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Dear Colleagues and Friends,
We are being buffeted by federal government actions that impact our work, staff, clients, and all American society. While we currently have a slight reprieve from some of these actions, others are still in place and new ones threaten. We at NFF are taking this moment to assess and prepare as best as possible for what’s next. We are staying close to our clients, talking to our peer CDFIs, and participating in advocacy and learning calls with our sector’s various coalitions. We are also considering what actions we might take to support the sector in this difficult environment. The fight is going to be lengthy, and we all need to muster energy and heart to sustain it.
Here are immediate actions we can all take right now:
3 Actions for Nonprofits:
- Scenario plan. Funding is under threat for many of us with direct or pass-through federal funding. Model out different scenarios, assessing the risk level to different funding streams, and the implications and options should they cease. We offer a free scenario planning tool here that can be helpful; it is part of a series of resources on building resilience during uncertain times.
- As we saw last week, we may experience fits and starts to funding. Cash flow planning is critical. Our cash flow projection template (also free) is another valuable tool as organizations plan for uncertainty.
- Access the many great resources that have been put out there by others supporting the field. Just a few:
3 Actions for Donors:
- Unrestrict your grants. Make any new grants unrestricted, and lift restrictions on existing grants. Your nonprofit partners are going to need as much flexibility as possible as they work to keep helping people while dealing with funding freezes and instability.
- Reach out to your grantees. See who is impacted. Ask what they need. Do whatever you can to give more, to make connections, to be an ally during this time.
- Stay the course on racial equity, and equity writ large. Continue to include organizations that serve communities of color, LGBTQIA+ people, immigrants, and other marginalized populations in your giving.
1 Big Action for Everyone:
In just the past week, we saw the power of fast, coordinated action. Leaders at NCN, APHA, MSA, and SAGE responded with successful legal action immediately after the news of the federal funding freeze. Many others lobbied legislators at every level, as 22 states plus Washington DC also prepared legal challenges to the freeze. While not every entity will choose to participate in a lawsuit, we can all contribute to make coordinated actions powerful:
- Sign on to receive information from the various advocacy groups supporting our sector, such as National Council of Nonprofits, Independent Sector, United Philanthropy Forum, Grantmakers for Effective Organizations, or the many that support specific sectors of work. Sign letters and participate in other actions that come out of these groups, such as calling your legislators to advocate for the needs of the people and organizations we care about when they are threatened. (To find your legislators, visit congress.gov. Then call the Capitol Hill Switchboard at 202-224-3121 and a switchboard operator can connect you directly with their House or Senate office.)
We will continue to contribute to the fight to bend the arc of the moral universe toward justice.
In solidarity,
Aisha Benson and the NFF team
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