AL NEWS ANALYSIS — July 2025

A review of nonprofit spending in North Carolina shows the Trump administration’s freeze on \$165 million in federal education grants may be warranted. Major recipients like the Boys & Girls Clubs and YMCA spend large portions of their budgets—up to 30–35%—on administration and salaries, with only about 65–70% reaching actual programs. Many of these nonprofits operate primarily in urban areas, meaning rural counties see little to no benefit.

In places like Granville, Vance, and Person counties, there are virtually no YMCA chapters or large after-school programs funded by these grants. Despite being some of the most underserved areas in the state, they are often left out while big-city nonprofits collect millions. Local churches and community groups, which could deliver real results, are rarely included in the funding process.

This misallocation highlights a systemic issue. The Trump freeze has brought necessary scrutiny to nonprofits that appear more focused on sustaining their operations than serving rural communities. Going forward, any reinstated funding should be tied to direct, measurable impact in the areas that need it most.