Hamilton, NJ – A new report released by United Way of Greater Mercer County (UWGMC) reveals that federal funding disruptions are causing significant financial and operational strain on local nonprofits. The report, Disrupted: How Federal Funding Volatility Is Affecting Nonprofits, highlights alarming trends, including immediate program reductions, job losses, and uncertainty about long-term sustainability.
Based on a survey responses and candid conversations with Mercer County nonprofit leaders - the report underscores the critical role federal grants play in sustaining essential community services.
Key findings include:
- 66% of organizations report program disruptions in areas such as housing, food assistance, and victim support.
- More than 180 nonprofit employees have been impacted by staffing cuts, frozen positions, or job eliminations.
- The cumulative budget impact exceeds $11.5 million, representing a significant threat to community services.
“These are not just numbers—they represent real people, families, and communities in need,” said Sandra Toussaint, President & CEO of UWGMC.
A Call to Action
The report outlines several recommendations to mitigate the crisis:
- Bridge funding from local government and philanthropy to prevent service disruptions.
- Advocacy for stable and timely federal commitments to avoid funding gaps.
- Support for nonprofit sustainability, including general operating reserves and diversified revenue streams.
- Stronger collaboration and planning among nonprofits, funders, and policymakers.
“Nonprofits are resilient. However, every minute spent navigating funding uncertainties is a minute lost in serving those in need,” added Toussaint. It’s vital that we rally behind the nonprofit community and support the critical services that so many depend on.”
Read the Full Report & Get Involved
The full report is available at: https://www.uwgmc.org/sites/uwgmc/files/UWGMC_Freeze_Report-Final.pdf
