PROVIDENCE – United Way of Rhode Island Inc. accelerated its final round of a three-year cycle of Community Impact Fund grant payments, totaling more than $1.5 million, to support 41 nonprofit organizations facing funding uncertainty.
The final round of payments is part of an approximate total of $10 million awarded to
45 organizations over the three years, which began in 2023. Grant amounts ranged from $51,000 to $75,000 annually.
United Way on Tuesday announced that it had distributed half of the final grant amounts – $37,500 to 40 organizations and $25,500 to one organization – three months ahead of schedule. Traditionally, the disbursements are made in early July, the organization said.
The remaining four organizations – Inspiring Minds, HousingWorks RI, Economic Progress Institute and Rhode Island KIDS COUNT – will receive their full grant payments in July.
United Way officials said the grant payments were distributed earlier than normal in response to concerns about nonprofits either receiving reduced federal funding or having their funds frozen outright. Such actions would impact the organizations’ operations, where demand for services is already high, the organization said.
United Way said that according to a recent nonprofit sector survey, 42% of organizations have less than three months of cash reserves. Additionally, 96% of organizations that provide support for basic needs reported higher demand now than during the COVID-19 pandemic.
“Many organizations are navigating extraordinary demand while operating on razor-thin margins and with minimal reserves, both of which have been exacerbated by the funding freeze and ever-evolving policy changes at the federal level,” Nancy Wolanski, director of United Way’s Alliance for Nonprofit Impact, said in a statement. “Cash flow is a critical issue for nonprofits that can impact essential programs and services. Our community needs us to step up, and so we are.”
(UPDATE recasts the lead, adds grant amounts in the third paragraph, plus minor changes throughout.)
James Bessette is the PBN special projects editor, and also covers the nonprofit and education sectors. You may reach him at Bessette@PBN.com. You may also follow him on X at @James_Bessette.