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Worcester, foundation team up on $3M boost for nonprofits

City pledges $2.5M to help smaller organizations build long-term stability under new “Facing Change” initiative

WORCESTER—In an effort to shore up Worcester’s nonprofit sector amid rising costs and dwindling federal support, the Greater Worcester Community Foundation has announced a $3 million commitment to strengthen small organizations across the city and county.

The initiative, called “Facing Change,” aims to help nonprofits adapt for long-term sustainability through grants, zero-interest loans, and capacity-building programs.

The funding includes a $2.5 million allocation from the City of Worcester, directed toward smaller nonprofits with annual revenues under $500,000. The remaining $500,000 comes from the Foundation’s own Community Leadership Fund, as well as contributions from the Barr Foundation and the Klarman Family Foundation.

“Shifting federal policies and priorities are impacting nonprofits right here at home,” said Pete Dunn, president and CEO of the Greater Worcester Community Foundation, in the announcement. “Amidst the uncertainty, we are committed to helping nonprofits strengthen their operations and adapt for long-term sustainability.”

City Manager Eric D. Batista called the partnership an investment in Worcester’s future. “Our partnership with Greater Worcester Community Foundation enables us to support the organizations that directly serve our residents,” Batista said in the release.

The Foundation is doubling the resources available through its Nonprofit Effectiveness Grants program and its Mergers and Shared Services Fund, which are now accepting applications on a rolling basis.

Two new programs will launch in early 2026: multi-year operating and organizational effectiveness grants for small nonprofits, and a zero-interest loan fund designed to help organizations navigate government reimbursement contracts.

While most of the city funding will remain in Worcester, additional support from partner foundations will allow the program to reach other parts of Worcester County.