The federal government has entered a shutdown, halting routine operations and creating immediate risk for nonprofits that rely on federal funding, contracts, or reimbursements. When cash flow is disrupted, programs stall, staff face uncertainty, and vulnerable communities can lose essential services. While no one can predict how long the shutdown will last, nonprofit leaders can take proactive steps to safeguard their organizations and continue serving their missions.
Here Are the Key Actions You Should Take Now
- Review cash flow and reserves
Analyze how long your organization can sustain operations if federal payments stop. Update cash flow projections for the next 30, 60, and 90 days, factoring in payroll, rent, vendor contracts, and essential program expenses. Identify discretionary costs that could be paused or delayed if funding remains uncertain. - Engage your board early
Your board needs to understand the potential financial and operational impact of a prolonged shutdown. Provide scenario planning that shows how different durations of funding disruption would affect your organization. Early, candid communication helps directors make timely, informed decisions and mobilize additional resources if needed. - Communicate proactively with stakeholders
Transparency builds trust during uncertainty. Keep your staff informed about possible operational changes and funding delays so they’re not caught off guard. Share updates with funders, donors, and partners to signal that you are actively managing the situation. Clear communication can strengthen relationships and support if the crisis deepens. - Evaluate short-term financing options
If your cash reserves are limited, explore potential bridge solutions now rather than waiting for a crisis. Consider lines of credit, emergency loans, program-related investments, or rapid-response philanthropic funding. Acting early allows you to secure better terms and maintain continuity of services without last-minute scrambling. - Document the impact in real time
Track how the shutdown affects your programs and the communities you serve. Record service reductions, growing waitlists, staff furloughs, or other disruptions. Documenting the impact helps with future funding requests, strengthens advocacy efforts, and gives you concrete data to share with partners and policymakers.
Navigating Forward
Periods like this can feel unpredictable and destabilizing, but preparation makes a meaningful difference. Nonprofit leaders who understand their financial position, communicate openly, and plan for funding delays are better equipped to continue serving their missions even when the external environment is uncertain.
At Han Group, we are closely monitoring the shutdown’s impact on the sector and sharing practical insights to help leaders navigate challenging times with clarity and confidence. Our work centers on strengthening financial strategy, building resilience, and helping organizations plan for the unexpected.
If your nonprofit is facing funding delays or uncertainty, we welcome a conversation about strategies to protect your mission and sustain critical services during this shutdown — and beyond. Contact us.
