Charlotte-area nonprofits face continued funding and operational pressures 

by Mecca E. Howe, Ph.D.

In January, the Charlotte Urban Institute completed the second phase of a multi-year study to understand the impact of federal administrative changes on Charlotte-area nonprofits. Phase two of the study included both a survey that was distributed to local nonprofit leaders and facilitated focus groups. Data from the January 2026 survey was then compared to data from the first phase of the study, conducted in July 2025, to find the results reported below:

Funding Losses:

• Over a third of surveyed nonprofit organizations are experiencing diminishing funding from all sources, not just public funding cuts, including corporations, individuals and foundations. 
• Overall, 24% of leaders in the January 2026 survey reported public funding losses and 36% reported losses from other, nonpublic sources. 
• Organizations serving vulnerable populations were more likely to have lost funding. Specifically, organizations serving individuals with low income, experiencing homelessness, involved in the justice system¹, and/or survivors of abuse or violence were most likely to report funding losses since 2025. 
• Since the July 2026 survey, there was an 11% increase in the number of nonprofit organizations reporting public funding losses and 19% reporting new losses from other, nonpublic funding sources². 

Impacts & Responses:

• Sixty-five percent of leaders reported negative impacts on their financial health related to economic uncertainty and funding changes, while around half report negative impacts on operational stability and service delivery/programming. 
• Sixty percent of leaders reported a greater community need for services and resources–which they are not able to meet due to funding constraints. Nearly 30% are serving fewer clients, an impact largely related to necessary cuts to programming and operations. 
• The most common response strategies to current challenges included submitting new grant applications, changing budget allocations or cutting costs, delaying plans for new programming or purchases, and collaborating with other nonprofits. 
• Beyond funding losses, additional challenges facing nonprofits include perceived censorship, shifting funder priorities away from certain initiatives, increased competition for grants, and growing financial insecurity and economic uncertainty among the population as a whole. 

Needs:

• Flexible (i.e., unrestricted³) and diverse funding was, not surprisingly, the most commonly reported need by organization leaders. Beyond funding, leaders expressed the desire for personnel, partnerships, and marketing support. For funders, specifically, organizations would like to see volunteer support, including the provision of expertise, as well as connections and sponsorships. 

Future Outlook:

• Around 40% of nonprofit organizations in the January 2026 survey expressed concern for the future of their organization, while focus group participants were largely resilient and hopeful. When comparing survey responses among leaders who took both the July 2025 and January 2026 survey, more leaders have become concerned or uncertain since the first survey.  

The study is sponsored by the United Way of Greater Charlotte and the Foundation For The Carolinas. You can learn more about the first phase of the multiyear study here.

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 ¹ Justice-involved individuals refers to individuals who are currently or have been involved with the criminal justice system such as those awaiting trial, convicted of a crime, on probation or parole, or recently or currently incarcerated (Howard et al., 2016).

² For the 60 nonprofit organizations captured in both surveys.

 ³ Restricted funding refers to funding that can only be used for certain purposes of which the grant was approved for, while unrestricted funding does not have restrictions on its utilization.