Manatee Community Foundation Warns of Strain on Nonprofits Amid Funding Cuts

The Manatee Community Foundation is sounding the alarm about the growing pressures facing local nonprofits as federal and state funding declines ripple through Manatee and Sarasota counties.

CEO Veronica Thames outlined the challenges in a recent statement, noting that more than 200 nonprofits in the region rely on federal grants, with many already reporting losses. According to a recent MCF survey, 60% of local organizations saw reduced funding last year, and nearly half anticipate additional cuts in the months ahead.

The strain comes at a time when the area’s population is rapidly increasing, putting greater demand on nonprofits that provide housing, healthcare, food security, and educational programs. Foundation leaders caution that shrinking resources could force many nonprofits to narrow their missions, leaving families more vulnerable and creating gaps in essential services. Such reductions risk pushing more middle-class households into the ALICE (Asset Limited, Income Constrained, Employed) category or further into poverty.

Earlier this month, Thames traveled to Washington, D.C., to advocate for nonprofits and encourage lawmakers to consider their critical role in future funding decisions. She acknowledged the push for efficiency and collaboration but warned that even optimized networks cannot fully replace the resources being lost. Without adequate support, government agencies could be left to shoulder responsibilities they are not equipped to manage.

The foundation is taking steps to help the sector adapt. MCF is partnering with Manatee County Government to implement Unite Us, a technology platform designed to help nonprofits share referrals, coordinate services, and measure impact more effectively. Thames urged nonprofit partners to share data, highlight outcomes, and adopt tools that strengthen their case for support.

The call also extends to donors and advocates, who are encouraged to give generously and push for policies that protect vital community programs. Foundation leaders emphasize that proactive investment and collaboration are crucial to ensuring the region’s nonprofit network remains resilient in the face of increasing challenges.