News & Stories
Collaborating in a Changing Funding Landscape
Photo credit: Courtney Kent Photography | Image description: A field of trilliums in a wooded area at Twin Lakes Park in Grand Traverse County
Dear Supporters,
Sudden pauses and reductions in federal funding threaten the viability of critical community programs just as social and economic pressures increase demand for services.
The implications go far beyond individual nonprofit organizations and the families, seniors, veterans, and children they serve. This challenge is especially acute in our rural communities, where ripple effects reach small businesses, local economies, and regional development goals.
In early 2025, the Community Foundation, the Oleson Foundation, Rotary Charities of Traverse City, and United Way of Northwest Michigan began convening to assess the regional scope of federal funding disruptions and identify how we might align in supporting nonprofits through this period of uncertainty.
Through survey data, nonprofit convenings, and funder dialogues, our collaborative has sought to explore how we might support shaping coordinated strategies for regional resilience.
Findings from our data-gathering and analysis include:
- 55% of survey-responding nonprofit organizations in our region receive federal funding.
- 85% of federal grant recipients report potential impacts ranging from reductions in services to terminations of programs if federal funds are lost.
- Nonprofits in Northern Michigan employ thousands of people and provide vital services to communities, from childcare to mental health, food access to housing support. Assuming loss of revenue directly translates to reductions in employment, as many as 1,000 jobs in the five-county region are at risk.
Nonprofits are having to make tough choices in real time. Organizations are pausing projects, laying off staff, and postponing contracts. What we also know is that Northwest Michigan has a deep-rooted tradition of collaboration, creativity, and care.
We have seen what is possible when funders, nonprofits, and community partners come together with shared purpose, trust, and a willingness to listen and adapt. This moment calls us to build on that legacy in new ways.
As regional funders, we are actively working to help bridge the gap between instability and resilience even while knowing that we are unable to fully fill federal funding gaps.
Examples of this work in action include:
- Circulating an open letter to policymakers about the disproportionate harm that federal funding and policy decisions have on our rural communities.
- Assessing our application pools for emerging themes and critical needs in real-time.
- Exploring ways to support nonprofits with contingency and scenario planning.
- Seeking engagement with other regional funders to consider how we can adapt individual and collectively on existing and future efforts.
Ultimately, only together can we ensure that our communities are supported in the face of change. We are committed to moving forward with humility, clarity, and care to help strengthen the fabric of our region.
To help build out our nonprofit sector data snapshot, complete this updated federal funding impacts survey (by July 14) and submit a story through this submission form (always open).
Sincerely,
David Mengebier, President & CEO, GT Regional Community Foundation
Sakura Takano, CEO, Rotary Charities of Traverse City
WHITE PAPER: Collaborating for Our Communities in a Changing Nonprofit Funding Landscape: A Call to Action
This paper is intended for nonprofit leaders and regional funders navigating the uncertainty of recent federal funding shifts. It offers a snapshot of our region’s current reality, insights from data and direct experience, and concrete ideas for responding together. This paper is not a set of prescriptions. Rather, it is a reflection of what we are observing and learning in real time, alongside the nonprofit organizations and staff living these disruptions every day. We share this not as guidance, but as a way to name the pressures at play, lift up emerging practices, and invite more shared learning and coordinated response in our region.