As LA County Restructures Homeless Services, the Social Impact Sector Calls for True Partnership
Nonprofits are the heart and hands of LA’s homelessness response—and must be central to any lasting solution.
On April 1, 2025, the Los Angeles County Board of Supervisors voted 4–0 to pull hundreds of millions in taxpayer funding from the Los Angeles Homeless Services Authority (LAHSA), citing mismanagement and a lack of accountability. The County will instead create a new department to manage homelessness response, modeled after the Department of Health Services’ Housing for Health program. By early 2026, the new department will absorb LAHSA’s current budget, estimated at over $1 billion, and transfer hundreds of County employees to oversee the effort.
While the need for reform is clear and timely, this shift highlights the importance of including local service providers and the social impact sector in decision-making. Nonprofits—who are on the front lines of LA’s homelessness response—bring critical experience and insight, yet were not engaged in this process. Moving forward, a transparent plan for delivering stable, timely funding to organizations on the ground will be essential to ensure they can continue meeting urgent community needs.
At the Center for Nonprofit Management, we work closely with the very organizations being impacted. These groups, especially smaller, community-based nonprofits, are already navigating rising demand, delayed reimbursements, and deep financial uncertainty. The 2025 L.A. wildfires only magnified these strains: structures and resources were destroyed, emergency expenses soared, critical fundraising events were canceled, and regular funding cycles were disrupted. Many nonprofits were left in limbo, forced to scale back services or risk closure.
As the County moves forward with a new system, we must not repeat the mistakes of the last one.
“Nonprofits are holding communities together in times of crisis, but they can’t keep doing more with less—and waiting months for reimbursements. Real progress on homelessness and recovery requires trust, coordination, and timely support.”
— Angelica Frias, Vice President of Action and Engagement, Center for Nonprofit Management
Make no mistake, these are structural flaws that hinder progress. If the new department is truly going to center “accountability and results,” it must begin with how we treat the nonprofits delivering the services. That means:
- Moving toward upfront funding models where feasible
- Ensuring timely and transparent reimbursement processes
- Offering technical assistance and capacity-building for smaller organizations navigating complex funding systems
- And above all, recognizing that nonprofits are not vendors—they are mission-driven partners vital to our shared goals
We remain committed to partnering with Los Angeles County and community leaders to create a system that delivers real, lasting solutions. In the weeks and months ahead, we will closely monitor this transition and continue to be a staunch advocate for any nonprofits affected.
CNM envisions a thriving social impact sector that is a cornerstone of the Southern California economy—and that vision can only be realized when we center partnership, equity, and sustainability. By prioritizing collaboration, we can transform this moment of disruption into a true turning point—one that drives lasting change for the communities we serve.
About the Center for Nonprofit Management
The Center for Nonprofit Management exists to support a thriving social impact sector through research, convening, engagement, technical assistance, training, and advocacy. We envision a thriving social impact sector that is recognized as a critical pillar of a caring and inclusive regional economy in Southern California. For 47 years we have served as a trusted partner to Southern California’s nonprofit leaders and organizations.
