What if You Shut Down?

By Clare Jordan

 

Because Congress and the White House were unable to reach an agreement on appropriations legislation for the new federal fiscal year, Americans awoke to announcements of parts of the federal government shutting down on October 1st.

The impact of this federal government closure is yet to be seen, but will no doubt affect segments of the nonprofit sector and particularly, those served by the sector.

• At a minimum, costs of healthcare coverage could increase, ultimately limiting access to healthcare, a serious concern, leading to the impasse.
• Additionally, some nonprofits’ previously approved funding is at risk as President Trump has already twice this year cancelled billions of dollars, rescinding funding approved by Congress.

A shutdown begs the question: what if the nonprofit organizations on which our communities depend shut down?

It is a question worth asking ourselves in the sector at any time (regardless of the current federal shutdown) because it is a thought exercise that delivers important results. Ask yourself: what if the services and programs we provide were no longer funded? What if the organization ceased to exist?

· What difference would it make?

· Who would be affected?

· Who would rally to preserve it? What would it take?

· Would it be missed or would its gap be filled elsewhere?

· Are there opportunities to collaborate, affiliate, or merge with partners?

Asking these questions could be enlightening. Your responses should inform your case for support and how you share your messaging with supporters – both current and potential. It could be a catalyst for innovation, and it could help build important visions, leading in new and valuable directions.

So, what can you do? How is the sector preparing itself?

Here are some experts’ suggestions and resources to help:

“Nonprofits are bracing for significant challenges amid a government shutdown, including delayed federal funding, increased demand for services and operational disruptions,” writes Kristen Donlevy of CliftonLarsonAllen. “Nonprofits should assess financial resilience, communicate with stakeholders and document the shutdown’s impact,” wrote Donlevy. As David Heinen reported this week through the North Carolina Center for Nonprofits: “Various federal agencies have released their contingency plans for the government shutdown. A prolonged government shutdown could lead to lapses in service for many people served by nonprofits and for delayed or cancelled payments to nonprofits that provide services through federal grants and contracts. For nonprofits with federal grants or contracts, the National Council of Nonprofits has a helpful resource on what nonprofits should do to prepare for a federal government shutdown.”

 

We hope that the differences among governmental leaders will soon be resolved, likely with some winners and some losers, but looking hopefully toward a more positive outcome than a long-term and hurtful closure. Meanwhile, it might be worthwhile to ask yourself a few questions.

If you’re left with more questions than answers, you can always call on us: www.capdev.com.

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