We’re debuting a Q&A series — “Giving Questions” — which will feature conversations on philanthropy between CFNJ’s President, Hans Dekker, and a special guest. These conversations will highlight issues that are top of mind in the philanthropic community, explore trends and challenges, and offer a range of perspectives about giving.
Our first Q&A features Aaron Turner, our Chief Philanthropic Officer, who shares her thoughts on the instability that’s happening in the nonprofit community due, in part, to federal and state funding freezes. If you have suggestions for a topic you would like to learn about, email us at info@cfnj.org.
Instability and Programming Disruptions for New Jersey’s Nonprofits
Hans: Nonprofits have been dealing with service disruptions for more than a year now, mostly due to the federal funding crisis and shifts in national policy. Can you share what you’re hearing from organizations in New Jersey that are trying to maintain their programming and meet community needs despite the crisis?
Aaron: The nonprofit leaders I’ve spoken with — almost across the board — are worried about the basic essentials due to tremendous reductions in state and federal grants, federal contract terminations, and rising expenses. Those typically reliable funding sources are, at best, unpredictable now for many of the more than 40,000 nonprofits across the state.
The pressure to raise more private dollars in this increasingly competitive market, when everyone is scrambling to do the same, is intense. And for many in the social service sector, demand is growing and outpacing their ability to fund urgent services. All of this on top of trying to be innovative and data driven, while often using old systems, is tough.
If you see or know a nonprofit leader, hug them! And if you can support them in any way, ask them how you can help.
Dwindling Funding for the Arts, SNAP and Medicaid Benefits, and More
Hans: Which nonprofit areas are seeing the greatest collapse in funding?
Aaron: While supporting all of our critical frontline nonprofits is top of mind, especially the social services and mental health organizations, I worry about the arts and the environment. We’ve seen dramatic shifts in support across the state that have left these vital areas in particular peril.
Arts organizations do more than display pretty pictures in a gallery or stage music productions. They can boost job economic development and offer mentorship and training opportunities for students. Arts programming can also enhance our well-being, including helping to combat cognitive decline among older adults and alleviate postpartum depression among mothers for example.
We also take it for granted that the organizations that care for and protect our environment will always have the funding they need. In these current times, that support is dwindling and they’re competing with social service organizations for less funding.
Another area that will see a significant collapse in funding is Medicaid and SNAP food assistance programs. State officials project that we will lose billions in federal funding once stricter eligibility rules and work requirements are fully implemented. At this moment, food banks and other community organizations are feeling the strain as they respond and take care of our vulnerable neighbors who’ve already lost some food and healthcare benefits.
About 850,000 New Jerseyans who receive SNAP, including seniors and young children, are and will be directly impacted by cuts. One of our partners, the Community FoodBank of New Jersey, estimates that they would have to suddenly find the resources to double their food distribution to somewhere around 180 million meals to fill the gap. I can’t overstate the ramifications of these deep cuts and how they will devastate our communities in the coming months and years.
Emergency Funding to Sustain Nonprofits and Programming
Hans: What are we doing to ensure more dollars are reaching communities, and how have our fundholders responded?
Aaron: Many of our fundholders are seeing the urgent need and giving more to the causes they’re already committed to, which is a wonderful bright spot. Others are reaching out to us learn more about what areas or nonprofits are most in need.
Last year, at the height of the federal funding freezes that left so many nonprofits in a lurch, we were able to raise over $1 million to support organizations with emergency grants through our rapid response NJ Strong: Emergency Fund. With the help of our partners and fundholders, we provided a safety net for 22 human services organizations.
These nonprofits focus on community health, violence prevention and survivor assistance, and other critical areas. To quote our podcast name, “Jersey – really does – give a damn.”
A Giving Plan That Aligns With Donors’ Values
Hans: For individuals or families that are considering philanthropy, but don’t know where to start when it comes to designing a strategy or building infrastructure to fund a cause, what should they do?
Aaron: Call us! We pride ourselves on knowing and understanding our state; building relationships with organizations on the ground, advocates, state leaders, and communities that are doing incredible work every day; and partnering with fundholders to think creatively about their giving plans.
Our challenges across the state are serious, but we’re just as serious about rising to the occasion and responding to those issues with solutions. Last year was a record year for us; we made 8,900 grants totaling $163 million. We love what we do here at CFNJ and remain committed to making sure that our partners’ giving experience is both joyful and meaningful.