Federal Cuts to Nonprofits Will Hurt Our Community and State

Opinion by Cynthia H. Shabb
Originally Published in the Grand Forks Herald on March 14, 2025

Over the past seven weeks, the president of the United States has signed dozens of executive orders covering a broad range of issues. The president and Congress have also engaged in other actions to cut federal funding. This has created a state of uncertainty for nonprofit organizations. Some federal grants and contracts have been paused or canceled, immediately affecting nonprofit work. There is a lack of information about current and future grants.

Over 300 nonprofit organizations contribute to the social environment in and around Grand Forks by providing countless services to the community. This includes housing, food security, health care, mental health care, social services, domestic violence services, education, immigrant integration, civic and social clubs, sports leagues, fitness centers, arts programs, environmental services, animal welfare, religious organizations, and more.

Nonprofit organizations also drive the economy by being a major employer, engaging high numbers of volunteers, and generating significant revenue for the local economy. Nonprofits pay wages, unrelated business income and other taxes, and are purchasers of goods and services.

It is important to understand the significant impact nonprofits have, not only in our local community, but also in the state. The North Dakota Association of Nonprofit Organizations (NDANO) created a statewide Sector Report in 2022. It reported that there were 3,886 nonprofits in North Dakota who employed 54,953 people, paying $2.6 billion in annual wages. 218,019 North Dakotans volunteered, contributing 15.6 million hours of services equivalent to $377.8 million. Nonprofit organizations have an incredible financial impact on both local and state levels.

The actions of the federal government are forcing nonprofit organizations in Grand Forks and the surrounding region to consider what they will do as their federal funding changes. They have already had to reduce their workforce, reduce and eliminate programs and services, and more reductions may come. Some nonprofits may even have to close their doors. This will put a heavier burden on local communities, states, private grantors, and individual donors to ensure organizations can continue to operate.

Every member of our community benefits from the work of nonprofit organizations in one way or another. It is vital to contact legislators, sharing why local nonprofits are important. Fully executed executive orders and federal funding cuts will have negative impacts on our community. Additionally, each one of us should give what we are able to support nonprofits in our area.
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Cynthia Shabb, of Grand Forks, is the executive director of the Global Friends Coalition. This letter is a collaborative effort of nonprofit organizations in the Grand Forks region who want to promote, protect and strengthen the nonprofit sector.

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