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Southern Arizona’s Nonprofits Under Strain

Funding Cuts, Rising Community Needs, and Why Neighborism Matters

About this time last year, I revisited the idea of our volatile, uncertain, chaotic, and ambiguous (VUCA) times. I feel the weight of VUCA in the events unfolding in Minnesota, across the country, and here in Southern Arizona. Along the way, I came across a word that gives me hope: neighborism.

Neighborism doesn’t have an official definition yet, but it captures what we’re seeing in Minneapolis and beyond. It’s a philosophy of mutual care, protection, and solidarity, centered on the well-being of those closest to us, regardless of background. It emphasizes community, inclusion, and shared responsibility. It is the daily choice to show up for one another.

Taking responsibility for our shared well-being is what nonprofits do. As you read this edition of The Steady Saguaro, you’ll learn how the VUCA world is impacting nonprofits in Southern Arizona right now. In the spirit of neighborism, consider how you can show up to help. Taking time to learn about the nonprofit sector and sharing that story is one way. For other practical lessons in neighborism, I recommend the delightful book Change the Recipe: Because You Can’t Build a Better World Without Breaking Some Eggs by José Andrés with Richard Wolffe. Our Solutions-Focused Community Book Club will discuss the book on February 4th if you’d like to explore it with others.

To understand the challenges nonprofits face today, CFSA surveyed organizations across Southern Arizona last fall and partnered with MAP Dashboard, which began as a CFSA initiative, to visualize the results. The findings reveal rising demand for programs even as funding cuts and policy changes put pressure on operations.

More than 40% of organizations reported being affected by federal funding reductions.

15-20% had to lay off staff. Others have reduced hours, left positions unfilled, or implemented hiring freezes.

Most responses came from Pima County, with smaller numbers from Santa Cruz and Cochise Counties. About a third of nonprofits had annual budgets between $500,000 and $2 million, and 19% had budgets between $100,000 and $250,000. These organizations are well-suited for CFSA’s CORE and Comunidad Grants. Their main focus areas were basic human needs and children and youth services, followed by arts, education, and advocacy. These priorities align with local challenges, such as food insecurity, supported by $214,000 from CFSA and local donors.

Read the Full Story

Even amid uncertainty, the dedication of our local nonprofits is inspiring.

While it is difficult to see our predictions about 2025 federal funding cuts and policy changes come true, it validates the decision to expand CORE and Comunidad Grants. It also reinforces our commitment to helping nonprofits meet growing demand for their programs and services.

Learn More about CORE & Comunidad Grants

In 2026, community foundations play a more critical role than ever. By supporting local nonprofits, you help ensure our communities have the programs, resources, and hope they need to thrive. CFSA remains steadfast in this work, making a tangible difference across Southern Arizona every day.

Jenny Flynn
President & CEO
Community Foundation for Southern Arizona