Central Texas Nonprofits are In Trouble
Changes in grant funding are gravely impacting the future of the local nonprofit sector.
In December 2024, I wrote a blog about the struggling state of nonprofits. Based on the economy, changes in post-pandemic priorities, and the potential changes to federal funding, our local nonprofits were feeling rather uncertain about their financial future.
Now here we are in March of 2025 and those potential funding cuts have become actual funding cuts. In fact, there is so much more financial uncertainty now, that many nonprofits have been forced to shutter programs and even shut down entire organizations.
The intense financial insecurity felt by Central Texas nonprofits is REAL and scary.
A 2025 informal study conducted by One Voice Central Texas of 19 local organizations indicated that at least $65M in federal funding is likely to be lost by Central Texas nonprofits. And this is just the beginning.
Rancho Alegre is a small nonprofit that promotes and preserves Conjunto music, including a record label and an annual festival. Last year, Rancho Alegre was awarded a grant from the National Endowment for the Arts (NEA) to support their 2025 Conjunto Festival. Due to funding changes at the NEA, they assume that this grant is lost - even though they had included the funds in their budget this year. Piper LeMoine of Rancho Alegre says, “It’s important to note that we are tiny and this was a major blow to us. We are grassroots and trying our best to grow and establish a reliable year over year budget…. But this was a major setback for small organizations like us.”
Walter Moreau, the Executive Director of Foundation Communities, recently posted on LinkedIn that the federal government has canceled their health insurance navigation grant, approximately $2.4 million in funding. Moreau added, “This will have a very real impact on families in Austin. Our program enrolled 6,853 Central Texans in health coverage in the 2023-2024 season. Most of our clients have complicated situations and need extra help so that they have coverage that works for them.” For over 35 years, Foundation Communities has provided affordable homes and on-site support services for thousands of families, veterans, seniors, and individuals with disabilities in Central Texas. They are a foundational nonprofit in our community.
Torch Literary Arts is a nonprofit dedicated to publishing and promoting creative writing by Black women. Like many nonprofits, Torch is still feeling the uncertainty of not knowing how the federal funding cuts will impact their work. They do know that in addition to cuts in local funding, they are also seeing cuts to the larger federal funding pots. Black feminist organizations already received less than half of one percent of global funding - and that was before the federal cuts. Amanda Johnston of Torch states, “Individual donations are needed now more than ever. I encourage our generous community to show their values in action through charitable giving.”
With increasing uncertainty around federal and state funding, mixed with losses in local funding, there will undoubtedly be more and more organizations shutting down programs, or even their doors. The recent news that Big Medium closed its doors was a huge blow to the arts in Austin.
Which is why it is all the more important that Amplify Austin Day 2025 be a huge success for the participating nonprofits. This year there are more nonprofits participating than ever before, a significant indication of the financial insecurity gripping the nonprofit sector. Even more important, the funds that these organizations raise on Amplify Austin Day are entirely unrestricted, meaning that the nonprofits can use these dollars for anything they need - including filling holes left by cuts in federal, state and local funding.
Let’s use Amplify Austin Day to show our Central Texas nonprofits that this community stands with them and will support them, ESPECIALLY during these scary and uncertain times. Make your donations now at AmplifyATX.org.