What Nonprofits Need to Do Before 5 PM Today: Protect Your Federal Funding

Time is of the essence for nonprofits across the country. The Trump administration has recently ordered a freeze on federal funding, affecting public loans, grants, and other forms of aid that many organizations rely on to continue their operations. With this freeze potentially disrupting critical funding pipelines, immediate action is necessary to mitigate risks.

Here’s what your nonprofit needs to do before 5 PM today (01/28/25) to safeguard your resources:

1. Draw Down Available Federal Funds Immediately

If your nonprofit has access to federal funding that hasn’t been fully drawn down, act now. Reach out to your grant manager or financial officer and initiate the drawdown process before the freeze takes effect.

• Check Your Grant Agreements: Review the terms to ensure compliance when drawing funds.
• Contact Fund Administrators: If you encounter any issues, get in touch with federal agencies or fund administrators immediately for assistance.

2. Review Your Financial Contingency Plans

Prepare for possible delays in funding. Assess your financial health to determine how long your organization can operate if funding is temporarily unavailable.

• Identify Cash Reserves: Determine how much you have in liquid assets to sustain operations.
• Prioritize Expenses: Focus on mission-critical programs and operations while postponing non-essential costs.

3. Communicate with Stakeholders

Transparency is key in uncertain times. Notify your board members, donors, and key stakeholders about the situation and the steps you’re taking to mitigate risks.

• Board Briefing: Schedule an emergency meeting to align on your next steps.
• Donor Outreach: Inform major donors about how they can support your nonprofit during this time.

4. Reach Out to Partners for Support

Collaboration can be crucial in navigating challenges. Contact peer organizations, coalitions, or service providers to share resources and strategies.

• Leverage Partnerships: Explore shared services, joint grant applications, or collaborative fundraising efforts.
• Consult Professionals: Seek advice from your accountants, consultants, or legal advisors to ensure compliance and explore alternative funding options.

5. Document Everything

Keep detailed records of all financial transactions and communications related to this funding freeze. Proper documentation will be essential for audits or appeals in the future.

Stay Ahead of Challenges

Federal funding freezes are a stark reminder of the unpredictable landscape nonprofits operate in. Acting swiftly and strategically today can make a significant difference in how your organization weathers this storm.

PLUS Accounting Services is here to assist you in navigating this urgent situation. If you need help drawing down funds, reviewing financial plans, or communicating with stakeholders, don’t hesitate to contact us. Together, we can protect your mission and keep your vision alive.

Let’s act now—before it’s too late.

For any assistance, contact PLUS Accounting Services at [email protected]