Simplified: It's not so much the process changing that's concerning – it's the overall funding cuts. That's the tone several local nonprofits took when talking to Sioux Falls Simplified this week about changes to how the city supports them.

Why it matters

  • The city administration is switching up the process for funding services that support at-risk populations, arts and culture, and economic development. Previously, there were individual subsidy agreements with nonprofits, but now there'll be a competitive request for proposals (RFP) process in which the city reviews proposals and awards funding based on stated goals.
  • The switch-up also comes with a smaller pool of funds overall. In 2025, the city is spending about $2.58 million supporting nonprofit partners, according to data presented to the City Council back in June.
    • Meanwhile, the 2026 budget (still pending council approval) proposes spending $1.2 million.
  • Several nonprofit leaders said, while city funding isn't going to make or break them, this loss of city funding would have an impact and, in many cases, come with a decreased ability to provide the services on which folks rely.
"It adds another level of uncertainty," said Betsy Schuster, president and CEO of Active Generations, which received about $63,000 from the city the last couple years. "What we received last year is important to our budget, and if we weren't to receive that, we would have to look at how do we adjust for those dollars not being there."

Tell me more about the new process

The city will have three separate requests for proposals related to the three priority areas, each of which have a handful of sub-goals within the scope of work.

  • Those three priority areas are helping at-risk populations, supporting arts and culture, and supporting economic development.

Nonprofits are encouraged to partner up and submit joint applications, Finance Director Shawn Pritchett said.

"We can only award to one proposal for each of the scope of work (items)," Pritchett said.

Here's a breakdown of the different areas the city is looking to support:

  • Within at-risk populations, the city is looking for proposals that include support for:
    • temporary housing services,
    • transitional housing services,
    • juvenile-focused services for victims of violence and crimes,
    • homelessness prevention and stabilization services,
    • mental and physical health, and addiction services.
  • Within arts, culture and community programming, the city is prioritizing proposals focused on:
    • programming public spaces (specifically city facilities, and programs related to wellness, recreation, arts and literacy)
    • art experiences for cultural tourism and community engagement,
    • promotion and implementation of new and accessible public events with an economic impact.
  • Within the economic vitality and growth priority, the city is prioritizing:
    • industry growth and economic diversification,
    • vibrancy and safety for downtown Sioux Falls.

What's the impact to nonprofits?

The actual request for proposals process won't change too much structurally for nonprofits.

"We used to have to fill out an application (annually), and it was very lengthy," said Madeline Shields, executive director of the Bishop Dudley Hospitality House. "I think the RFP process is going to be a simpler process."

There's also not much concern about an increased focus on accountability and showing outcomes.

"We view this as an opportunity to demonstrate the measurable impact of our work," read a statement provided by Downtown Sioux Falls, Inc. "While the process will look different, our commitment remains the same."

There were also a few organizations, including the Helpline Center and the Sioux Falls Development Foundation, who declined comment on the changes because they're waiting to learn more information.

What happens next?

The city is hosting an informational meeting on its new Community Partners Program (the overall name for the new process) next week.

Interested applicants can learn more during the information session Thursday, Sept. 4 at the City Hall media room. The city will provide an hour for each priority area starting with at-risk populations at 2 p.m., culture, arts and community programming at 3 p.m. and economic vitality and growth at 4 p.m. Learn more here.

Then, the City Council is expected to vote on the final 2026 budget by the end of September, and when the available funding is set the RFPs will be open for applications.

  • Applications will be approved by the end of the year, and funding is expected to be available starting in January.