After a barrage of changes to federal funding in the first half of 2025, uncertainty among leaders at local nonprofits was palpable. To better understand how funding cuts might impact the local sector and explore ways local philanthropy can help, the Sacramento Region Community Foundation sent a pulse survey to over 800 area nonprofits. In total, 105 nonprofit leaders responded to the 15-question survey, providing critical insights. Here’s what we learned.
By The Numbers
54%
of respondents were affected by funding cuts. Nonprofits affected generally had annual operating budgets above $500,000 and higher shares of their budgets tied to government funding. Some noted the cascading impacts of the cuts on their operations, including cuts to staffing, which may ripple into the future:
Regionality
Nonprofits serving El Dorado, Placer, Sacramento, and Yolo counties reported similar rates of being affected by funding cuts, with Yolo County slightly highest at 57%. Many reported serving multiple counties. Overall, funding reductions impacted organizations consistently across the region.
Budget Size
Overall, 69% of the 36 large nonprofits (budgets over $2 million) reported being affected, and they were the most heavily reliant on federal funding. About 63% of the 24 responding mid-sized organizations ($500K to $2 million) were affected, with their public funding more evenly spread across local, state, and federal sources.
In contrast, only 37% of the 45 smaller nonprofits (under $500K) reported being affected. Generally, they had little or no federal and state funding, though some rely on local government sources.
Mission
Human Services and Arts & Culture organizations were most likely to report being affected, though the sample size for each mission category was small, overall.
Of the nonprofits that were affected by budget cuts:
Have you had to scale back operations, programs, or staff?
What funding was reduced?
Nonprofits reported cuts across a wide range of federal programs and funding streams, including AmeriCorps, SNAP, FEMA, HUD. Immigration Legal Services, and Mental Health Services Act.
What programs were scaled back?
Nonprofits that have scaled back report cutting staff and internships, food programs and vouchers, mental health services, education initiatives, and putting any new programs on hold.
What communities are impacted?
Refugees, immigrants, and asylees were the most frequently cited, followed by Latino communities, Black and Indigenous people, LGBTQ+ individuals, youth, people living with or at risk for HIV, and unhoused neighbors. Rural populations and people facing mental health challenges were also noted as particularly vulnerable
What strategies have you used, or do you anticipate using, to adapt to reductions?
Smaller organizations report leaning slightly more on collaboration and cost-cutting, while the largest organizations prioritized ramping up private fundraising.
What support would help your organization most right now?
While all organizations prioritized bridge funding and shared resources, larger organizations were those that most frequently pointed to advocacy as their top immediate need.
Supplemental source includes Sacramento Region Community Foundation’s GivingEdge database (givingedge.org).
We recognize that these results reflect only the experiences of the nonprofits that chose to respond and may not capture developments since the survey was conducted in early June. Even with these limitations, the data provides an important snapshot of how funding cuts are affecting nonprofits across the Sacramento region — and, by extension, the communities they serve.
How We’re Responding
Recently, we convened with a cross-sector group of leaders with deep ties to the region’s social impact sector — including nonprofit professionals, donors, media, and corporate giving representatives — to review aggregate results, share current philanthropic trends, note additional sector-wide themes, and brainstorm ideas for next steps. The volunteer team suggested the following, and set up sub-groups to explore first-steps to offer local support:
- Establish regional infrastructure for collaboration, communication, and fundraising
- Explore shared administrative services, social enterprises, and earned income models
- Develop inclusive criteria for distributing emergency funds and support to small and minority-led organizations
Supplementing these efforts, the Sacramento Region Community Foundation will continue to gather data, engage with affected nonprofits, and champion solutions alongside local philanthropists. This includes our region-wide capacity-building programs — like Big Day of Giving, GivingEdge, Cultivate, and philanthropic services — which help nonprofits build the skills and connections they need to sustain their missions, attract private philanthropy, and reach new supporters.
It also includes community-directed investments through the Impact Fund, which channels resources to improve health outcomes in areas that have faced historic underinvestment, such our collaborative efforts to increase food security in Yolo County. As this survey makes clear, these communities continue to be among the most impacted.
How You Can Make a Difference
Based on survey responses and general best practices in philanthropy, consider these suggestions to help:
- Give flexibly: Offer unrestricted gifts or donations that nonprofits can use where they’re needed most, helping them weather funding gaps without cutting vital programs. In addition to supporting the causes you’ve always loved, prioritize giving to efforts led by and serving communities that have historically faced underinvestment — groups the survey shows are often hit hardest by cuts.
- Advocate: Support local, state, and federal policies that sustain critical nonprofit funding streams, and raise awareness of the cascading impacts when these dollars are cut.
- Connect with local initiatives: Participate in community campaigns like Big Day of Giving, our Impact Collaborative, volunteer, or explore local nonprofit profiles on GivingEdge to learn more about who’s doing the work.
- Support capacity-building: Invest in trainings, collaborations, and technology that help nonprofits strengthen their operations and adapt for long-term sustainability. Sponsoring Big Day of Giving is one straightforward way, and our team can connect you with other opportunities as well.
If you have questions or want to explore how you can support these efforts, please reach out to us. Together, we can help strengthen the nonprofits that hold our community together.
