Navigating Uncertainty: How Nonprofits Can Thrive Amid Government Shifts

Change is all around us. With each new administration (federal, state and local), there is a risk that priorities will shift. Technological advances, such as AI, are reshaping industries and changing the way we live our lives. Inflation continues to strain the economy, and many local governments are downsizing budgets due to dwindling pandemic relief funds. All these variables impact the funding, operations and long-term planning of the social sector.

While these challenges may seem unprecedented, history reminds us that the social sector has always been a force for stability and progress. Nonprofits have championed community, love over hate, and countless social movements that have changed the trajectory of the United States.

But with every large shift, there is a risk of emotional hijacking. At these times, it’s easy to overreact, blame and catastrophize, or underreact, shut down and numb our feelings with distractions (e.g., social media) for self-preservation. However, neither response serves us, our clients or our communities well.

To be effective, psychologists recommend a measured response?—?and that is exactly what is needed from us as nonprofit leaders in this moment. You cannot avoid AI?—?it is coming. We cannot blame the leaders pushing for change; they have a political mandate. But we can take proactive steps to advocate for our missions, build resilience within our organizations and navigate uncertainty with confidence.

Here are five steps I have shared with the CEOs facing these challenges. I hope they help you, too.

Step 1: Monitor the?Changes

Staying informed is critical. Now is the time to ensure your executive team is watching and learning about possible local, state and federal shifts, so your organization has time for scenario planning.

To stay ahead:

• Sign up for federal updates from the National Council for Nonprofits and your local state association.
• Join advocacy groups in DC and your state capital that are monitoring your specific issue area. It will not only save you time and money in tracking policy, but it also shows strength in numbers to policymakers.
• Leverage webinars and resources. For example, the National Council of Nonprofits did an excellent webinar last Friday on the potential impact of the recent Executive Actions. Additionally, Americans for the Arts Action Fund provides updates on how policy changes are impacting the arts.

Step 2: Reassure Your Staff &?Clients

Your team and those you serve may be feeling anxious about the uncertainty. To ease anxiety, leaders are holding special staff meetings to reassure staff that leadership is monitoring changes ahead. Some are talking to clients and donors about their steadfast commitment to the work and ensuring them that they will continue providing services no matter what. The key is to communicate clearly and often.

Step 3: Update Your Board Regularly on Possible?Changes

Create an advocacy or public policy committee. If you don’t have one, you can leverage your Executive Committee for this function. Either way, it is imperative that your board has a good understanding of possible changes and the steps being taken to address them.

Step 4: Advocate and Take?Action

Advocacy isn’t optional?—?it’s essential. Now is the time to start sharing the work you do with your elected officials and ensuring they understand its relevance to them and the community. Here are some past blogs that could be helpful:

• Elevating Policy as a Priority: How Advocacy Adds Value to Your Organization & the Greater Good
• Can Nonprofits Lobby? The Answer is YES!
• Why Now Is the Perfect Moment to Showcase Your Nonprofit to Policymakers
• The Five C’s of an Effective Policymaker Meeting
• How Coalition Building and Grassroots Campaigns Can Boost Your Nonprofit’s Advocacy

With tighter budgets, we must fight to keep our causes a priority. While social media posts raise awareness, true impact happens when we engage directly with policymakers. And to make progress, all of us?—?clients, board members, volunteers and staff?—?need to join the fight. Additionally, developing a strong case for support?—?backed by compelling data and impact stories?—?will help policymakers and funders see the return on investment in our work.

Step 5: Scenario Plan Against Possible?Changes

As you identify areas that could be impacted by funding cuts, now is the time to consider Plan B scenarios. Additionally, funders in many communities are reaching out to nonprofits with surveys to see who might be impacted and how philanthropy can bridge funding gaps. Be prepared to make your case for why your services are essential.

The social sector is and will continue to be a vital force within our democracy. But we must stay informed, engaged and ready to act. Government needs us, and we need them. Now is the time to speak out and stand together to make a case for why the social sector is an essential part of what makes the United States great. If you have other steps to include, we would love for you to share them.