A message from Cortney Nicolato, United Way’s president and CEO
For generations, nonprofits have answered the call, stepping up to serve our communities despite being underfunded by the federal government.
In the 1970s and 1980s, the federal government made the move to transfer the responsibility of delivering social services to nonprofits, citing the rationale as being for “efficiency and flexibility purposes” in having local organizations serve their communities. This shift led to a greater reliance on nonprofit organizations to fill the gaps, all while being funded less to do more. There also was the mindset that donations and community philanthropy could handle the rest.
Fast forward to the present: On Monday, January 27, the Office of Management and Budget advised federal agencies and departments to pause federal grants and loans, highlighting 2600+ grants and programs to be scrutinized. This order was given under the assumption that “The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve.”
Unsurprisingly, this action led to chaos, and even more uncertainty. Nonprofits suddenly couldn’t access federal funds to support EXISTING and legally contracted programs for such things as housing assistance, food security, and healthcare. Some organizations were ordered to stop providing services immediately. And I fear others will not recover from this disruption.
These executive actions have been put into place without clarity or justification. Organizations and states have been scrambling to understand what was happening, while continuing to serve the people that rely on them. And the second you thought you had it figured out… it changed, again.
Yes, the memo has been rescinded, but the actions and intent have not. People’s lives will be altered by these decisions and that is something we cannot lose sight of, especially when the orders are aimed at ensuring our most vulnerable neighbors are the ones to suffer. But make no mistake, the effects of these actions will be felt immediately – by all of us.
Right now, 36% of our state’s budget is federal pass-through funds, and more than 35% of Rhode Islanders seek healthcare and supports from Medicaid. Our kids are cared for and benefit from programs like Head Start, while our seniors and Veterans are feed through programs like Meals on Wheels. Every day, residents access resources through United Way’s 211 and Aging and Disability Resource Center helplines.
The actions we face affect Rhode Island families you’ve never met, but also will have a ripple effect that’ll impact your family, friends, and loved ones. Every federal dollar that does not reach a nonprofit program or service compounds to added stress for Rhode Islanders and their families. They’re also dollars that will not make their way into our economy.
Some perceive the nonprofit sector and the immense number of services it provides to be not worthy, while the truth is quite the opposite. The nonprofit sector is filled with smart and passionate humans. They are the first to help during difficult times, and never back down. They aren’t here for the politics, but for humanity.
I am reminded that United Way of Rhode Island, in its 99-year history, has taken on the “tough things” and supported our great state every step of the way. This time, of course, is no different. We are unwavering in our vision of a Rhode Island where each individual in every community has equal opportunity to thrive.
Our Alliance for Nonprofit Impact, Rhode Island’s nonprofit resource center, is providing up-to-the-minute support for the nonprofit sector. We are assessing the impact of these changes and helping the sector continue to serve.
Our 211 and POINT helplines are supporting Rhode Islanders as they seek to understand how these changes will affect them. We are connecting them to the existing resources.
But we need you and your support. Now.
We need you to call your congresspeople, the White House. Tell them to take action.
Give to an organization that speaks to you. Volunteer your time.
We, at United Way of Rhode Island, need your support. Because together, we can do more than any of us could accomplish on our own.
With appreciation, and in service,
Cortney M. Nicolato
President & CEO
United Way of Rhode Island
To make a gift to United Way of Rhode Island visit: unitedwayri.org/donate