Southern Arizona Nonprofits Adapt to Funding Challenges
Introduction
Last fall, the Community Foundation for Southern Arizona (CFSA) surveyed nonprofit organizations across the region to understand how government policy changes in 2025 impacted operations, funding, and service demand. This is the second of two articles examining CFSA’s nonprofit survey. The first article focused on funding pressures, policy shifts, and operational challenges. This article examines the populations Southern Arizona nonprofits serve, the support they need to continue their work, and how they are positioning themselves for long-term stability.
Populations Served
When Southern Arizona nonprofits were asked to identify the primary population they served, most organizations selected the general population, followed by children and youth, young adults, and adults (Figure 1).
Figure 1: Primary Populations Served
Secondary populations served were more specific. Children and youth ranked first, followed closely by economically disadvantaged people and Hispanic or Latino/Latinx populations. Adults, people with disabilities, and elders also appear frequently (Figure 2).
Figure 2: Secondary Populations Served
MAP Dashboard population profiles provide additional detail by age, sex, and race/ethnicity for Arizona’s counties. Youth Disconnection, a newer MAP Dashboard indicator, sits at the intersection of two areas most frequently cited in this survey: young adults and education.
Funding Landscape
Nonprofit budgets in Southern Arizona vary widely, from under $100,000 to more than $2 million, with the largest share falling between $500,000 and $2 million. Private donations account for nearly half of total revenue. Government funding, including federal, state, and local grants, accounts for another significant share. Additional sources include service fees and earned income, miscellaneous income streams, and endowments or investments.
Reliance on government funding creates additional uncertainty given the policy changes in 2025. Organizations that rely heavily on federal or state funding have faced the most uncertainty. Variation in financial reserves reflects uneven pressure across the sector.
Slightly more than half of survey respondents (55%) reported holding between six and twelve months of operating reserves. Another 28% reported reserves exceeding one year, placing them in a relatively stable position. However, 16% of organizations reported having less than three months of operating reserves, a level that leaves little room to absorb funding delays or disruptions. These organizations often serve some of the region's most vulnerable populations, including children and youth, young adults, LGBTQIA+ individuals, and economically disadvantaged communities.
Support Needs
When asked about their most pressing needs, Southern Arizona nonprofits cited core operational concerns, including financial health, operational stability, administrative structure, and service requirements. As shown in Figure 3, the most common response was general operational support, followed by education and advocacy, and preservation of funding. These responses reflect the importance of stable funding in day-to-day operations.
Education and advocacy ranked second among reported needs. According to the Community Foundation for Southern Arizona, many organizations view current challenges as structural rather than temporary and are increasingly looking for policy guidance and sector-wide representation. Other responses suggest that some organizations are preparing for continued constraints.
Figure 3: Top Support Needs of Southern Arizona Nonprofit Agencies
Capacity Building Needs
Looking ahead, Southern Arizona nonprofits identified several areas where targeted investment would strengthen their ability to operate effectively. Funding and development, grant writing, and communications and marketing accounted for more than half of the responses. This highlights a focus for Southern Arizona nonprofits on identifying and securing new funding sources (Figure 4).
Organizations also mentioned internal capacity needs. Interest in strategic planning and board development suggests a focus on longer-term sustainability. Staff wellbeing emerged as another priority, reflecting the importance of the workforce within these organizations. Legal and advocacy support, along with program evaluation, rounded out the most frequently cited areas.
Figure 4: Capacity-Building Support Needs
Community Impact
The demand nonprofits are experiencing reflects broader conditions in the communities they serve. MAP Dashboard indicators provide additional context on where the need is concentrated.
Survey responses point to increasing demand for services, while federal and state funding has grown less certain. The MAP Dashboard includes indicators, such as poverty rate, that illustrate where the need for nonprofit services is concentrated. Figure 5 displays poverty rates across Pima County by census tract and for cities, towns, and census-designated places with populations of 1,000 or more. Boundaries with darker areas indicate communities where the services nonprofits provide would be most needed. Use the drop-down menu to switch between census tracts and places. Areas with low reliability should be viewed with caution, as they have large standard errors.
Maps below are interactive. Use the dropdown menu to select a map.
Figure 5: Poverty Rate for Pima County Census Tracts (2024)
Figure 5: Poverty Rate for Pima County Census Places (2024)
The share of households receiving SNAP or food stamp assistance is another indicator that helps identify where economic need is concentrated across Pima County. Areas with low data reliability, where the standard error exceeds 30% of the estimate, are shown in hatched areas. Hover over any tract to view the SNAP rate and data reliability rating. Use the drop-down menu for Figure 6 to view cities, towns, and designated places with populations over 1,000 or all census tracts in Pima County.
Maps below are interactive. Use the dropdown menu to select a map.
Figure 6: Share of Households that Receive Food Stamps or SNAP for Pima County Census Tracts (2024)
Figure 6: Share of Households that Receive Food Stamps or SNAP for Pima County Census Places (2024)
Housing cost burden and food insecurity follow patterns similar to poverty and often overlap with areas showing higher youth disconnection rates. These indicators align with survey responses showing increased demand and constrained resources.
Conclusion
Southern Arizona nonprofits face ongoing funding and demand pressures. Survey responses and written comments indicate that the sector is making ongoing operational adjustments. Organizations described expanding funding partnerships, sharing services, stretching existing resources, and prioritizing staff stability to maintain their programs.
Nonprofits' responses showed a clear-eyed understanding of what they need during this time of strain: “flexible operating support and capacity-building; trust from funders in their expertise and reduced restrictions on funding; and support for preserving vital programs through short-term bridge funding, mergers, consolidations, scenario planning, and other strategies for long-term resilience.”
Another nonprofit indicated how it was being proactive. “By diversifying income streams, we aim to build a more resilient foundation—one that can withstand funding delays and policy shifts…”
The survey results show a sector under pressure. With stable funding, advocacy, organizational capacity, and continued access to data through tools like the MAP Dashboard, nonprofits can continue providing services across Southern Arizona.
