The Struggling State of Our Austin Nonprofits

I am generally a very optimistic and upbeat person - some might say annoyingly so. I am a big fan of looking on the positive side and always moving forward and believing in karma. 

But we have consistently seen a pretty dramatic shift in our community and it is making me very nervous. 

Generally speaking, the pandemic period was relatively financially prosperous for many nonprofits: people had more disposable funds to donate and were feeling more willing to contribute back to a community in need. 

Post pandemic, many nonprofits do not have the additional revenue from compassionate recurring donors, nor from the extra government support. Nonprofits have been struggling - and it is getting more and more acute. Federal dollars are decreasing and there is a great deal of talk about the nonprofit financial cliff. We are already seeing the impacts… 

We spoke to a few local nonprofits on the issue.

At SAFE, changes in the child welfare system reduced child placements, which then reduced income and has now resulted in the closure of both their Children's Shelter and the Transitional Living program. 

Con Mi MADRE, a dual generation organization focused on supporting girls’ journey towards higher education, lost significant funding due to policy changes within Texas. 

Even I Live Here I Give Here, our own nonprofit that runs Amplify Austin Day, recently shuttered other programs, laid off staff and moved to a more affordable office in efforts to ensure our financial sustainability. 

And most recently SIMS Foundation, a nonprofit providing mental health and addiction recovery resources for Austin's music community, announced that it would start a 90-day pause on services while it transitions its service-delivery and operational model for sustainability. A letter from the Board Chair states, “funding support for SIMS has dwindled in recent years, while the demand for services has skyrocketed since the COVID-19 pandemic in 2020.”

Unfortunately, my crystal ball (ok, it's a magic 8 ball!) says that this is only the beginning.

So what is the silver lining? What do we DO about this? You will not be surprised by my answer…

It is time for radical generosity. What does that mean? It means that you are making choices in your life that are not only good for you and for the people around you.

But how?

  • Give back. Whether you give $5 or 5 hours of volunteer time, it makes a difference, especially when we all give back together. AmplifyATX.org is a great place to start.

  • Tell your elected officials about how important it is to support the nonprofit community, about how many people and pets and parks are served.

  • Be an advocate for the organizations and issues you care about, telling everyone in your circle why it is important to you and how to get involved. 

 It is up to us to create the community we want to be. Until such time that the government funds all of the services that our community needs, it is up to all of us to ensure that our community has what it needs. 

And, frankly, that is the kind of community where I want to live!

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