Over the last few weeks, the nonprofit sector has been abuzz about a pause in federal grants and the ripple effects funding disruptions could have on services. This is, understandably, stressful for people at all levels of nonprofit organizations.
Many of us are facing challenging questions. How much runway does the organization have in the event of a funding disruption? How will we adjust our programs? Are we facing the possibility of staffing reductions?
The news changes on a daily (if not hourly) basis, so our organizations, boards, and program staff are remaining nimble and adapting to changing circumstances as they arise.
We must stay in front of our donors and stakeholders and communicate with them consistently and effectively during these challenging times. As you think specifically about your grant funders, here are a few tips to effectively communicate with grantors:
Transparency is Key: If you’re facing potential challenges from disruptions in federal funding, it’s important to be upfront with that. If you’re facing a disruption in services or major programmatic changes, grantors will appreciate candor about your situation. They aren’t merely funders; they’re partners in delivering upon your mission, and sharing these disruptions is a function of your partnership.
Share Your Plan: If you haven’t already, it’s important to map out different scenarios and develop a plan for what your organization will do. Understand what your runway is financially, what changes you would have to make to your programming if federal funding disappeared, and how you would keep your organization afloat if the worst-case scenario happened.
Ask For Advice: Your funders are likely very well connected both to other funders and nonprofit organizations throughout the community. They are connected to all of the conversations that are taking place - and could have some very valuable guidance for your organization. Learn from their experiences and incorporate that as you develop your emergency plan.
Think About Collaboration: A potential funding disruption requires us to think about not only our organizations, but others doing similar work. Who in your community will be affected, and how can you join forces to ensure disruptions in service are as limited as possible? Keep grantors involved in these conversations! They are in a great position to facilitate new partnerships, and their support could be crucial as you develop new joining initiatives.
Put the Community First: No matter the impact a funding disruption is having on your organization, maintain your focus on the people you serve and how they will feel any potential program disruptions. Listen to their stories and understand their needs as you connect with grantors and other stakeholders.
Know Your Audience: Understand the nuances of a specific funder and how best to reach them. Try to understand how a funding disruption will affect their full portfolio of grantees and focus on presenting plans that will be complimentary of any existing efforts they have underway.
These are challenging times for many organizations, but our grantors are there to help us weather the storm and find creative solutions to problems. Private philanthropy will never be able to fill the void created by a loss of federal funding (at least not in the short term), but it can help us weather the storm, stay afloat, and continue serving as many people as possible.
If you’re struggling with messaging and strategy during these challenging times, drop us a line for a free consultation!
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