The article highlights a critical shift in the funding landscape for nonprofits, triggered by a federal freeze threatening over $300 billion in annual support. This disruption has forced many organizations to furlough staff and cut services while facing uncertain future funding. Despite some court interventions, the broader context reflects a flawed funding model which emphasizes short-term, restricted grants. Advocating for a solution, the piece suggests 'enterprise capital'—offering unrestricted, long-term funding enabling nonprofits to develop sustainable business practices and focus on meaningful impact rather than short-term financial survival.
Today's model for funding nonprofits and social enterprises is fundamentally broken, forcing nonprofit leaders to chase restricted funding instead of focusing on systemic change.
The federal funding freeze put over $300 billion at risk, causing nationwide repercussions, from staff furloughs to essential service cancellations across nonprofits.
The uncertainty from the funding landscape has left many organizations fearful of future cuts, despite some courts blocking the initial freeze.
'Enterprise capital' offers a way forward, providing long-term unrestricted funding that allows nonprofits to build sustainable business models.
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