As the uncertainty around federal funding continues, Your Part-Time Controller, LLC is committed to sharing regular updates and other resources with its clients and friends. YPTC’s insights draw on over thirty years of experience providing best-in-class services to nonprofits of every kind.

WHAT NONPROFITS SHOULD KNOW: 

  • Is the funding freeze thawing? OMB’s January 27 memorandum pausing all federal funding was rescinded after a District Court judge granted a temporary stay in response to a lawsuit, though many organizations were still unable to access funds. On February 25, the judge extended this stay through an injunction, forbidding further freezes until the case is settled.
  • Federal funding remains in flux. YPTC’s February 17, 2025 and February 3, 2025 blog posts covered a series of Executive Orders (EOs) and Office of Management & Budget (OMB) directives affecting nonprofits, as well as legal challenges to them. The National Council of Nonprofits maintains a convenient tracking summary and now also offers a Frequently Asked Questions document about potential impacts to nonprofits.
  • Agencies continue to be affected differently. It can be difficult to reach program officers at federal agencies, some of whom are literally and figuratively overwhelmed by the turmoil around them. Patience and persistence are required in equal measures.
  • YPTC will offer new resources. Drawing on its extraordinary expertise with nonprofits, YPTC will produce multiple new resources in the coming weeks and months, including webinars, interactive Q&A sessions, podcasts, blog posts and more. General topics will help to demystify federal funding, while specialized topics may range from strategies for scenario planning to resources for specific sectors. Sign up here to receive alerts.

WHAT NONPROFITS SHOULD DO:

  • Communication is key. Reach out regularly to all your federal funders. While program officers cannot ignore Executive Orders, they may have updates and advice for you.
  • If you are entitled to request any drawdowns on current federal grants, file the request now, as there continue to be delays and hiccups.
  • Determine whether federal funds are the ultimate source for any state or local grants you may receive, or for grants paid through other nonprofits. The Assistance Listing Number (ALN; formerly known as CFDA) should be identified in subaward agreements. If you do not find an ALN but still have questions, check with your funder.
  • If you have received a stop-work order, a suspension notice or a cancellation letter, you may want to seek legal counsel before responding.
  • Prepare rolling cashflow forecasts on a monthly or even weekly basis. Use the forecasts to engage your Board in conversations about scenario planning and revenue diversification. If it appears you will need to bridge a gap, speak with your bank now about a line of credit.
  • Keep yourself informed of developments affecting the state(s) in which your organization operates. The National Council of Nonprofits has a directory of state nonprofit organizations and many other resources. Reach out to organizations in your region or sector as well. Sign up here to receive alerts from YPTC about relevant programs and resources.
  • Consider sharing your story, including the specific impact of the Executive Orders on your organization, with the National Council of Nonprofits. NCN will use the aggregated data in their ongoing advocacy efforts.

 

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