South Dakota mental health nonprofit NAMI shuts down

Nonprofit cites 'significant and ongoing financial challenges' as reason for dissolution

Published on Feb. 23, 2026

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NAMI South Dakota, a nonprofit that provided free mental health support to residents across the state, has announced that its Board of Directors made the 'difficult decision to dissolve the organization' due to 'significant and ongoing financial challenges facing the nonprofit sector nationwide', including reduced funding, rising operational costs and increasing financial uncertainty.

Why it matters

NAMI South Dakota was a vital resource for mental health support in the state, offering programs, classes, and services to thousands of individuals and families impacted by mental illness. Its closure leaves a significant gap in mental health resources, especially in rural areas of South Dakota that already face shortages of mental health care.

The details

NAMI South Dakota's phone went unanswered as of Feb. 13, and its website is mostly inactive, with a brief message about support group meetings being canceled. The organization stated the directive does not 'reflect the importance of our mission,' but rather a response to the financial challenges. NAMI South Dakota had provided over 1,500 phone referrals, served 80 individuals at its annual conference, and reached more than 4,700 people through its programs and 2,000 through community events.

  • NAMI South Dakota announced the dissolution of the organization on February 4, 2026.
  • The organization's phone went unanswered as of February 13, 2026.

The players

NAMI South Dakota

A nonprofit that provided free mental health support to residents across the state of South Dakota, and was part of the National Alliance on Mental Illness (NAMI), the nation's largest grassroots mental health organization.

Sheri Nelson

The Executive Director of NAMI South Dakota who informed staff members of the organization's dissolution by email on February 4, 2026.

Brooke Hoffman

The Program Director at NAMI South Dakota who traveled throughout the state, speaking with K-12 students at various schools about mental health, suicide prevention, and other related topics.

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What they’re saying

“We are incredibly proud of the work NAMI South Dakota has accomplished over the years. However, we have been faced with significant and ongoing financial challenges facing the nonprofit sector nationwide, and we have made the difficult decision to dissolve the organization.”

— NAMI South Dakota, Board of Directors (newspub.live)

“It's been a really hard blow for me personally. I'm struggling a bit with my own mental health over it but trying to look forward too.”

— Brooke Hoffman, Program Director, NAMI South Dakota (newspub.live)

What’s next

Additional mental health resources, some of which are free, in Sioux Falls and throughout the state of South Dakota are listed on the 988 Suicide and Crisis Lifeline, staffed in Sioux Falls by the Helpline Center.

The takeaway

The closure of NAMI South Dakota highlights the ongoing financial challenges facing the nonprofit sector and the vital need for sustained mental health support, especially in underserved areas of the state. As the organization dissolves, the community must rally to ensure that those in need of mental health resources and services continue to have access to the support they require.