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Nonprofit leaders tell council: chronic underfunding fuels burnout and staff exits
Summary
Multiple witnesses at the Committee on Public Works and Operations hearing said chronic underfunding and inconsistent indirect-cost reimbursement force nonprofit staff to shoulder costs, causing burnout and turnover that threaten service continuity for vulnerable residents across D.C.
Nonprofit leaders told the committee that long-term underfunding and inconsistent treatment of indirect costs contribute to high turnover and burnout, particularly among frontline staff. Witnesses said many organizations operate with budgets below $1 million, lack development staff, and regularly absorb expenses such as delayed reimbursements and unpaid overhead.
"Behind the scenes, it is Black women who are primarily holding up this sector, making up nearly 70% of our nonprofit workforce," Iris Jacob, director of the Coalition for Nonprofit Equity, said during testimony framing the funding gap as an equity issue. Witnesses gave examples: Community of Hope reported a NICRA of 14% while other contracts enforced lower rates; Sasha Bruce YouthWork said some programs have been flat-funded for seven years even as costs rose. Witnesses urged the council to pair any statutory increase with an appropriation and to implement standardized contract language and agency training so that increases do not simply translate into reduced direct services.
