Public funding cuts challenge Charlotte nonprofits

By Mia Gaddy and Mecca Howe, Ph.D.

Federal administrative changes in 2025 led to funding cuts for nonprofit organizations, also known as NPOs. NPOs often rely on federal funding to support programming, either directly or through funding that passes through state and local governments. The Charlotte Urban Institute partnered with the Foundation For The Carolinas and United Way of Greater Charlotte* to survey Charlotte-Mecklenburg NPOs and identify the impacts they experienced as a result of funding cuts, executive orders and additional sociopolitical changes. 

A total of 203 nonprofit leaders participated in the first of the biannual surveys. They represented a broad range of sectors, including arts and culture, housing, food, human services and healthcare, among others.  Survey results showed that 30% (n=60) of NPOs lost public funding in 2025. Sectors with the greatest losses included human services, higher education, food assistance and youth services. Nonprofit leaders also indicated reductions in funding from other nonpublic sources, such as donations and sponsorships, and predicted more losses in the near future.

Why it matters

Loss of funding forces nonprofit leaders to make difficult financial decisions about how their organizations operate at a time when demand for services is increasing. These choices may include layoffs, staff reductions or limiting the number of clients they are able to serve. A large majority of respondents (86%, n=174) reported they experienced negative impacts on their financial health and operational stability since January 2025. If funding losses continue while demand for services grows, the negative impacts will only become greater – not only for our local nonprofits but also for our community.

While Charlotte nonprofits are facing increased challenges related to funding losses and changing interests, they are also resilient. Although 40%  (n=81) of nonprofit leaders in the survey feel uncertain about the future, more than half (53%) remain hopeful and are determined to endure despite these new challenges. 

Next steps

Our team continues to monitor changes and impacts to the nonprofit funding landscape. The second biannual survey was completed early this year (2026), along with a series of focus groups with nonprofit leaders. Updated findings will be shared in late summer or early fall. 

*Additional support for the survey also came from The Gambrell Foundation and Wells Fargo.