The nonprofit world was stunned by the Trump administration’s January 27 memo to pause all federal funding. And while some breathed a sigh of relief when the order was halted by a lawsuit and then rescinded by the administration, experts warn that nonprofits are still in the danger zone.
That’s because the Trump administration has vowed to cut federal funding to a variety of programs — such as those involving diversity and reproductive rights — and generally trim government funding. Its willingness to cut funding, experts say, is a sign that nonprofits need to take this moment as a wake-up call and rethink their plan for financing their operations — including reserve policies, fundraising strategies, and business models. They also will need to lean into advocacy and take care of their staff as new issues keep cropping up.
My colleague Rasheeda Childress spoke with leaders and fundraisers around the country about how nonprofits should prepare for the coming weeks and months. Now is the time for boards and executive teams to work together on scenario planning and cash-flow analysis, says Sarah Krasin, principal and managing director at CCS Fundraising, a consulting firm.
Karen Houghton, CEO of Infinite Giving, a firm that helps nonprofits manage finances, says in these conversations, also talk about reserve funds and make a plan to shore those up, even if they’re small, or start one if you haven’t already. This is tough work that nonprofits will be chipping away at for the coming months — if not years. Read Rasheeda’s full article, “‘It’s Not Over': Steps to Rethink Fundraising After Trump’s Spending Freeze,” for more tips on where to start.
Take care,
Emily Haynes
Senior Editor, Nonprofit Intelligence
