Nonprofits say they are in a crisis

The country's nonprofit sector — organizations from food banks and homeless shelters to immigrant aid groups — is facing a crisis in the wake of federal funding cuts, advocates say. Why it matters: The nation's most vulnerable people rely on these groups for help — and demand for services has increased over the past year amid higher inflation and cuts to federal programs like SNAP, or food stamps . Driving the news: Data on the sector as a whole is hard to come by, but a new survey out Tuesday offers a look at the situation. By the numbers: 66% of the nonprofits surveyed in February by the Center for Effective Philanthropy said they have concerns about their organization's financial stability. The share of respondents reporting a deficit — more money going out than coming in — rose to 39%, from 22% in 2022. Almost three-quarters of CEOs report that their organizations have experienced increased demand for services. Zoom in: The survey covers just a slice of the sector. The organization polled leaders of 380 nonprofits that receive at least some foundation funding a year — and didn't include universities or hospitals. Zoom out: Government grants to nonprofits total at least $240 billion a year — more than double all foundation giving combined, according to a report from the Urban Institute out earlier this year. In 2023, there was no congressional district in the country where the typical grant-receiving nonprofit could have covered its expenses without government funding, according to the report. Between the lines: People don't think of the nonprofit sector as a market, per se, but right now it's looking like one in crisis. As the federal government has pulled back, groups are increasingly seeking support from other sources — meaning there's more competition for donations. Even groups that don't rely on government funding are feeling the pinch. What they're saying: Nonprofits and programs affected include those that weren'...

Original source: Axios