Silicon Valley groups help nonprofits navigate federal changes

As nonprofits fall under the bludgeon of President Donald Trump’s federal spending cuts, groups in Silicon Valley are working to provide resources to soften the blow.

The Law Foundation of Silicon Valley is offering up to 10 hours of free legal services to help nonprofits navigate shifting federal grant rules, funding freezes, restructuring and other advice nonprofit leaders are seeking. The Silicon Valley Council of Nonprofits has curated a list of resources to help nonprofits stay informed  on the latest actions from the federal government, navigate scenario and financial planning and more.

“We know that the Trump administration is no fan of the nonprofit sector. So we, right away after the election, started responding,” Kyra Kazantzis, CEO of the Silicon Valley Council of Nonprofits, told San José Spotlight. The organization gathers resources and pertinent information to support local nonprofits, and advocates for policies to create equitable communities.

The law foundation’s nonprofit protection project has helped 35 clients so far navigate problems with federal contracts, as well as internal issues involving employees and board members. It has served nonprofits working to tackle food insecurity, protect immigrants and more. The project was started in partnership with the council of nonprofits and funded by Sobrato Philanthropies and the Silicon Valley Community Foundation with $345,000.

Nonprofits in need of legal counsel can fill out a form on the law foundation’s website and connect with an attorney.

“I think the secret sauce for this particular project is there are a lot of organizations that need a lower barrier to (entry),” Melissa Hollatz, senior counsel for the nonprofit protection project, told San José Spotlight. “Law firms have extraordinary resources, but it’s just difficult. It’s a longer path to get in to see them.”

Nonprofits nationwide have been stretched thin following the federal cuts, according to a survey of nonprofit trends conducted earlier this year by the Urban Institute.

About one-third of nonprofits surveyed reported some level of federal funding disruption, whether it was a cut, delay or freeze. One-fifth of respondents reported losing federal funding. Nonprofits rely on government funding, with the average receiving 28% of their funds from federal grants, according to the Urban Institute.

Twenty-nine percent of nonprofits who experienced funding disruptions ended up laying off staff, according to the survey.

Here in Silicon Valley, Kazantzis said some nonprofits have shrunk or shuttered. Staff are at risk of burnout and are experiencing secondhand trauma from seeing people suffering but not having the resources to help.

“We’re waiting for the worst right now, because the worst hasn’t happened yet,” she said.
Kazantzis said her organization will continue to convene people, put on wellness programs, send out newsletters of the updates on the federal government and provide analysis on how to respond. The group plans to host a conference in April for nonprofits to learn from and support one another.

“I know nonprofits are very resilient,” Kazantzis said. “As these changes and cuts and shrinkages of availability of services happen, nonprofits are going to rise to the occasion, because they always do.”

Contact Joyce Chu at [email protected] or @joyce_speaks on X.