We Were Made for This—Prepared, Resilient, and Ready to Navigate Any Challenge.
Why I’m Not Worried About the Federal Funding Freeze. Some thoughts from our CEO Mike Servello concerning the government funding freeze
Many of you have seen the upheaval happening in the non-profit sector right now. As an organization that serves other non-profits, we’ve heard from many leaders who are deeply concerned about how the funding freeze has affected their programs—and what the future holds. Even if federal funding resumes, will it come back at the same levels? Will the cost-cutting measures in place now lead to permanent reductions in program funding?
For us at Compassion Coalition, our model remains unaffected because we don’t rely on federal grants or donors to sustain our operations. For over 20 years, Bargain Grocery has been the engine that fuels both our work and our giving. In 2024 alone, we have given away close to $100 million in resources—all generated through our entrepreneurial model.
Three Things to Consider During This Time
1. Be a Need-Based, Not a Program-Based, Organization.
Learn to assess real community needs and focus on meeting them. Funding will always exist for true needs. What people often confuse is that a need is not a program—programs come and go, and so does their funding. But if your organization is directly addressing an ongoing need, funding opportunities will continue to exist.
2. Use Grants to Enhance, Not Sustain, Your Mission.
Because we are self-sustaining, our core operations are fully funded from within. When we do receive grants, they help us scale and expand. For example, the $2 million grant we received from the Governor allowed us to acquire a 150,000 sq. ft. warehouse, making us one of the largest non-profit distribution centers in New York and the East Coast. That investment directly increased our ability to give.
3. Think Entrepreneurially About Your Non-Profit.
Ask yourself: How can we fund our main operations without relying on outside grants? Is there a mechanism within your non-profit that can generate sustainable revenue? Building a self-funding model protects your mission from the uncertainty of government funding and enables long-term impact.
We’re on this journey together. If you have questions about creating a sustainable model for your organization, I’m happy to help.
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