Meeting the Moment: Navigating the Federal Government Shutdown
As the federal government enters another shutdown, many nonprofit leaders are feeling a sense of déjà vu and urgency. For organizations that rely on federal contracts or grants, even a temporary pause in funding can disrupt operations, delay payroll, and threaten essential community services. But beyond the financial impact, shutdowns test what makes this sector resilient: adaptability, collaboration, and mission focus.
Now is the time for nonprofits to meet the moment — to plan with intention, communicate transparently, and lean on trusted partners and resources. Whether your organization depends directly on federal dollars or serves communities that do, understanding how to navigate this period is essential to maintaining stability and trust.
Below are five resources to help nonprofit leaders prepare, respond, and continue their work during the shutdown.
- National Council of Nonprofits: “Government Shutdown: What Should Nonprofits Do?”
For practical, immediate guidance, the National Council of Nonprofits offers a comprehensive overview of what to expect during a funding lapse. The resource outlines how to assess your organization’s exposure to federal contracts and provides action steps to manage cash flow, communicate with staff, and advocate for swift resolution.
Read more on councilofnonprofits.org
- Urban Institute: “The Federal Government Shutdown Could Compound Financial Insecurity Among Nonprofits”
For a data-driven perspective, the Urban Institute analyzes how funding interruptions amplify financial strain across the sector. This piece is valuable for leaders seeking to understand the broader economic context and how federal uncertainty disproportionately affects smaller, community-based organizations.
- CLA: “What Nonprofits Can Expect with a Government Shutdown”
This advisory blog provides a clear-eyed look at what nonprofit finance teams should anticipate, from reimbursement delays to increased demand for services. It also includes recommendations for strengthening reserves, communicating with funders, and maintaining compliance during uncertainty.
- GrantStation: “Tracking Federal Actions Impacting the Nonprofit Sector”
To stay informed as the situation evolves, GrantStation curates updates on budget negotiations, funding priorities, and program pauses. This is a strong resource for nonprofit leaders monitoring when and how federal dollars may resume, and for identifying emerging grant opportunities once government operations restart.
- La Piana Consulting: “Nonprofit Scenario Planning in an Age of Chaos”
This blog examines how nonprofits can move beyond traditional strategic planning in an era of extreme unpredictability. It offers a framework of “Must Do’s, Won’t Do’s, and Might Do’s” that organizations can use to stay resilient, even when external factors like shutdowns upend expectations.
Read more on scenario planning
Take Action: Advocate for Resolution
Periods of uncertainty like this remind us that leadership is not just about foresight but about collective resilience. At La Piana Consulting, we work alongside nonprofits and foundations to build the strategic clarity, partnerships, and adaptive capacity needed to thrive, even when external conditions shift. Now more than ever, our sector’s ability to meet the moment depends on shared learning, collaboration, and a steadfast commitment to community impact.
While preparation is essential, advocacy remains a powerful tool for change. Nonprofits can help move the conversation forward by encouraging policymakers to find common ground and restore government operations. Use the National Council of Nonprofits’ advocacy template to email your Senators and Representatives. Your message can emphasize the importance of collaboration across party lines and the urgent need to reopen the government so nonprofits can continue serving their communities without interruption.
Excellent resources. Thank you. I have shared email and list of resources with Child Development Resources of Ventura County, Inc. (CDR) Executive Leadership Team. I will be convening a meeting soon with the CDR leadership team to plan “proactively” and discuss further in the event, funding from Head Start, Early Head Start, California State Preschool, and California Department of Social Services (CDSS) and County of Ventura funders should be negatively impacted.