The Curtis Group Hosts Town Hall on How Nonprofits are Adapting to Government Funding Changes

Posted , by Keith Curtis, President. Topic: Federal Funding Uncertainty, Fundraising, Government, Philanthropy Research & Events.

How Nonprofits are Adapting

to Government Funding Challenges
By Keith Curtis

President, The Curtis Group
As we all navigate a period of uncertainty shaped by executive orders, federal funding freezes, shifting priorities, stock market volatility, inflation, and the unpredictable ripples from this and so much more, we want to provide a space for nonprofits to unite, share struggles, brainstorm solutions and remember that the nonprofit community is powerful and resilient.
Last week, we hosted a virtual town hall discussion with some current and former clients. While we want this and future town hall discussions to remain a confidential space for our colleagues, we also want to be able to learn from each other’s experiences. Throughout the conversation, we were inspired by how these nonprofits are adapting to uncertainty – whether through diversifying revenue, strengthening advocacy efforts or engaging in transparent conversations with current stakeholders. Below are just a few of the ways that your colleagues and friends are navigating these uncharted waters.
What we heard about the current and near-future impact on our colleagues:

  • Due to delays in government funding disbursement and uncertainty around future funding, many nonprofits nationwide have reduced staff, with some even closing offices.
  • Proposed billion-dollar cuts to U.S. Department of Housing and Urban Development’s Homeless Assistance grants, rental assistance vouchers and Community Development Fund, on top of delayed and frozen reimbursements for previously appropriated funds, have created an air of uncertainty as nonprofits are unable to finalize budgets, contracts and predict the level of community need.
  • Medicaid, Families First Funding, Supplemental Nutrition Assistance Program (food stamps) proposed changes will “create a tsunami of need,” which will increase demand for services and create barriers to support from healthcare and social service organizations, nonprofits that partner with schools and entities that support workforce development, among others.
“Proposed changes will create a tsunami of need at my organization and in my community.”
  • In addition to government funding cuts and shifts, some nonprofits are experiencing partners and donors “freezing,” as they wait to see the impact of these ripples on their personal finances.
What you and your nonprofit peers are doing to address uncertainty:

  1. Challenge Grant: One of our nonprofit partners identified and secured a $100,000 challenge grant to encourage increased donations, resulting in donors who are willing to increase and, in some instances, double their current support.
  2. Advocacy Committee: Several other nonprofits have created an advocacy advisory committee composed of current and former politicians whose purpose is to meet with local government liaisons, strengthen relationships, raise awareness of needs and identify opportunities to showcase the organization’s work.
  3. Fundraising Staff: One participating nonprofit had experienced a significant reduction in government support several years ago. In response to funding cuts, their CEO saw a need and opportunity to invest in their development department: hiring two additional fundraising staff to increase private contributions and reduce reliance on government funding, which has set them up to be in a better position today.
  4. Multi-year Pledges: In response to some individual contributors pausing their support, one nonprofit leader recommends asking supporters for multi-year commitments with an emphasis on creating certainty in an uncertain climate. To that end, some private foundations and individuals are digging deep, changing funding guidelines and restricting timelines to meet current needs.

To participate in a future virtual town hall, complete this survey.

Nonprofits are facing unprecedented challenges as government funding remains uncertain, yet your resilience and adaptability continue.

We are here with you and for you.
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