2025 THRIVE | Federal Funding Impacts – Whatcom Community Foundation

2025 THRIVE | Federal Funding Impacts

Community Resilience, Equity, Giving, Grantmaking, News, Nonprofit Sector, THRIVE

April 3, 2025

Hi neighbors,

We’re doing our best to keep up with fast-moving federal policy and program changes and their local effects. As I write, news has just broken that some $12 billion in federal health funding to states to track infectious disease and provide mental health and addiction treatment has been terminated.

In our recent survey of local nonprofits, half the respondents reported experiencing delays or ambiguity about grants already awarded; all are diverting staff time to assess impacts. It’s all a moving target at this point, but one thing is certain amid the uncertainty: there’s no better time to get neighborly.

Thanks for reading about how you can help,

Mauri Ingram,
President & CEO

COMMUNITY CHALLENGE
Local Impacts of Federal policy changes and economic uncertainty

Across Whatcom County, people and organizations are facing harmful effects of federal job and program cuts, along with policy changes that freeze, reduce or abolish nonprofit funding sources. At the same time, signs point to an increasingly turbulent economic landscape, fueled by new tariffs and state budget cuts among other factors. All to say, while insecurity and loss define the state of today’s public and nonprofit sectors, demands on nonprofits are increasing on all fronts. This means everything from food, housing, healthcare and childcare to education, arts and environmental protection.

While insecurity and loss define the state of today’s public and nonprofit sectors, demands on nonprofits are increasing on all fronts.

Looming over these realities are possible changes to the tax code that threaten to revoke nonprofit tax-exempt status, strip requirements for nonpartisanship and weaken long-standing endowments.

Two key points:

In addition to losing critical funding, the changes and uncertainty draw nonprofit leaders and staff away from their core mission work as they try to figure out how to adjust to a new and quickly changing landscape.
While philanthropy cannot possibly fill the gap created by the loss in federal funds, that is not a reason not to give more. Organizations and the people they serve need support. They always do. Now they need more, and it all helps.

WHAT WE’RE DOING

Providing technical assistance to nonprofits. Every day we are meeting with nonprofit leaders seeking guidance in navigating changes, building capacity and finding resources.
Increased the amount of funding available for community grants by 25% through a higher spending rate from our endowment, a long-term investment fund that supports local causes in perpetuity.
Tracking, learning and communicating, including through a new page on our website.
Making grants: $250,000 Health and Wellness grants to more than 50 local nonprofits last month.
While the final tally on Project Neighborly grants won’t come until later this month, we can report the largest pool of applicants since launching the grant program in 2016. More than double last year’s total! We see that as good news; neighborliness is contagious and as always, the ideas are great.
Advocacy: sharing stories and information with political decision makers, our funder colleagues, and donors.

HOW YOU CAN HELP

Lean in to local. Regardless of what’s happening in the other Washington, or even Olympia, you can always make a difference in your backyard. Look for ways to help and get engaged in your community. Volunteer, donate, advocate, support local students, attend a city or county council meeting, join something. One idea: garden, glean or bake
on behalf of hungry neighbors.
Fund your favorite Project Neighborly idea TODAY!
Learn why it’s important not to tax nonprofits.
Reconsider your investment strategy: is now the time to shift from Wall Street to Main Street? We have exciting opportunities for that!
Practice compassion/empathy. Remember that you don’t know what someone else’s story is.
Create a fund/endow a field of interest fund to support (whatever you want).
Give to your favorite nonprofit.
Give to the Nonprofit Vitality Fund, which provides mini grants for a variety of organizational and financial health strategies that strengthen local organizations. One recent grant is supporting a local children’s organization’s strategic planning effort.
Reach out to federal elected officials, Rick Larsen, Patty Murray Maria Cantwel l and the White House and let them know how essential nonprofit organizations are to the health and vitality of your community, and encourage them to continue to invest in, partner with, and support the nonprofit sector with aligned funding and policy strategies.