By: Maddy Bynes-DeVaney, MPP
"What a week!"
"I haven't felt this way since the first days of COVID."
"I don't even know what to tell people."
"My phone is ringing off the hook!"
If you've been saying something along the lines of what is quoted above, you're not alone. Clients, community members, nonprofits, family, and friends have all contacted me over the past week. With the new Presidential Administration beginning last week, a slew of Executive Orders, memoranda, and publications have come out up-ending many of our day-to-day businesses and client services - wrecking havoc on staff moral and garnering questions about how your organization will proceed in this new landscape.
There is (or very soon will be) another blog post on my website that discusses the impact of President Trump's Various Executive Orders, but none have caused such widespread confusion and panic as the Office of Management and Budget's Memorandum to Agencies that would pause or freeze federal funding until further analysis is completed for coordination with the President's agenda. We've had so much change in the last 24 hours. First there was the initial memorandum, then there was a clarifying press conference from the White House Press Secretary and another memorandum clarifying that this freeze will not impact Medicare, Social Security, Medicaid, and SNAP. Then minutes before the memorandum was set to be enacted, a federal court stepped in putting an injunction on the action until Feb. 3. Finally on January 29th, the Office of Management and Budget rescinded their memorandum, with the White House Press Secretary stating that this is an effort to move around the Court's injunction. And, still today, I'm hearing from nonprofits and their leaders that some are locked out of payment portals and others are being asked to stop work on their contracts altogether.
Where we are today (January 29, 2025)
There is no longer an immediately looming pause or freeze on federal funding to local agencies, localities, or states. This is good news for the nonprofit sector, as so much of the funding nonprofits receive is impacted by the federal government. The bad news? Nonprofits can still be affected. Just because there is not an order to pause funding from the federal government, does not mean that your funding is safe. President Trump's White House and Office of Management and Budget have indicated that they intend to continue their analysis to root out DEI and environmental activities in federal grants and contracts. Though we don't know next steps entirely, we do know that there is a high likelihood that we haven't heard the last of this, and we need to make sure all of our organizations are prepared both through operations and through advocacy.
As a leader in my organization, what can I do?
If you're a leader in a nonprofit organization, either on a Board of Directors or on an Executive Team, the crisis may have subsided, but now is the time to analyze, plan, and prepare. Here are some generalized items to consider for the coming week:
Work now to draw down any federal funding that you can while there is stability to do so. If you're sub-contracted through the state, city, or county governments, remind them of the need to draw down as much federal funding as possible.
Make sure you are up to date on all reporting requirements with your local, state, and federal funders. If you have any late invoices, billing, reimbursement, or report, make it a priority to get those completed by the end of the week.
Review all of your government contracts, specifically for information related to diversity, equity, and inclusion, immigration, or environmental conservation. Make sure you understand what the terms and conditions of your federal funding.
Plan enough cash flow for at least one month of operations in case there are any pauses or unexpected circumstances.
Review your commitments to diversity, equity, and inclusion with your Board of Directors and executive staff. These efforts are heavily targeted at reducing discussion and progress in the diversity, equity, and inclusion space. Organizational leadership should have proactive and strong conversations about how any changes in funding will effect marginalized communities, and how to best uphold your mission, vision, and values during these times.
Advocate! We need you to advocate. Your voice needs to be loud and clear with your Members of Congress. It is critical, now more than ever before, that Members of Congress understand not just the impact your services have, but the impact you have as an employer on the economy.
Ideas for Advocacy
At Bynes Consulting Group, we specialize in connecting nonprofits to government. Nonprofits do amazing work, but I've noticed throughout my career that they are often hesitant to get involved in advocacy, public policy or lobbying. The reality is that it can be a little scary, difficult to begin, and hard to know what the legalities around 501(c)3 advocacy and lobbying are. For more information around lobbying and advocacy as a 501(c)3 organization, please read our blog post. If you're looking for further support in talking with your Board of Directors, understanding various public policy topics, or preparing documents, we can help! Here are some general ideas to get you started in your advocacy:
Write letters to your Members of Congress about the impact losing funding would have on your organization and the people and communities that you serve. Under the Constitution, Congress is responsible for appropriating funding, and it is important that they know the impact the Administration is having on the nonprofit sector, your organization, and the people that you serve.
Invite Members of Congress and their staff out to your facility! Show them the amazing work that you do every single day, and let them see first hand the lives that you touch.
If your work is more dispersed in the community, have clients create video testimonials showing the impact that your organization has on their lives.
Join a local, state, or federal advocacy organization's mailing list to learn more about how public policy impacts the work that you do.
Post vignettes of your organization's success on social media.
The first two weeks of the Trump Administration have been chaotic and hectic for the nonprofit sector, but remember that cooler heads prevail. During these difficult times, take time for yourself and your family. My team and I are always happy to help talk through options for your organization.
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