providers.

• Preliminaries and quarterfinals are on Scripps Sports Network today and tomorrow morning.
• Semifinals begin tomorrow at 8pm, with finals Thursday at 8pm.
• The full schedule.

🤔 Spelling along at home? We hope you're better at it than many Ohioans.

• According to Google Trends, our most common "how do you spell..." search is for "cophing."
• 😬 That's "coughing," in case you weren't sure.