JUNE 2025 — How Much Do Nonprofits Rely on Federal Funding? A Lot. Here’s Why It Matters:

Nonprofits don’t just do good, they get things done. From helping families find affordable childcare, to supporting veterans and tackling homelessness, nonprofits deliver critical services across the country and here in Arizona. But who helps them do it? 
The government.

Federal, state, and local governments often team up with nonprofits through grants and contracts. Think of it as a tag-team effort: the federal government gives money to state and local agencies, who then work with nonprofits to put that funding into action — on the ground, where it matters most.

Over the years, as the government downsized, it handed more responsibility to nonprofits, and nonprofits stepped up. They’ve become the go-to partners for delivering social services the government can’t — or won’t — provide on its own.

This partnership gives nonprofits a steady stream of funding, helping them keep their doors open, their staff employed, and their communities supported. But there’s a catch: everything depends on policy and budgets. A change in administration or a shift in priorities can put that funding — and the vital services it supports — at risk.

So, what happens if those federal funds disappear?

When federal funding dries up, nonprofits don’t just tighten their belts, they’re forced to lay off staff and scale back services, leaving vulnerable communities without the help they rely on. And it doesn’t stop there. With fewer people employed in the nonprofit sector, the broader economy takes a hit, too. Nonprofits employ more than 12 million people across the United States.

Bottom line: Federal funding isn’t just helpful, it’s essential. Without it, millions lose access to life-changing support, and the nonprofits that power our social safety net are left without the resources to continue.

How can you help?

Your voice matters! Contact your Arizona representatives and let them know how important federal funding is to Arizona nonprofits. Need a sample letter or email to send? We’re happy to help. Contact us at: info@hycaz.org.

US Senators–Arizona:
 https://www.senate.gov/states/
AZ/intro.htm

US Representatives–Arizona:
 https://www.house.gov/representatives/find-your-representative

Please consider donating to support youth experiencing homelessness who rely on the services HYC provides: https://hycaz.org/donations

In conclusion, cuts to federal funding are already affecting nonprofits’ ability to serve. The road ahead is exceptionally uncertain, but with determination, creativity, and most importantly, the support of people like you, we can keep pushing forward even in the face of uncertainty.