Community Foundation survey finds nonprofits in Pima County ‘fraying’ after federal funding shifts
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Summary
A Community Foundation for Southern Arizona survey of 140 nonprofits found widespread funding shocks, layoffs and rising demand for services in Pima County; the foundation and supervisors urged more operating support and coordination with county programs.
Jenny Flynn, president and CEO of the Community Foundation for Southern Arizona, told the Board of Supervisors that a 2025 survey of more than 140 local nonprofits shows the sector is under severe strain after recent federal grant cancellations and policy changes.
"The nonprofit sector in Southern Arizona and Pima County is already fraying," Flynn said, summarizing quantitative and qualitative responses from chief executives and executive directors who reported impacts to services and staffing.
The survey found that 44% of respondents said federal funding changes had affected their organizations and that layoffs were already occurring in roughly 15%–20% of nonprofits, with individual layoffs ranging from one or two positions to as many as 60 staff in one organization. Flynn said midsize and larger organizations (budgets above $500,000) were disproportionately affected because they were more reliant on federal grants. She also cited qualitative reports that two permanent supportive housing programs had been defunded, putting about 200 households at risk of eviction.
Flynn urged funders and donors to prioritize general operating support, education and advocacy, and partnerships to help nonprofits rebuild. "Nonprofits right now need general operating support, education and advocacy, and an opportunity to have partnerships to rebuild," she said.
Chair Allen and other supervisors thanked Flynn and county staff for the work. Chair Allen noted the county had recently allocated nearly $2,000,000 in emergency relief grants to nonprofits but and said the funds were not sufficient to replace the losses.
Why it matters: Nonprofits provide a broad range of social safety-net services that complement county programs. County and philanthropic responses to the shortfall could affect service continuity for food assistance, housing stability programs, and other essential supports for vulnerable populations.
What’s next: Supervisors and staff said they will continue coordinating emergency support and work with the foundation and local donors to identify priorities for additional funding and capacity-building assistance.