The majority of local nonprofits benefit from at least some federal funding in the form of both direct funds and money that trickles down through state programs and other nonprofits. Although initial funding freezes ordered by the Trump administration in January were paused by a court order, nonprofits are operating under an atmosphere of fear as they wonder if this funding will remain available.

When the initial freezes were announced, Adirondack Foundation President Cali Brooks said there was “deep panic and deep concern” from nonprofits across the region. The foundation sent out a quick survey to their network of nonprofits. Although the survey wasn’t scientific, they found that 64% of nonprofits in the area receive some sort of federal funding and would see a “significant impact” on their programs if that funding was taken away.

Potential funding freezes would affect organizations across the nonprofit spectrum — from groups addressing sustainability to elder services to child care.

“No one’s immune from this,” Brooks said. “It’s going to be touching every single sector.”

However, each organization would be impacted differently depending on the work they do, how much federal funding they receive and what other funding options they have available.

“Philanthropy or generosity cannot replace this type of funding,” Brooks said. “So this is important work, and I think many of the organizations in this region use it responsibly and respectfully.”

According to a study from the Urban Institute, a national research think-tank based in D.C., about 65% of nonprofits in Franklin and Essex counties have federal grants that are at risk. Jennifer Russell, vice president of grants and programs at the Adirondack Foundation, said that social safety net programs that serve the most vulnerable populations are likely to be most impacted by any funding cuts.

–

Organizations in limbo

–

ADK Action has already made some adjustments in response to funding uncertainty. They do not receive any direct federal funding, according to Project Manager Kim Trombly. However, they do receive indirect, or “trickle-down,” funding that comes from the federal government through state agencies.

One of these programs is the New York Food for New York Families grant, which comes from the U.S. Department of Agriculture through the state Department of Agriculture and Markets. ADK Action primarily uses this funding to buy Community Supported Agriculture shares in local farms. This allows them to support local agriculture and then distribute fresh produce to low-income households. These funds also go towards smaller food security programs at ADK Action.

Trombly said that as of Tuesday, they heard they would receive the funds they have already been promised through this program. However, it’s unclear whether these grants will be available in the future.

The other source of federal funding ADK Action uses is for its road salt reduction program. This funding flows from the Environmental Protection Agency through a regional organization, then to the Lake Champlain Basin program and then to ADK Action. They are still waiting for clarification about the continued availability of this funding, as of Tuesday.

Caitlin Wargo, associate director of the Essex County housing nonprofit Adirondack Roots, said their funds seem to be safe in the short term. However, in four to six months when some of their contracts start to renew, they aren’t sure what will happen.

Many of Adirondack Roots’ programs get trickle-down funding from the U.S. Department of Housing and Urban Development, which is dispersed through the state and other nonprofit umbrella organizations. These grants fund their home rehab, mobile home replacement, foreclosure counseling and Section 8 housing choice voucher program.

Adirondack Roots recently received over $1 million in federal funding. These contracts aren’t technically with the federal government, but are with the state. Wargo said they’ve heard that the funding is in the state and they can move forward with their programs, for now.

“In the short term, it is business as usual, with the exception of the time we’re spending staying on top of what we hear so that we can operate with the best information,” she said. “We’re using public funds, so we need to use it wisely. We have to make sure that as an organization, we’re not spending any funds that we can’t recoup. That’s not a position we can be in.”

–

Concerns around reimbursement

–

Many grants for nonprofits are reimbursement grants, which means they spend money first and get reimbursed when they meet their objectives. This process sometimes takes months, even under normal conditions, and now there’s a chance these payments will be further delayed.

“The biggest concern is that there’s a lot of uncertainty if we outlay capital, if we’re going to be reimbursed,” Trombly said. “That’s not to say that’s never happened before, but the scale of the uncertainty right now is really somewhat unprecedented.”

Trombly said that nonprofits are used to dealing with uncertainty — grants come and go all the time — and they are used to having diverse streams of income. In normal circumstances, however, funds are relatively dependable once a contract is signed, and this no longer seems to be the case.

“How do we plan if we get these contracts, and we’re moving through a three-year project and in year two, the contract gets pulled?” Trombly said. “It’s a lot of questions and a lot more risk going forward for future planning.”

She said ADK Action has enough funds to get through the year no matter what happens to the federal grants, and they have launched some additional fundraising campaigns to help build the safety net, particularly for their food security programs.

The Adirondack Foundation is closely monitoring the situation and doing its part to help nonprofits. They’ve responded by helping share stories of the work that nonprofits do, encouraging donors to give more and holding nonprofit board trainings. The potential for collaboration is a bright side to the situation, from Russell’s perspective.

“There’s an uptick of people coming together and having conversations, collaboration and partnership,” Russell said.