From The Road Ahead Blog
Ever find yourself multi-tasking while driving? Here’s how it goes for me:
I jump in the car—foot on the brake, push the start button, click the seatbelt, shift to reverse, and start backing up. I check the rearview mirror, then the camera, all while still backing up. Now I glance at the radio station, adjust the volume, check the clock, and calculate how much time I have to reach my destination.
Then comes the school zone—a forced slow-down moment. Next, I’m slowing into a stoplight for a long minute. I pause, take two deep breaths, and wait for green. Five minutes later—another school zone. Slow down from 45 to 35 mph.
The next challenge arrives as I leave the school zone: a sign warns me to slow down even more, to 30 mph, for a curve ahead.
Slow down. Slow down more—because we can’t see beyond the curve. Is something heading right at us? While these signs are meant to keep us safe, it’s easy to get distracted.
Nonprofits are Hitting a Slow-Down Moment
Many nonprofit organizations are having their own “school zone moment”—a forced pause to prepare for change.
It’s hard to ignore the degree of transformation happening in our nation’s capital. While change is expected after presidential elections, this time it feels different—both in its pace and magnitude.
Nonprofits that rely on state or federal funding are now facing uncertainty. Nearly a trillion dollars flows through state capitals as pass-through funding, supporting countless services. But when policies shift, what happens to nonprofits?
Smart Nonprofits are Asking Critical Questions
- How much of our budget depends on state or federal funding?
- If funding is cut, what services will we lose?
- How can we operate with less funding while still serving our communities?
- What alternative funding sources should we explore?
- How do we communicate financial shifts to donors?
- Should we launch a new fundraising event to close the gap?
This is just a short list of the concerns nonprofits are grappling with. And what if funding holds steady this year but changes loom for the next? The cycle of questions must begin again.
Donors: It’s Time for New Conversations.
If you’re a donor, now is the time to engage differently with the nonprofits you support.
After the usual update on services, ask these questions:
- How is the organization preparing for funding shifts?
- What steps is the board of directors taking to navigate uncertainty?
- What role can you play in ensuring sustainability?
Why it Matters
According to the Urban Institute, nonprofits with budgets under $100,000 receive an estimated 13% of their operating expenses from federal funding. For larger organizations, reliance on federal dollars is even greater. With Federal pass-through dollars included, the numbers are fuzzy.
If you think that’s a small number and that it may not matter to your favorite non-profit, then I have another issue for you to consider:
When larger nonprofits lose funding, they often seek foundation grants, increasing competition for local resources. This can leave smaller nonprofits—already stretched thin—struggling to survive.
No Easy Answers or Solutions
- Donors: Ask more questions, think ahead, and support the resilience of your favorite organizations.
- Nonprofits: Engage board members, staff, volunteers, donors, and the communities you serve in planning for the future.
- Everyone: Envision a different funding landscape and start preparing now.
The people who rely on nonprofits—families, neighbors, and strangers alike—are counting on us. Slowing down now can help nonprofits reflect and navigate safely through uncertain times. The road ahead may be challenging; we must work together to keep moving forward.
Like it. Use it. Share it. Comment Below.
