A recent survey conducted by the Delaware Alliance for Nonprofit Advancement shows nonprofits in the state face an uphill battle if federal funds are frozen, reduced or eliminated.
DANA’s survey received more than 300 completed responses from nonprofits statewide including senior centers, childcare facilities, shelters, addictions programs and the arts.
The survey is in response to last month’s directive by the federal Office of Management and Budget to freeze funding, and the subsequent court challenges to block implementation.
While nonprofits still struggle to gain clarity and stability, nearly 90 percent of survey respondents indicated a halt on grants and loans is extremely concerning.
"We did ask in the survey, is this something that's going to hit you this fiscal year, or next fiscal year? And most of them said that this was going to hit them in this fiscal year. So when you have a situation where a nonprofit is not able to get reimbursed for the work that they've done, they're not able then to pay their bills, and so the effect would be almost immediate," said DANA President and CEO Sheila Bravo.
According to the survey, 62% would face a fiscal impact this year if funds are frozen, 21% in future years, and 17% wouldn’t see an impact.
About 38% of nonprofits surveyed source their funds through the state, while 36% receive funding directly from the federal government.
"The number of people that they serve this particular group that answered the survey we're talking about over 500,000 Delawareans that they serve, and so a reduction in funding to that degree would have significant impacts in our state," said Bravo.
The survey found a funding freeze could lead to loss of housing, learning loss, and reduced access to vital services for health, food, arts, and culture and security.
It also found concerns about mental health and trauma experienced by those losing access to services - as well as fear and harassment of immigrants, whether documented or undocumented.
