Major Olympia-area nonprofit closes. How does that affect food banks, shelters?
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- United Way of Thurston Co. closes after major fundraising declines.
- Pierce County United Way in talks to take over EFSP funds frozen after Trump took office.
- Nonprofits face a challenging landscape, leaders say
United Way of Thurston County, which stunned the Olympia area earlier this month when it announced it was closing March 31, received some good news on Thursday, the executive director said.
Chris Wells said the local United Way is in talks to have its emergency food and shelter program (EFSP), and one in Mason County (the Mason County United Way also recently closed), taken over by the United Way of Pierce County.
It’s a small step, however.
Although the United Way of Pierce County could potentially administer those federal funds here – the EFSP is a federal program – the Trump Administration froze those funds after he took office, according to Wells and others close to the program.
The federal program, through local nonprofits and other organizations, provides shelter, food and supportive services to individuals and families who are experiencing, or at risk of experiencing, hunger and/or homelessness, according to FEMA.
The current lack of funds for that program act as a reminder of the difficult terrain nonprofits navigate in an era of reduced funding, whether it comes from local donors or at higher levels. Fundraising campaigns at United Way had fallen by more than 50% the past two fiscal years, Wells previously told The Olympian.
“I’m really discouraged by what’s going on across the nonprofit world,” said Jim Cooper, president and CEO of the United Ways of the Pacific Northwest. “Organizations across the country are trying to adapt to changing, evolving donor expectations and rising costs.”
United Ways of the Pacific Northwest serves 32 United Ways in Washington, Oregon and Idaho, providing public policy training and technical assistance, or back office support in Information Technology and finance, he said.
Before the United Way closes here, The Olympian reached out to other nonprofits about the loss and impact to the community.
Thurston County Food Bank
Thurston County Food Bank Executive Director John Ficker said United Way will be missed because they were a solidifying force in the community.
After SNAP benefits (previously known as food stamps) were cut last year by Trump’s One Big Beautiful Bill, followed by the federal government shutdown, United Way undertook some emergency fundraising in the fall that combined some existing funds with newly raised dollars that helped area food banks, he said.
That effort resulted in about $9,000 that was distributed to food banks in Yelm, Tenino and Rochester, Wells and Ficker said.
Although food donations are always welcome, cash is king because food banks have buying power to purchase food in bulk, or to buy directly from wholesalers or local farmers, Ficker said.
That period was a busy time for the local food bank as well, he said.
First-time users and overall attendance soared at the downtown Olympia and Lacey food banks, and Ficker acknowledged he has concerns about the near-term future as the U.S. wages war in Iran and oil prices rise.
“I’m on edge about the potential for the rise in customer count,” he said.
Community Foundation of South Puget Sound
When United Way of Thurston County announced it was closing, it cited the Community Foundation of South Puget Sound as a partner that will handle some remaining funds.
Executive Director Mindie Ruele explained Thursday what that means.
“We will continue to steward the Pam Toal Leadership Fund, a small endowment that supports nonprofit leadership and professional development in our region,” she said in an email. “We have a history of collaboration with the United Way of Thurston County, including through the Thurston County COVID-19 Response Fund, and we will continue to mobilize philanthropic resources during times of disaster or urgent community need.
“We are available as a resource for organizations and donors navigating this transition.”
Pam Toal was a former executive director at the local United Way. The fund totals $47,000 and generates about $2,000 in earnings that are put toward nonprofit leadership, Ruele said.
“The closing of United Way of Thurston County is truly a loss for our community,” she added. “Their leadership, particularly around the ALICE (Asset Limited Income Constrained, Employed) research, helped bring greater understanding to the real and persistent challenges facing working families. They also contributed meaningfully to college and career access initiatives and were a strong champion of local giving. We will miss that important voice encouraging community investment and engagement.”
Nonprofit landscape
Craig Ottavelli, the CEO of Olympia-based OrgSupport, an organization that provides support services to 30-40 nonprofits in the area, shared his thoughts about the nonprofit landscape.
“The closing of United Way of Thurston County is a highly visible symbol of the changes the nonprofit sector has experienced since the pandemic,” he wrote. “The clients I work with, and the organizations I volunteer with, have faced real change and significant challenges.”
He broke down his observations between membership-driven nonprofits and charitable organizations.
“For membership organizations, unless the member base has continuing education requirements, restoring participation to pre-pandemic levels has been difficult,” he wrote. “There appears to have been a shift in attitudes about professional engagement. I am not sure how much of that is generational and how much reflects lingering pandemic caution, tighter finances, or general uncertainty about the future.
“What I do see clearly is that many organizations are still struggling to rebuild and retain membership. The traditional mindset of ‘What can I do for my industry or profession?’ has shifted toward ‘What do I get in return for my membership dollars?’ That is a meaningful change.
On the charitable side, where organizations rely heavily on individual donations and grants, the challenges are similar, he wrote.
“The pandemic caused many donors to tighten their budgets, and while some giving has returned, it tends to be more focused and selective – flowing more to the well-known nonprofits that feel ‘safer’ as a recipient,” Ottavelli said.
The new normal is a constant effort to make ends meet, often relying heavily on volunteer leadership, he wrote.
“People are concerned and saddened by the closure of the United Way of Thurston County, but few are surprised,” Ottavelli said. “The biggest concern I hear is volunteer burnout from the ongoing effort required just to keep organizations functioning while continuing to deliver on their missions.”
Although the United Way is closing here, and there have already been closures in Mason County and Spokane, the United Ways in Pierce and Lewis counties remain strong, Cooper said. And United Way Worldwide is still a multi-billion-dollar organization and viewed as a top-ranked charity, he added.
This story was originally published March 16, 2026 at 5:00 AM.
