Giving to Meet Local Needs
As the effects of federal policy shifts continue to impact our local safety net and nonprofit organizations, funding cuts and reduced services are adding increased challenges. Many community members have reached out and asked how they can give in the most effective ways to address current needs and how the Community Foundation can be a connector between them and local organizations on the frontlines.
At our recent “Giving to Meet Local Needs” session, Director of Engagement and Impact Kevin Heuer shared more about how we support local nonprofits, identify emerging needs, and how generous donors can help bridge the gap with effective and responsive giving.
A Changing Landscape
The signing of House Resolution 1 (H.R. 1) has had dramatic consequences in our communities. The biggest impacts are on health care, food, and housing. With more restrictions on who's eligible, the services many residents rely on have already been cut, scaled down, or will be phased out soon. In Santa Cruz County, up to 21,000 residents will lose health insurance over the next two years, and many will lose access to food assistance programs like CalFresh. Starting July 1, 2026 dental coverage for adult Medi-Cal members with insufficient immigration status will be eliminated.
These shifts are being felt across nearly every sector:
- Healthcare: Rising numbers of uninsured patients and reduced reimbursements for care providers
- Housing: Loss of housing vouchers, reduced federal funding, and changing federal policies
- Food Security: Increased demands on emergency food providers
- Arts & Culture: Production costs remain high while funding is less predictable
- Education & Youth: Disruption of cuts and enrollment decline in schools, fewer partnership opportunities, urge to support families holistically
- Climate & Environment: Rollbacks in climate policy, significant cuts to federal programs supporting climate research and environmental protections
Despite these challenges, there are bright spots. Nonprofits across Santa Cruz County continue to collaborate, innovate, and find new ways to serve our community. In Watsonville, Encompass Community Services recently opened the new Si Se Puede behavioral health center, which hosts a 30-bed residential facility, an outpatient addiction treatment center, and 72 units of supportive housing. Across the county, 200 new units of supportive housing have been built by housing organizations to meet critical needs. Expanded facilities at essential agencies like Grey Bears, Salud Para La Gente, Dientes, and Santa Cruz Community Health are helping meet rising demand for access to food and health care.
Learning from Nonprofits
Through ongoing listening sessions and connection, we’re learning from our nonprofit partners about their needs. Many are facing difficult decisions, including program reductions, restructuring, or even closure in some cases.
At the same time, fundraising dynamics are shifting. Organizations report fewer donors overall but larger individual gifts, which require more intentional relationship-building. Service challenges are compounded by demographic trends. Santa Cruz County is aging rapidly, increasing demand for senior services, while declining youth populations affect schools and youth-serving programs.
Building Trusted Relationships
In a time of heightened uncertainty, flexibility matters more than ever. The Foundation has embraced trust-based approaches that prioritize larger, often unrestricted grants, multi-year funding when possible, and streamlined application processes.
Equally important is what happens after a grant is made. Through “beyond the check” support, nonprofits are connected to other resources, receive technical assistance, get connected to peer learning and networking opportunities. We partner with the organizations we fund to find additional ways to strengthen their ability to respond to evolving challenges.
Flexible Giving Matters More Than Ever
As needs grow more complex, flexible giving is a crucial way to strengthen nonprofit capacity. Funding without a lot of restrictions in how it’s spent allows organizations to adapt quickly and meet emerging challenges. Donor’s gifts to funds like our Greatest Needs Fund or Supporting Immigrants Fund have helped provide immediate support for trusted nonprofits responding to emerging needs.
The unrestricted grants- whether it's housing or food security, or immigrant support - are really great for people who are unsure of what is needed the most and want to help. We trust the Community Foundation to identify that for us and disburse the funding on our behalf.
- Chuck Hawley, Donor-Advised Fundholder
Meeting the Moment Together
By staying informed, giving flexibly, and trusting the expertise of community leaders, donors can help ensure that critical services and timely projects find local support. In a time of rapid changes and new pressures, local generosity can help stabilize our community’s many systems of support for those who depend on them most.
Header photo: Community grantee Salud Para La Gente is working to provide more services with an expanded clinic at the Watsonville Clinica del Valle del Pajaro campus.
