Paz-Cedillos: Stabilize, protect, build — why nonprofits need you

A couple weeks ago, I had the privilege of stepping away to unplug at the S.H. Cowell Foundation Grantee Retreat. Those three days were a welcome reprieve from the chaos of today’s world. On a personal level, I’m exhausted — and from the shared stories of nonprofit leaders in the room, I know I’m not alone.

Federal budget cuts have sent shockwaves through our sector. Many of us are hustling to keep our teams intact, deliver critical services and still hold onto the long-term vision of our organizations. The emotional, mental and financial toll is real.

But within the exhaustion, there’s also clarity — and a renewed sense of purpose.

Sometimes, we need to step away to reconnect with what matters most. At the retreat, I spent time with members of the Si Se Puede Collective — a group of five place-based organizations in East San Jose’s Mayfair neighborhood. We laughed, we commiserated and we reaffirmed what this moment demands: that we stabilize, protect and build.

The local fallout of national cuts 

The Si Se Puede Collective, like many community-rooted organizations, is on the front lines of a growing crisis. Our agencies are:

• Absorbing cost increases without corresponding revenue
• Facing scrutiny from the Department of Homeland Security for serving undocumented families
• Navigating inflation while stewarding newly acquired community assets
• Filling gaps left by the federal government’s retreat from social programs

Meanwhile, San Jose families — many of them essential workers — are being pushed further to the margins. Rents in San Jose remain among the highest in the nation, with average monthly rent hovering around $2,600. The Bay Area is now home to one of the highest rates of income inequality in the nation. The people we serve live with constant precarity, and if support doesn’t come swiftly, we risk losing both trusted community institutions and the residents who rely on them.

And still, we keep building.

We believe our community deserves more than a crisis response. We envision:

• Children who thrive, not just survive
• Households with both financial stability and cultural pride
• Infrastructure owned and governed by those who live in the neighborhood

This vision is not abstract. It is rooted in decades of organizing, activism and mutual aid. And it’s at risk.

To realize this vision — and protect what’s already been built — we need deeper investment from philanthropy.

 Now is the time to step up

At the retreat, which convened more than 80 nonprofit leaders, one message rang clear: philanthropy must do more.

Now is not the time to chase the shiny and new. Now is the time to stabilize institutions and protect the safety net.

Philanthropic foundations are legally required to distribute 5% of their assets annually. That threshold should be the floor, not the ceiling. Here in Silicon Valley — the wealthiest region in the world — we suffer from a tragic contradiction: staggering wealth creation paired with some of the deepest disparities in the nation.

Despite the significant wealth generated in regions like Silicon Valley, a substantial portion of philanthropic funding is directed elsewhere, leading to underinvestment in the very communities that contribute to this prosperity. That must change. It’s time to double down on unrestricted, multi-year general operating support for community-rooted organizations.

The decline of nonprofit leadership — and why that should alarm you

But there’s another undercurrent threatening our progress. We are also facing a quiet crisis: nonprofit leadership is in decline.

Recent reports highlight a growing concern about burnout among nonprofit leaders, with many considering stepping down due to increased pressures and lack of support. Leaders of color, particularly women, often face compounded challenges, exacerbating the risk of turnover in these critical roles.

This isn’t just a talent issue. It’s a red flag. These are the people holding our communities together. If they leave, who will remain to care for our most vulnerable?

For those of us who choose to stay, we’re doing so not because it’s easy, but because we love our communities too much to walk away. But we cannot do it alone. We need support that matches the scale of the challenges we face.

The road ahead

Much like the pandemic years, 2025 feels like a breaking point. Democracy is under attack. A recession looms. Conflict is escalating. And yet, in the face of all this, nonprofits remain the thread holding our social fabric together.

This moment demands leadership — individual, collective interdependent.

We remain focused on the vision. But to stabilize, protect and build, we need others to walk with us. If you’re in a position to help, now is the time.

Because when you invest in community, you’re not just funding a nonprofit — you’re fortifying the future.

San José Spotlight columnist Jessica Paz-Cedillos is the co-executive director at the Mexican Heritage Plaza. Her columns appear every first Monday of the month. Contact Jessica at [email protected] or follow her on LinkedIn.