How Policy Changes are Impacting Nonprofits, Their Leaders and the Communities They Serve with Ile Kimoyo
Nonprofits have faced unprecedented challenges this past year. From restrictions on federal funding to attacks on racial justice and equity initiatives, organizations are trying to find their footing under the new administration. Ile Komoyo’s new impact report, “Voices from Our Communities: Understanding the Impact of Policy and Budget Changes,” shares the impacts recent policy and funding changes have had on Washington nonprofits’ leaders, organizations and communities in 2025.
Formerly known as the BIPOC Executive Directors Coalition, Ile Kimoyo is a multi-cultural nonprofit leader collaborative “committed to the healing and restoration of resources in systematically excluded communities.” We spoke with Ile Kimoyo’s co-founder and co-executive director Jodi Nishioka to learn about the report’s findings and hear what funders should know about the new hurdles nonprofits are facing.
“In our report, we looked at three areas: impact on nonprofit leaders, the nonprofit and the communities being served. Across the board, these three areas were negatively impacted, about 80 to 95% of respondents reported being negatively impacted in these areas,” Jodi says. “Nonprofit leaders reported experiencing negative physical and mental health outcomes due to the impact of policy and budget changes on their communities and their organizations. Many of our nonprofit leaders are from the communities they are serving, and these budget and policy changes are impacting them personally, as well. Nonprofit leaders feel uncertain about their future. With the budget cuts, they’re not sure how or if they’ll be able to sustain themselves, their employees, or the services they provide.”
Many of our nonprofit leaders are from the communities they are serving, and these budget and policy changes are impacting them personally, as well.
Jodi
With limited resources at the federal level, many nonprofits have turned to foundations to make up for the loss of federal funding. Jodi understands how the increase in grantee applications has strained both funders and nonprofits. “They tell me they’ve submitted 15 grant applications and received nothing. I understand that frustration. I also think foundations aren’t sure what to do either, or, in some cases, they’re stepping back and taking time to recalibrate,” Jodi says. “And I think the examination at least is a good thing because the current philanthropic landscape is unprecedented. There’s so much fear, especially for organizations working in or with marginalized communities because of the administration’s anti-DEI stance. Some organizations complied early, others completely refused and some are complying gradually, maybe feeling like they’re turning against their values to survive in the long-term. That’s a difficult spot for them to be in, especially if funders are nervous to support their work because of the communities they work with.”
Generally, much of the resources have been redirected to meeting communities’ basic needs, which has reduced support for other areas of work. “The budget cuts on the federal level eventually trickled down to the state level, affecting state contracts and philanthropy at the state level. Funders are now feeling that pressure to fill in the gaps, but they also feel they don’t have the resources to meet all the needs,” Jodi says. “And communities are highly impacted, almost unanimously negatively impacted, especially areas of work like victim services, prevention and capacity building. The funding for that is now essentially nonexistent because so much attention is going towards meeting basic needs.”
During these difficult times, Jodi believes relationships are key. She encourages funders to connect with their grantees and to hear the personal stories from community members who are the most impacted.
We need to work together because we’re stronger together. It’s not funders v. us. That’s not the situation. I think funders are feeling the pressure, too, and so they are trying to respond with a sense of urgency and feel they don’t have the time to check in with community and reflect on both short-term and long-term solutions.
Jodi
“We’ve seen that in the past, where they are doing their best to make rapid decisions in response to the urgency of chaos" Jodi says. "What we know is we need both: urgent funding and taking time to lean into community and focus on authentic relationships that can give funders the insight they need to make sound decisions that will work in both the short-term and long-term. Funders should look at themselves, examine their fears and try to not make decisions based on fear. Our report is one piece of the puzzle of lifting up the voices of the community. There’s real power in human connection and in true voices."
Join us for our Funder Briefing on January 9 to dive deeper into the takeaways from Ile Kimoyo’s report and explore ways funders can better support their nonprofit partners during this time.