Sioux Falls nonprofits facing funding uncertainty, fewer donations

Megan Raposa -

Simplified: Sioux Falls nonprofits are losing out on millions of dollars due to federal cuts, according to a Sioux Falls Simplified survey of more than a dozen local nonprofits. Even nonprofits who aren't directly impacted by funding cuts are facing financial uncertainty amid economic disruptions as well as an overall decrease in donations.

Why it matters

  • Nonprofits are the safety net for many Sioux Fallsians who are at risk of falling through the cracks – whether it's organizations providing food, shelter, workforce development, youth activities or any number of other services available in the community.
  • Sioux Falls Simplified heard from a wide variety of organizations from newly founded nonprofits all the way to nonprofits that have been operating for more than a century.
  • The specifics vary, and most folks surveyed wished to remain anonymous, but all told local nonprofits reported that they anticipate losing or have lost up to $9.3 million as a direct result of federal funding cuts over the last few months.
    • Every single organization surveyed reported at least some level of funding uncertainty – not unlike how many donors may also feel.
"Uncertainty doesn't make it easy to give," said Jada Dobesh, founder of Selah Space, a holistic wellness nonprofit formed earlier this year.

Tell me more

More than half of the nonprofits surveyed said they receive funding either directly or indirectly from the federal government.

  • Of those nonprofits, a few reported that they're changing how they talk about their work and removing specific references to diversity, equity and inclusion (DEI) efforts as well as references to the LGBTQ+ population.

Two-thirds said these funding uncertainties are affecting how they're delivering services, including:

  • cutting staff,
  • delivering fewer services,
  • looking at service rate increases,
  • struggling to create stability for staff, who are facing regular changes in messaging as to what's going on.
"We live in a time of economic impatience and the need to see immediate returns on investment," said Brienne Maner, president of Startup Sioux Falls, a nonprofit that serves small businesses and entrepreneurs. "As a country, we've lost sight of the long game and the strategic investments that will support us 10/20/50 years from now."

At least one organization, which, again, wished to remain anonymous, is on track to close at the end of the fiscal year if nothing changes.

How can I help?

If there's an organization you rely on or support, you should reach out to them and ask what they need at this moment.

  • Certainly giving money is always helpful, but you may also be asked to advocate for the nonprofits you support by calling South Dakota's congressional representatives who have direct oversight over federal funding decisions.

It's also worth noting that nearly all of the nonprofits surveyed reported feeling at least somewhat supported by the Sioux Falls community – many feeling very supported.