Survey Reveals Delaware Nonprofits at Risk Due to Federal Funding Issues

WILMINGTON – Delaware nonprofits serving over half-million residents could face

immediate and significant consequences should attempts to freeze, reduce or eliminate

federal funding succeed, according to a recent survey of organizations across the state.

DANA, the Delaware Alliance for Nonprofit Advancement, conducted an online survey

earlier this month of member organizations and federal grant recipients. DANA received

more than 300 completed responses representing nonprofits throughout the state such as

senior centers, childcare facilities, shelters, addiction programs, and the arts.


In the wake of last month’s directive by the federal Office of Management and Budget to

freeze funding and the ensuing court challenges to block implementation, nonprofit

organizations have struggled to gain clarity and stability regarding the situation. Nearly 90

percent of survey respondents indicated that the halt on grants and loans is extremely

concerning to their operations.


“Nonprofits touch the daily lives every Delawarean, providing vital assistance to at-risk and

vulnerable populations,” said DANA President and CEO Sheila Bravo. “They serve meals

to seniors, provide counseling to people facing mental health and substance use issues,

protect children from abuse, offer shelter and support to the unhoused, and help sexual

assault survivors deal with their trauma.

 

“The recent developments in Washington, D.C., have created uncertainty, confusion and

worry among nonprofits about both their long-term planning and their short-term

operations. For many Delaware nonprofits, federal funding is a lifeline that allows them to

continue serving our residents. Any decrease, delay or elimination of these funds could be

catastrophic.


“The responses to this survey are clear: Delaware nonprofits are concerned about their

future and their ability to continue aiding families across our state,” Bravo added.


“Several of our members have indicated that they already are looking at staff layoffs, shuttering

programs or even closing their doors entirely. We hope that Delawareans will understand

the very real impact these potential cuts will have on services they and their neighbors rely

on, and the need to support these nonprofits.”


According to IRS tax data for 2021, Delaware-serving nonprofits receive more than $1

billion in local, state, and federal government grants. These funds come from a variety of

sources, such as pass-through funds from the State, counties or local municipalities, or

directly from the federal government.


More than 80 percent of survey respondents said that a funding freeze would have a

notable fiscal impact, with 62 percent indicating that the effects would be immediate. Of

the organizations that said they would take a fiscal hit if federal funding was halted, about

half provided dollar amounts of that impact, totaling $229 million in direct federal funding

and federal pass-throughs.


DANA has partnered with Delaware Community Foundation, United Way of Delaware, and

Philanthropy Delaware to provide resources to the nonprofit community and residents

impacted by this federal action and other executive orders, For example, the United Way

has poised their Delaware 211 as a resource.


"At 211, we know how tough it can be when federal funding and policy changes create

uncertainty for our partners,” said United Way of Delaware President and CEO Michelle

Taylor.


“Collaborating with the Delaware Community Foundation, Philanthropy Delaware

and DANA strengthens our ability to provide critical support to individuals and families

when they need it most. At times like these, 211 is a lifeline. We connect people to

essential services and we offer real-time guidance and support. Whatever challenges

come our way, 211 is committed to standing by our partners and the people we serve.”


Respondents also shared examples of the impact that the funding issues could have on

the residents they serve, including:

• Reduced access to vital services for health, housing, food, security, education, arts

and culture.

• Mental health and trauma experienced by those who are losing access to services.

• Fear and harassment of immigrants, whether documented or undocumented.

• Loss of housing.

• Learning loss.

• Inability to get a job.


Some groups shared specific examples of how their operations would be hampered. The

Modern Maturity Center, which serves seniors in Kent County, indicated that they would

not be in a position “to provide adult day care services, caregiver resource services, or

senior employment opportunities. The administration of the SNAP program will have to be

discontinued.” Additionally, more than 2,000 seniors who rely on food through the

Nutrition Services program would no longer receive those meals.


Prevent Child Abuse Delaware determined that they likely would have to lay off workers,

scrap a prospective partnership with state agencies on infant early childhood mental

health consultations, and cease community programs building protective factors for at-

risk families.


As an organization dedicated to strengthening and elevating Delaware’s nonprofit sector,

DANA continues to gather and share information to help these organizations navigate this

rapidly evolving landscape.