Planning for an Uncertain Future: How AHF and Our Partners Are Responding to Nonprofit Sector Instability

The nonprofit sector is facing a pivotal moment. Federal policy shifts, executive orders, and proposed budget cuts are threatening the lifeblood of organizations that serve our most vulnerable communities. From basic needs to public health, from housing to environmental resilience—nonprofits are on the frontlines, and right now, many are under strain.

According to a recent survey of San Diego nonprofit executives through The Nonprofit Institute at the University of San Diego:

• 72% of San Diego nonprofits report direct or anticipated impact from federal actions
• Nearly 1 in 3 nonprofits have reduced or ended services
• Over 50% of respondents rely on federal funding; 40% report issues accessing it

If the Congressional tax bill passes with minimal changes, San Diego County nonprofits that depend on government funding could face substantial budget cuts.

The scale of disruption, uncertainty, and financial vulnerability this presents is profound.

These potential reductions highlight the urgent need for proactive contingency planning and the diversification of funding sources. At Alliance Healthcare Foundation, we’ve responded with intention—leaning in with a thoughtful, multi-pronged approach.

AHF’s Response: Action, Coordination and Community

We’ve taken a multi-pronged approach with our grantees and peer funders to address both urgent needs and long-term planning:

AHF launched a weekly funder coordination call which is now led by Catalyst of San Diego/Imperial Counties. As a collaborative, we are coordinating and prioritizing limited funding and avoiding duplication via pooled funding where appropriate. Additionally, we co-fund regional capacity building and technical assistance, and share learnings, trends, and grantee impacts.

AHF hosted executive convenings for 35+ grantees. Each in-person convening focused on a critical capacity building area identified by grantees and responses to a regional Nonprofit Institute survey, indicating the need for:

• Scenario & Contingency Planning
• Budget Scenario Planning; Financial Modeling
• Board Governance & Engagement in Today’s Climate

AHF provided rapid-response grants for “Know Your Rights” workshops, outreach & legal support for San Diego families concerned about their immigration status.

We supported the launch of The Nonprofit Institute’s San Diego Nonprofit Academy, a broad-based/sector-wide, ongoing technical assistance program to be available at no cost to eligible nonprofits.

We helped catalyze a shared recoverable grant pool to provide bridging cashflow during Federal disruption. Stay tuned for information about how to apply for these funds.

We supported the launch of the San Diego Resilient Response Fund as a member of the new Coordinated Regional Response Collaborative. This is an urgent funding resource to help nonprofits and community organizations adapt their operations and build resiliency in the face of uncertainty.

What We’re Learning & Where We Go Next

Out of the wisdom and creativity of nonprofit executives and community members at three capacity building and technical assistance convenings held this year, several ideas have emerged with powerful potential, some of which are already in place or in development:

• A recoverable grant pool or pooled line-of-credit fund for emergency cash flow needs (launching soon).
• A resource-sharing marketplace for nonprofits to exchange fractional staff, event space, data, and communications tools.
• A merger/consolidation fund to support formal partnerships with legal, training, and equity-centered support (The San Diego Resilient Response Fund can be activated for this purpose).
• A unified advocacy strategy, including shared messaging, economic impact data, and storytelling that centers nonprofit value (part of the offerings through the new San Diego Nonprofit Leadership Academy hosted by The Nonprofit Institute).

This isn’t just about surviving the current climate—it’s about reimagining how we build resiliency together.

Listening to the Community

Even before the new administration, AHF was anticipating future capacity challenges amongst its grantees based on informal discussions. Throughout 2024, we deepened our commitment to community engagement by creating multiple pathways to amplify local voices and strengthen our connection to the communities we serve. Regional community convenings, co-hosted by community-based organizations (CBOs) with deep ties to East, South, Central and North San Diego, created space for honest dialogue focused on their community needs, potential solutions, and shared priorities. These conversations culminated in a cross-regional gathering where over 40 diverse community leaders came together to reflect on common themes and surface ideas for lasting change. We greatly appreciate the coordination by the host CBOs for the regions:

• San Diego Refugee Communities Coalition – East Region
• Mundo Gardens – South Region
• Urban Collaborative Project – Central Region
• North County LGBTQ Resource Center – North Region

What We Learned:

Key Themes from Community Engagement:

• Addressing Basic Needs.
• There is a persistent lack of access to essential services, including healthcare, food, and housing.
• Public Health and Environmental Resilience.
• Recognizing environmental and climate resilience as critical public health issues is essential.
• Cultural and Linguistic Accessibility.
• Services across all sectors—mental health, education, and crisis response—must be culturally sensitive and linguistically accessible.
• Community Empowerment.
• Strengthening communities through collaboration, resource sharing, and advocacy is key to fostering long-term solutions.

A Call to Action for Funders and Sector Leaders

We’ve heard clearly from our community:

• Funders must remain steady, adaptable, and open—trusting nonprofit leaders to articulate what they need while offering thought partnership grounded in humility, not control.
• Nonprofit leaders deserve support as they navigate uncertainty, strengthen their funding models, and pursue bold advocacy—work that is best done in relationships of mutual trust, transparency, and shared commitment.

In these uncertain times, we’re committed to acting with both urgency and humility—listening first, collaborating often, and keeping our eyes on long-term impact.

Holding Fast to Our Vision

We hold firm to our belief that everyone has the right to be well. That vision demands that every individual, regardless of background, has the opportunity to live with dignity, wellness, and possibility.

Let’s keep building that future. Together.

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