Government Shutdown: What to Do Next
The government shutdown has left many nonprofits scrambling to figure out what’s next. Read on to learn what you can do.
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The government shutdown has left many nonprofits scrambling to figure out what’s next. Read on to learn what you can do.
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When the government shuts down, it’s not just federal agencies that feel the impact – nonprofits across the country are left facing real and immediate challenges.
Delayed grant payments, stalled reimbursements, and uncertainty around funding can quickly snowball into service disruptions, staff strain, and tough financial decisions.
If your organization is feeling the effects, you’re not alone! In this guide, we’ll take you through some steps you can take to protect your operations and crucial mission.
A government shutdown happens when Congress is unable to come to an agreement and enact legislation to keep the government open and funded.
During a shutdown, federally funded programs are impacted, non-essential employees are directed to stop working, and federal agencies cannot spend or approve new funding.
A government shutdown can often lead to compounding issues for nonprofits.
Primarily, shutdowns limit nonprofits’ access to federal funding – it can halt payments on existing grants, slow the process of awarding grants, and limit the amount of support nonprofits receive around the grant process.
Additionally, some organizations might be on contracts set up as reimbursable – meaning the money has already been spent, and they may now have to wait even longer to get it back.
Basically, it can withhold crucial funding at a time when nonprofits need it more than ever.
These limitations may lead some organizations to take out predatory loans that harm them well into the future, when other sources of funding have been restored. Others may have to cut back staff, lessening their capacity now and in the future. Some will end up closing their doors – for good.
All of this impacts access to critical services provided by these nonprofits – and presents major challenges to the people, animals, and places that need their help.
While the shutdown is already underway, your organization can still take action to minimize long-term damage.
There may be some essential workers left to answer questions at any grant-making departments or organizations. Reach out ASAP and ask if you can still submit an invoice for reimbursement and/or secure funds.
If you’re able to reach someone, make sure to thoroughly review your contract terms. If relevant, ask about reimbursement timelines so you understand when your organization might see that repayment – even if that’s after the shutdown is resolved.
Remember to keep track of any delayed reimbursements or outstanding invoices so you know how much your organization is owed.
And lastly, review the agency’s contingency plan. That should outline exactly how the agency will operate during a shutdown. You should also sign up for the agency’s email updates to stay informed.
Your next step is simple: make sure everyone who needs to know hears about the challenges you’re facing due to this impact.
Craft internal communications for staff, volunteers, and board members so they fully understand what’s happening.
Be transparent with staff about how the shutdown will impact them – any pay cuts, additional strain, or different expectations. Leaders should provide resources to support staff members through this time, too.
Next, inform donors about what’s going on and share how this impacts your ability to serve your mission.
And of course, make sure your beneficiaries have all the information they need. If you have to halt any of your services, be sure to communicate alternative options and additional resources.
Assess your programming to determine your priorities. What absolutely must keep running, and what can be put on the back burner?
These key services should be your guiding light for moving forward.
This is a good time to evaluate whether you’ve been a victim of mission creep – when your organization has taken on activities outside of your core purpose, spreading your staff and resources thin.
Now is also the time to lean into any community partnerships you’ve built. We’re all in this together – and if there’s a service you can no longer afford to provide, try to find a similar organization that can help support your beneficiaries, and vice versa.
We know that building diverse funding streams takes time and isn’t a quick fix. But even small steps toward diversification can help both in the immediate crisis and in the long term.
Start by assessing your cash reserves and calculating your operating runway. Specifically, how long can you maintain operations with current funds? Is it three, six, nine months? Longer?
Then assess your budget based on the new approach to programming you established in the step above.
Depending on the length of the shutdown, you may need to take more drastic action to secure your finances. These options include accessing loans to get you through this period, leveraging credit cards, and reallocating resources to keep your mission moving.
Reach out to local foundations and grantors to see if they offer any emergency funds similar to COVID emergency grants.
And of course, now is the time to launch a fundraising campaign. Your existing donors have supported your mission before, and they’re a fantastic resource during challenging times.
But you may also find new donors who perhaps didn’t see the urgency behind your mission until now. Use your networks to reach a wider audience with peer-to-peer fundraising, where your top supporters can fundraise on your behalf.
Don’t forget how important it is to reach out to your members of Congress about what a government shutdown actually means for your ability to get programs and services out the door.
Real examples and stories from the ground make these impacts way more tangible than abstract talking points.
There are different policy perspectives on all sides, but letting your state’s elected officials know what’s actually happening in your community helps them see the full picture of what’s at stake.
That kind of direct feedback matters, regardless of where anyone stands politically.
Lastly, be sure to look after yourself. This year has posed many challenges, and the constant evolving and reconfiguring can be exhausting.
Lean into your community and don’t push yourself too hard.
A government shutdown can be a stressful period for your nonprofit, but you don’t have to weather it alone. With clear communication, smart planning, and a little creativity, you can keep helping those who need it most.
Donorbox is here to support you. Whether you need to launch an urgent fundraising campaign, rally your supporters with peer-to-peer tools, or find new ways to bring in donations, we’ve got the latest features (and 24/7 support) to get you through this.
Sign up for free today to start raising funds in minutes. Plus, check out our Nonprofit Blog for the latest fundraising strategies and know-how.
Brittan Stockert is a Fundraiser Coach at Donorbox with more than 20 years of public-sector experience. She helps nonprofits and social-impact organizations build sustainable fundraising strategies by strengthening donor relationships, improving CRM systems, and simplifying day-to-day fundraising.
She also co-hosts a podcast where she shares practical guidance for nonprofit leaders looking to feel more confident and less overwhelmed.
Brittan serves on the board of an immigrant- and refugee-led nonprofit and volunteers with local mutual aid efforts. She is a mom of two and a dog mom who loves the outdoors. She lives in Seattle.
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