The government is shut down. Here’s our survival guide for nonprofits
Well, folks, the government shutdown is well underway. And with no immediate resolution apparent, nonprofits everywhere are left wondering how to navigate the situation.
Here’s how to keep calm and carry on.
How long will the 2025 federal government shutdown last?
Congress originally needed to pass an appropriations bill to pay for government operations by October 1, when previously appropriated funding ran out. When that didn’t happen, the U.S. government shut down.
The shutdown will continue until both the House and the Senate can pass a new funding bill. But while Republicans hold majorities in both chambers and could likely move a bill through the House, they lack the 60 votes needed to pass most legislation in the Senate.
That’s where things get complicated. Senate Democrats say they won’t help Republicans end the government shutdown unless Republicans agree to extend the Affordable Care Act insurance subsidies set to expire at the end of the year.
Democrats also want guarantees that the Trump administration will not continue to attempt to block funding that has already been ordered by Congress.
So far, there have been few signs of a deal, although that could change quickly as political pressure rises. Back in 2018, however, the shutdown lasted five long weeks, and nonprofits should be prepared for a similar situation to unfold now.
How can nonprofits navigate a shutdown?
If you run a nonprofit, you already have excellent crisis management skills. But here are a few strategies to help you ride out the storm with your dignity — and sense of humor — intact.
1. Assess the impact
Dust off those contingency plans and run through the different scenarios. How much of your funding comes from Uncle Sam? Do you have enough reserves to keep the lights on and keep services running if the checks stop? Will you need to furlough staff? Should you practice your “We’re all in this together” speech in front of the mirror?
2. Seek new funding streams
Why wait for federal funds when you could be the next fundraising rockstar? Go after foundation grants, court individual donors and launch a bake sale that rivals the Pentagon budget. Look for program tweaks that could bring in revenue. Or, why not join forces with another nonprofit and become a superhero duo for maximum impact?
3. Talk to your team
The shutdown is a big deal for your whole team, so you should talk about it. Gather the team and share what you know, even if it’s just, “I have no idea what’s happening, but here are some donuts.” Honest communication builds trust. And you’ll need trust if you’re asking folks to work miracles on a shoestring.
4. Collaborate like a pro
No nonprofit is an island — especially during a shutdown. Reach out to others in your field, local government or even the competition (desperate times!). Pool resources, share best practices or just commiserate over coffee. Remember: There’s strength in numbers, and also in group therapy.
5. Renegotiate with vendors
With no immediate end to the shutdown on the horizon, now’s the perfect time to charm your landlord and other key vendors (if you haven’t already started). “How flexible is your payment schedule?” you’ll ask, with a winning smile. Odds are, they know the drill and would rather work with you than chase you down.
6. Ready the (very) fine print
Time to revisit your grant and contract terms. If you have to pause services, what happens? Will you need to file paperwork changes? Is there a clause labeled “Acts of Congress?” Be prepared, and keep all those emails — you might need them when things get back on track.
7. Document everything
When the going gets tough, the tough get … paperwork. If the shutdown forces you to do things outside the norm, make sure you document every step. Should an audit come along, you’ll want to be able to show you did your best — even if your best was written in crayon.
8. Keep telling your story
Your community needs to hear from you. Remind them what you do, why you matter and how they can help. Their support may be what keeps your doors open — and your spirits high — if the shutdown drags on. So, fire up those social channels and make your mission go viral (in a good way).
In conclusion, a government shutdown may be out of your hands, but how you respond is up to you. Stay nimble, stay caffeinated and, above all, keep your sense of humor. After all, if Congress can keep making the same mistakes every year and call it “tradition,” you can survive anything.
How Wipfli can help
Get help navigating uncertainty and funding challenges. Wipfli works with nonprofit organizations to diversify revenue streams, strengthen efficiency and thrive, come what may. Start a conversation here.
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