As Charitable Nonprofits Struggle with Uncertainty, New Report Highlights What’s at Risk for Kentuckians
LEXINGTON, Ky. — Kentucky Nonprofit Network (KNN), the state association of charitable nonprofits, has published a comprehensive impact report highlighting the challenges organizations face as they work to meet the needs of Kentuckians while navigating funding cuts, freezes, and unprecedented uncertainty. The report illustrates the critical role of nonprofit organizations in every community across the Commonwealth and the risk associated with the funding concerns.
Kentucky is the second largest state recipient of federal funding, with several of its counties experiencing some of the highest rates of poverty in the nation. Nonprofits play an essential role in addressing critical issues such as food insecurity, housing assistance, child care, elder care, mental health services, as well as ensuring access to the arts and cultural activities driving tourism. Working in partnership with government agencies, nonprofits are uniquely positioned to provide effective, efficient, and innovative solutions that directly impact the lives of those they serve.
“The funding pauses and cuts facing charitable nonprofits are not just a problem for a few or for ‘someone else.’ This impacts everyone,” said Danielle Clore, KNN CEO. “Every Kentuckian benefits from the programs and services provided by charitable nonprofits, and they are also essential to our economy as employers, consumers of goods and services, strong community partners with local businesses, and key to tourism and attracting businesses to Kentucky. This report underscores the importance of the need for Kentuckians to voice their support for these organizations because when nonprofits are hurting, Kentuckians are hurting. The helpers need help to continue to make Kentucky communities good places to live, work, and raise a family.”
The report identifies four significant areas where uncertainty and funding cuts impact nonprofits’ ability to meet needs in Kentucky:
Effects on Employment & the Economy
Charitable nonprofits are a major economic force, employing one in ten Kentuckians and generating $27.4 billion in annual expenditures and payroll. Federal funding cuts impact nonprofits directly, as well as significantly impact workforce participation in the Commonwealth fueled by nonprofit services, particularly in communities already struggling with high poverty rates, as well as the bottom line of businesses where nonprofits buy goods and services.
Critical Service Delivery
Nonprofits are providing services on the government’s behalf, such helping children who are abused, with 66% at financial risk due to funding pauses and cuts, impacting vital services across the Commonwealth. Government sources account for 33% of annual revenue for Kentucky nonprofits.
Nonprofit Accountability & Transparency
Charitable nonprofits are committed to the public good and reliant on public trust. Oversight of these organizations includes regulations and reporting requirements to ensure accountability, transparency, and responsible use of public and donor funding. To replace lost government funding, private philanthropy would need to increase their giving by a staggering 282% per year, which is not feasible.
Kentuckians Trust Nonprofits
Charitable nonprofits provide essential services that enhance quality of life – 100% of Kentuckians are impacted by their work. Eighty-one percent of all voters trust them to engage in nonpartisan advocacy and address needs that government cannot or should not provide.
