6 Tips for Managing the Current Federal Grants Environment

The federal grants environment has been – in a word – “interesting” the last two months. The frequent and often vague executive orders, firings, and court cases have caused chaos and uncertainty for many organizations and foretell massive changes for others. Nearly all nonprofit staff do not know from one hour to the next how their funding will look tomorrow, next week, or next year.

But rather than sit back and let change happen to you and your organization, I recommend that you take an active role – starting immediately – to manage the change rather than let it manage you.

Six things that you can start doing today.

First, stay informed. Absorb unbiased, credible information. Many sectors have advocates or associations that provide legislative updates to keep you informed. For general nonprofit information, consider reading The Chronicle of Philanthropy or information disseminated by the Association of Fundraising Professionals, among others. A few organizations have started websites and hosted webinars to provide current information about the changing federal landscape, including Grants Office, Kim Joyce & Associates, and Bloomberg Government. Sign up for their updates and newsletters and check their sites often as things change.

Second, diversify your funding sources, especially if you rely heavily on federal or state funding since the future of these sources remain in flux and many now come with strings so heavy they can choke your organization and its mission. Engage your local foundations, corporate community, and individual donors in your mission. Explain to your donors and supporters the impact of these changes on your organization and seek their support.

Third, have strategic discussions with your leadership team and board early and often about the likely impact of pending or imminent changes for your organization. Learning organizations who can have open, honest, strategic conversations about the changing environment and how it will likely impact them will more likely survive and even thrive than those who keep their heads in the sand.

Fourth, review your strategic plan to see how the new reality will impact it. If you created your plan before November 6, 2024, it has become outdated. By how much? You have to review it to find out. You do not necessarily need to create a whole new plan but have strategic discussions with your leadership team and board to determine if you need to make some adjustments – and repeat these conversations as supposition becomes reality.

Fifth, advocate for your organization with elected officials. While you cannot lobby for a particular piece of legislation, you can – and should – keep elected officials informed about the impact of the current climate on your organization and the people you serve. As much as they try to stay informed about life in their districts, they cannot know everything, so give them the information you want them to have. Better yet, have your clients reach out to tell them the impact that these funding cuts have on their lives. Better to share real examples than hypotheticals and volume speaks volumes.

Finally, practice self-care. Times of heightened change cause stress – in you, your co-workers, and the people you serve. So take care of you, give some grace to the people around you, and network with others experiencing similar challenges. You may find some comfort in knowing that you are not alone – and ideas to try at your organization.

We ran a 4-part blog series last year about effectively managing change in your organization. If you’ve not read it yet, you might want to check it out and the other blogs we have published on change over the years.

What other tips do you have for working and managing in this federal grant environment?

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