It’s never been an easy time to be in the nonprofit sector. This is true almost by definition: Nonprofits exist to address social problems. That’s as true of big disaster-relief organizations like the Red Cross as it is of a food pantry in rural Oregon. And trying to solve problems means coming face to face with those problems — be they hungry neighbors or those displaced by natural disaster — on a regular basis. And funding for nonprofits has always relied on a variety of factors. Donors’ ability and willingness to give fluctuates depending on the state of the economy, and in tough times, they simply don’t have as much to spare. While governments, both local and federal, have been a reliable funder of nonprofits, those funds can fluctuate, too, depending on both the amount of available revenue and on the political landscape. And grantmakers’ coffers and interests vary over time as well. And in 2025, Oregon nonprofits are finding themselves up against a host of challenges: a shifting philanthropic climate, economic pressures on small-dollar donors and federal cuts that have left nonprofit leaders making tough decisions. “We now have a situation where there are significant cuts, program freezes and the end of entire programs that are hitting communities across the state of Oregon, and those are predominantly delivered by nonprofits — whether it’s through federal money, whether it’s state money, it’s county money, or whether it’s even privately funded,” says Jim White, executive director of the Nonprofit Association of Oregon, noting that cuts at the federal level could affect private funding in a couple of ways. One is that there’s more competition for private grants. Another is that there are components of the House Reconciliation Bill — also known as the One Big Beautiful Bill passed by Congress this summer — that disincentivize charitable giving. But while Oregon nonprofits are down, they’re not out. White says nonprofits throughout the state are looking for ways to adapt. His organization held a session for members about what mergers can look like for nonprofits — and had far more interest than he expected, with 100 people participating. He’s also hearing about adaptive strategies that are more discouraging, like laying off staff but hiring them back as contractors, or cutting jobs or programs altogether. “We’re seeing lots of creativity. Our concern is that it is again done on the backs of people who care, people who are trying to make things work,” White says, noting that it’s especially concerning given that nonprofits tend to be disproportionately staffed by women and people of color. Every fall Oregon Business honors the 100 Best Nonprofits to Work For in Oregon (see p. 39). This year we also decided to reach out to nonprofits in a variety of sectors to see how they’re faring in an increasingly challenging funding environment. The point of telling these stories isn’t to bring you down but to offer a snapshot of how organizations are adapting. In the pages that follow, you’ll meet the directors of several food banks throughout the state, talking about how they’re adapting in the face of federal cuts to nutritional assistance programs that have historically enabled them to feed their communities. You’ll learn from the director of a nonprofit that advocates for foster youth across Eastern Oregon how her organization is adapting in the face of sudden cuts. And you’ll meet the director of a nonprofit that sued over cuts to its funding and won — but still doesn’t know when funding will be restored. White says that regardless of what’s ahead politically, now is a good time to reflect on how we want nonprofits to serve the community — and how we want to fund them in the future. “Regardless of who’s in in midterms, who’s in after this administration, what we’re looking at is a pretty significant reset in the way that government works with the community through the funding that they provide,” White says. “I think particularly for this state, we’re recognizing that without federal government money, the math doesn’t work on the things that we want to do as a state, and so will the state look at how it’s making its revenues, and what it’s going to do to provide the kind of services that community is wanting? And certainly nonprofits can play a role in that. We’re very well trusted by society, by communities. We’re made up of community. I think there’s a role for a broader discussion now around how Oregon can reimagine the way that public-benefit work happens, and what it is that we’re going to be able to support in our society and in our communities.” - Christen McCurdy Staying the Course In 2025 Oregon nonprofits are navigating choppy waters. We talked to a few of them about how they’re navigating federal funding cuts and a challenging fundraising environment — and what keeps them focused on the work. Volunteers in the foodshare kitchen prepare food boxes at FOOD for Lane County in Eugene JASON E. KAPLAN 30
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