Nonprofits are shifting practices as they work through federal funding cuts and economic concerns of communities after tariffs went into effect. Michael Morefield with AZ Impact for Good says during times of economic uncertainty more people turn to nonprofits for help.
AZ Impact for Good explains the direct and possible indirect impacts they are facing after federal funding cuts and tariffs. Many are downsizing staff and looking for new ways to make budgets stretch.
After tariffs and a few days of a plummeting stock market, Arizona nonprofits brace for the impacts of the economic upheaval.
Organizations have lost federal funding from executive orders and federal budget cuts. This has caused program cuts and downsizing of staff.
“One of the conversations we have had as a group is that as the possible chance for increased tariffs there is a higher chance of people needing more services for nonprofits,” said Michael Morefield with AZ Impact for Good.
Morefield said nonprofits rely on long-term planning for budgets.
“The best way to make your dollars really stretch is long-term planning, and that’s really hard when you literally don’t know what the next week will bring,” Morefield said.
Grants from the federal government do not always reflect the current cost of living.
“The costs will increase to the nonprofit; that doesn’t mean that their grants or funding will automatically increase,” Morefield said. “During an economic downturn there is a lot of evidence that charitable giving decreases, so you have this counter-cyclical situation.”
Morefield said nonprofits rely on donations and volunteers to relieve costs.
“I would love to see people find the time to volunteer,” Morefield said. “As you are spending time at those nonprofits you will see the direct impact of their work.”
