North Texas, September 4, 2025
News Summary
Charitable organizations in North Texas are suffering significant funding losses in 2025, with a total of $127 million in funding cuts reported from various sources, including federal and foundation grants. The survey covered 3,000 nonprofit agencies, shedding light on the financial struggles faced by these organizations. Key sectors affected include social services, education, housing, and hunger relief. As nonprofits adapt to these challenges, they are employing strategies to manage their finances and continue serving their communities amidst growing economic pressure.
Dallas
Charitable organizations across North Texas report large funding losses, survey finds
Charitable organizations in North Texas are facing substantial funding cuts and growing economic pressure in 2025, according to a regional survey. A collaborative survey of local community foundations found that nonprofits responding lost a combined $127 million in funding from government sources, foundations, individual donors and other streams. Federal funding declines accounted for nearly $72 million of that total, while foundation grant reductions totaled about $19 million.
Key findings and scope
The survey, conducted jointly by three North Texas community foundations, reached 3,000 nonprofit agencies and received responses from approximately 700, providing a representative sample of the region’s nonprofit sector. More than half of responding organizations reported decreases in funding in 2025. About one-third reported no change, and roughly 14% indicated an increase in revenue.
Immediate impacts and most affected services
The sectors most affected by funding losses include social services, education, youth programs, housing and hunger relief. The North Texas Food Bank projects a $2.5 million loss from its 2025 budget and anticipates a further $9.2 million shortfall in 2026. Despite widespread financial stress, no organization among survey respondents reported an imminent closure solely because of the funding reductions, though many are operating under significant strain.
How nonprofits are responding
Organizations are employing a range of measures to address shortfalls. Common responses include seeking new revenue sources, intensifying fundraising efforts, instituting hiring freezes, drawing on reserve funds, reducing staff hours or positions, and scaling back programs. Some groups reported increased reliance on volunteers where feasible.
Broader regional developments and examples
The funding shortfalls occur amid broader shifts in public policy and funding priorities, including a movement toward community-based services and reduced government support for some programs. Several large and long-standing organizations across Texas have announced layoffs, closures or service reductions tied to federal and state funding changes.
Notable organizational developments in Texas
- Southwest Key Programs will eliminate between 1,200 and 1,300 jobs across Texas after federal contracts for unaccompanied migrant child shelters were discontinued, with more than 1,100 expected in the Houston area and hundreds more in cities including Dallas and Hidalgo.
- Planned Parenthood Gulf Coast is closing clinics and laying off more than 100 staff members due to funding issues.
- The Henry Ford Academy: Alameda School for Art + Design will close permanently due to declining enrollment and reduced federal funding.
- Family to Family Network closed after 35 years of operations because of financial challenges.
- Catholic Charities Fort Worth has elected to continue overseeing regional refugee services amid concerns about a potential loss of up to $200 million in aid to such programs.
- CHRISTUS Health allocated more than $300,000 in grants to East Texas nonprofit organizations addressing regional health issues.
- The Achievement Center of Texas organized a fundraiser to address significant financial hardship and decreased donations; the center’s annual budget is approximately $673,000, with most operations supported by donations and volunteers.
Implications and outlook
The concentration of funding losses in core human services — especially food, housing and youth programs — heightens risks for vulnerable populations. Nonprofits are attempting to adapt through cost reductions and alternate revenue strategies, but sector leaders warn of ongoing instability if funding trends continue. The pattern of federal contract discontinuations and reductions in grant support suggests continued pressure on both large statewide providers and smaller local agencies in the near term.
What to watch next
Observers will monitor year-end financial reports, additional federal and state budget actions, foundation grantmaking decisions, and donor behavior through 2026. The projected additional losses for key service providers, such as the North Texas Food Bank’s anticipated 2026 shortfall, are likely to influence planning and service delivery across the region.
FAQ
What caused the funding losses reported in the survey?
The losses stem from a combination of reduced federal funding, decreases in foundation grants, lower individual donations in some cases, and broader economic uncertainty that has affected multiple revenue sources.
How large was the survey and how representative are the results?
The survey contacted 3,000 nonprofit agencies across North Texas and received about 700 responses. Organizers say the returned sample provides a representative snapshot of regional nonprofit funding trends.
Which sectors are most affected?
Social services, education, youth programs, housing and hunger-relief efforts reported the largest impacts from funding declines.
Are organizations closing because of these cuts?
Among survey respondents, no organization reported an imminent closure directly tied to the 2025 funding losses. However, several organizations across Texas have announced layoffs, service reductions, or permanent closures due to broader funding challenges.
How are nonprofits coping with reduced funding?
Common strategies include pursuing new revenue streams, increasing fundraising, freezing hiring, tapping reserves, reducing staff or hours, and scaling back programs or services.
What can the public expect going forward?
Continued instability is likely if funding trends persist. Stakeholders will be watching year-end budgets, grant decisions, and government funding changes that could further affect service delivery and staffing.
Summary data
| Category | Figure |
|---|---|
| Nonprofits contacted | 3,000 |
| Survey responses | ~700 |
| Total funding lost (surveyed groups) | $127,000,000 |
| Federal funding decline | ~$72,000,000 |
| Foundation grants declined | $19,000,000 |
| Other funding losses (individuals, fees, etc.) | $36,000,000 (approx.) |
| North Texas Food Bank 2025 loss | $2,500,000 |
| North Texas Food Bank anticipated 2026 loss | $9,200,000 |
| CHRISTUS Health grants to East Texas nonprofits | Over $300,000 |
| Achievement Center annual budget | $673,000 |
| Southwest Key expected job cuts in Texas | 1,200–1,300 |
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Additional Resources
- Dallas News: Drop in North Texas Charity Funding
- Wikipedia: Nonprofit Organization
- KLTV: CHRISTUS Health Awards $300K to East Texas Nonprofits
- Google Search: North Texas Nonprofit Funding
- Dallas Innovates: Jensen Project Awards GrantTank Funding
- Encyclopedia Britannica: Charitable Organization
- NBC DFW: North Texas Nonprofit Fights Funding Drop
- Google News: Nonprofit Funding Issues
Author: STAFF HERE DALLAS WRITER
DALLAS STAFF WRITER The DALLAS STAFF WRITER represents the experienced team at HEREDallas.com, your go-to source for actionable local news and information in Dallas, Dallas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the State Fair of Texas, Deep Ellum Arts Festival, and Dallas International Film Festival. Our coverage extends to key organizations like the Dallas Regional Chamber and United Way of Metropolitan Dallas, plus leading businesses in telecommunications, aviation, and semiconductors that power the local economy such as AT&T, Southwest Airlines, and Texas Instruments. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
