Mainebiz Giving Guide

V O L . X X X I N O. X X I I G I V I N G G U I D E 2 0 2 5 – 2 0 2 6 10 GIVING GUIDE N onprofits nationwide were dealt an unexpected blow early this year when the Trump admin- istration terminated select federal grants. Federal agencies now have broader discretion on whether to cancel grants. Because nonprofit budgets are often set years in advance, these mid-cycle cuts have left many organizations struggling. Inflation and tariffs have driven up costs, while both private and corporate donors have become more cautious. Fund- ing remains stalled just as demand for nonprofit services rises with the ripple effects of economic hardship. In response, many nonprofits are pool- ing resources and forming partnerships to deliver projects and community ser- vices more effectively. The big picture perspective Jennifer Hutchins, executive director of the Maine Association of Nonprof- its, said organizations that once relied on federal funds are now scrambling to cover shortfalls. Many are pausing projects, cutting budgets, and reassess- ing options. She also cites the admin- istration's ideology driven decisions on immigration, climate change, and certain communities as added strain. "Nonprofits are very well accustomed to needing to pivot ways of funding their work, or even their work itself, depend- ing on what might be happening at any given government level. What's different this year is the volume and the some- what arbitrary nature by which some of these decisions and actions are coming down the pike and impacting nonprof- its," Hutchins says. Cuts to SNAP, USDA programs and Medicaid are worsening food insecurity and public health challenges, creating higher demand for nonprofit services, she says. e impact is especially severe in rural Maine, where nonprofits often provide meals and essential resources to seniors and people with disabilities. Government funding is not the largest share of nonprofit budgets, but it plays a critical role in encouraging private and corporate donors. e loss of fed- eral support, combined with economic uncertainty, is making it harder for Maine nonprofits to raise funds. "One thing that we do know in Maine is that there is not enough private fund- ing through the foundations to make up for the impact of federal funding cuts to the state. It's just not feasible," Hutchins says. Partnerships are now more vital than ever. Maine nonprofits have a tradition of collaboration, whether in afford- able housing with municipalities and developers or in the lobster industry with private and public support. Today, organizations are sharing information, creating emergency response funds, and pooling resources to meet rising demand. When asked about her outlook, Hutchins points to the strength of Mainers' civic spirit. Still, she acknowledges the chal- lenges ahead. "It will be a long bumpy road," she says. "I also worry about the impact of serious cuts to USDA or the SNAP program and the consumers of these services, that Mainers are not going to receive certain benefits that they have been receiving, and what that's going to mean for fami- lies and seniors and veterans and all the other folks that get services. I'm wor- ried about who's not going to make it through the bumpy road." Partnership in action It is not often that a theater and a food pantry share the same mission, but that is what happened this July when federal cuts to free food programs prompted a community response. When Rockland-based nonprofit Area Interfaith Outreach saw demand for its food pantry surge over six months while its food supplies dropped by 12%, the Strand eater and community mem- bers stepped in to help. e theater's "Fill the Strand" campaign invited donors to fill every seat with food, school supplies, and diapers for local children, while also C OU R TES Y / GOOD S H EPH ER D FOOD BANK How Maine nonprofits are surviving through partnerships. B y S l o a n e M . P e r r o n C OU R TES Y / S TR AND TH EATER Anne Rogers-Popejoy, executive director of the Strand Theater Good Shepherd Food Bank Stronger together

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