Idaho nonprofits face funding gap as demand for services rises

Idaho nonprofits provide vital services but many are struggling to meet the need.

A new report from the Idaho Community Foundation found more than half of nonprofits served more people in 2025 than the previous year, and 51% could not meet the demand for their services, including Family Promise of the Palouse in Moscow, which serves families experiencing homelessness.

Autumn Shafer, executive director of Family Promise of the Palouse, said the organization has had twice as many calls as usual this summer and has had to turn people away.

“It really is heartbreaking and because we’re doing all we can, we’re not perfect by any stretch of the imagination, but we try to get everybody helped that we can, and turning families away is heartbreaking,” Shafer said.

The Idaho Community Foundation State of the Sector 2026 report highlighted the impact of Idaho nonprofits. They are the fifth-largest private sector employer in the state and contributed $8 billion to Idaho’s economy in 2025. The report showed a funding gap of $200 million, the amount the state’s nonprofits would need to keep up with demand.

Kevin Bailey, vice president of the Impact and Nonprofit Center for the Idaho Community Foundation, said there are many reasons for the strain on the organizations, citing Idaho’s population growth, the lack of affordable housing and uncertainty in recent years with state and federal funding.

Bailey noted the funding drops mean nonprofits are even more reliant on private donors.

“They are doing everything they can to be scrappy, to be efficient and to really just keep their heads above water,” Bailey said. “It’s not about adding new programs or services. It’s about trying to maintain what they’ve historically been able to offer their communities.” Bailey added that people can help by finding a cause they believe in and give either time or money.

Shafer noted Family Promise of the Palouse has been fortunate with the generosity of the Moscow community and its donors, and staff do everything possible to find the funds to help families.

“Every single grant opportunity we can apply for, we do, whether it is government funding or foundations or local or whatever. We’re pretty hopeful that we’ll be able to maintain our funding because we aren’t afraid to ask, and we ask a lot,” Shafer stressed.

The Idaho Community Foundation report showed nearly two-thirds of Idaho nonprofits expect the demand for their services to keep rising in the future.

This story was provided by Northern Rockies News Service, a bureau of the Public News Service.