(Photo courtesy of Deschutes Children’s Foundation and Heart of Oregon Corps)
Nonprofits, like many other organizations, are facing a host of changes in 2025 here in Central Oregon, and on a national level. Funding cuts at the state and federal levels have trickled their way down and nonprofits are left to address growing needs, often with fewer and fewer resources. As the cost of living continues to rise, nonprofits will be tasked with an ever-expanding caseload. In short, many nonprofits across the country are simply being asked to do more, with less. So how can nonprofits in Central Oregon continue to commit themselves to their crucial work surrounding childcare, homelessness, addiction recovery and so much more?
Cassi MacQueen, the executive director of Deschutes Children’s Foundation (DCF), says that the future of nonprofit work in Central Oregon will have to focus on collaboration. “Families are facing more complex challenges — housing insecurity, childcare gaps, and behavioral health needs — at the same time resources are stretched thin,” said MacQueen. “Nonprofits are being asked to do more with less, which makes collaboration not just helpful but essential.”
This point is echoed by Cassie Regimbal, executive director of the Council on Aging of Central Oregon. “We also see a growing emphasis on collaboration across the nonprofit sector. Nonprofits are increasingly working together to expand reach, share resources, and combine complementary expertise, allowing us to serve communities more effectively than we could alone. Funders have further reinforced this trend by prioritizing collaboration to qualify for grants. We see this in our own work, partnering with organizations like Seed to Table, High Desert Food & Farm Alliance and NeighborImpact.”
The three main challenges MacQueen called out are workforce shortages, rising operating cost and funding volatility. “Many of our partners struggle to recruit and retain staff because the cost of living here is so high, especially in fields like childcare and behavioral health,” MacQueen said. “Rising costs for utilities, insurance, and maintenance also put pressure on nonprofits, including DCF. Finally, funding cycles can be unpredictable — pandemic-era resources are ending, and philanthropy is shifting.”
These challenges were mentioned by a myriad of other nonprofits. Across nearly every industry, including every industry in the for-profit sector, workforce shortages and related issues have been the most mentioned challenge, by far. It is unfortunately unsurprising that across the nonprofit sector, workforce shortages are also common.
Interim CEO of the Boys & Girls Club spoke on this issue, “Hiring is a persistent challenge. While we have made strides in paying and providing additional benefits for our staff, the cost of living in our area still is a challenge for most. Staffing and payroll costs are most nonprofits’ largest expenses due to the nature of the work. I would love to see the county or City of Bend create a program where nonprofit workers could apply for designated housing that was below market cost.”
Philanthropy is in fact shifting, and Central Oregon is feeling that shift in a few ways. A trend that has been growing for decades lies in the growth of Bend and the finite amount of capital in the area. As Bend grows and the nonprofit sector grows with it, there is increased competition around funding.
“Central Oregon has more than 350 nonprofit organizations, all competing for limited funding,” said Michele Emery, president of the Bend-LaPine Education Foundation. “A clear trend we’re seeing is that donor dollars are increasingly directed toward meeting basic necessities such as food, shelter, and clothing. This shift is largely driven by rising costs of living, housing shortages, and community needs that have become more visible post-pandemic.”
In addition to competition, the trend of donors prioritizing essential services has also been felt across the sector.
A big driving factor for many of the trends and challenges within this article is the rising cost of living. Of the seven nonprofits interviewed for this article, all of them mentioned this in some way. Michael Hancock, the executive director of Bethlehem Inn said, “Nonprofits are being stretched as more individuals and families face homelessness, driven by high housing costs, economic pressures, and local policy changes like new camping regulations. At Bethlehem Inn, we’re seeing more guests with complex challenges — chronic homelessness, mental health needs, and limited access to stable housing. This has pushed us to expand services, deepen partnerships, and secure more flexible funding.”
Ann Schmidt, the VP of marketing for Assistance League of Bend, made a similar point, “As the cost of school clothing and household essentials continue to rise, we expect to see an increase in the number of children and families in need. And likely the value of the clothing vouchers we provide won’t stretch as far, especially during the colder months when cold-weather clothing like shoes and coats are essential. This means we’ll be able to help fewer children, even as demand grows.”
Hancock and Schmidt both mentioned that collaboration will likely be a useful tool as this trend continues. It would seem that as funding potentially freezes up, the nonprofits of Central Oregon are coming together, huddling for warmth and doing what they can to continue to offer their crucial services. A statement from Regimbal from the Council on Aging accurately reflects how our Central Oregon nonprofits are coming together for the greater good.
“Running a nonprofit is different from running a business because success isn’t measured by profit, but by impact. Every decision is centered on how to best serve older adults and their loved ones in our community, even when resources are limited and needs are growing. We’re accountable not only to our board and funders, but also to the people we serve, our volunteers, and the community at large. This requires higher levels of transparency, trust, and a constant focus on mission over revenue.”
Because nonprofits are so reliant on federal and state funding, there is growing concern over how the actions of the current administration will affect (or have already) affected the nonprofit sector of Central Oregon.
From the Bend-La Pine Education Foundation, Emery said, “Budget cuts in education are the greatest challenge facing our sector. In the past, our Classroom Enrichment funding supported innovative educator projects; while we continue to prioritize those, we are now seeing a growing number of requests for CTE supplies, behavior management tools, art replenishments, and other basic classroom needs. To help alleviate this, it’s critical to raise awareness of our organization and remind the community how essential proper funding for education is.”
Kara Tachikawa, the executive director at MountainStar Family Relief Nursery, said the following. “We are keeping our eyes on what the federal budget changes will be at the end of this month (if Congress is able to pass a budget bill), because any federal funding changes that affect state funding will likely trickle into MountainStar’s state contracts. We are super concerned with how federal funding changes will affect the clients of MountainStar and other local nonprofits – limits or requirements placed on Medicaid/Oregon Health Plan mean that many children who come to MountainStar classrooms might lose access to health insurance. Similar limits or requirements placed on food stamps/SNAP benefits means that MountainStar families might lose the ability to purchase food at the grocery store. Our country is on the cusp of changes that will hurt the most vulnerable people in our communities, at the same time that the nonprofit services that could help them are also facing cuts to government contracts. It is a painful back-to-back hit for families and individuals who are already struggling.”
MacQueen at DCF spoke about budget uncertainty, and the growing issue of rhetoric. “Policy uncertainty makes it difficult for organizations to plan long term, and frequent shifts in funding priorities can disrupt the continuity of critical services for children and families. In addition, the public rhetoric around nonprofits sometimes diminishes the importance of the work being done. This can undermine community confidence and make fundraising and advocacy more difficult, even as nonprofits are on the front lines addressing real challenges like childcare shortages, housing insecurity, and behavioral health needs. At Deschutes Children’s Foundation, we see these impacts every day across our 23 nonprofit partners.”
Speaking for Bethlehem Inn and the future of nonprofits as a whole, Hancock said, “The future is one of both challenge and opportunity. Demand for services is likely to remain high, but we’re also seeing stronger collaboration, growing public awareness, and more innovative approaches to addressing homelessness. We believe the future will require more flexible funding, deeper partnerships, and sustained investment in long-term solutions like affordable housing and mental health support. With the right support, nonprofits can continue to be a powerful force for change in our community.”
