Government shutdown puts some nonprofits in jeopardy
The Disability Awareness Council in Chapel Hill, North Carolina, helps individuals with disabilities in the community by providing assistance ranging from transportation to housing support. However, for now, many services are on hold.
“Due to closures and cutbacks, essential disability services that people rely on each week have been either paused, reduced, or manned by unpaid labor,” said Timothy Miles, the organization’s executive director and board liaison.
As the crisis in Washington dragged on, many nonprofits lost access to federal grants and had to make difficult decisions about what aid they could offer and for how long.
At the same time, the shutdown has put at risk some federal benefits, such as the Supplemental Nutrition Assistance Program, or SNAP, just as the need for aid is growing. Hundreds of thousands of federal and contract workers have been furloughed, increasing the pressure on nonprofits that are supposed to help fill the gap.
“Nonprofits are on the front lines of serving communities, but the government shutdown is making it harder for them to fulfill their missions,” said Diane Yentel, president and CEO of the National Council of Nonprofits, an industry association.
“The longer this shutdown lasts, the more people and communities will be left without the critical services they need,” he said.
The current government shutdown is now the second-longest federal funding cut in U.S. history.
Many nonprofits were facing financial pressure before closing due to cuts in government funding earlier this year that limited their ability to meet community demand, according to the Urban Institute, a nonpartisan organization. policy research organization.
The average nonprofit receives approximately 28% of its funding from the government and 60% to 80% A majority of nonprofits would not be able to cover their expenses if they lost grant aid, according to the Institute’s analysis of IRS data.
With reduced funding, nonprofits now face a potential shortfall, said Sarah Saadian, senior vice president of public policy and campaigns for the National Council on Nonprofits.
“For nonprofits that are waiting for their grants to be renewed or need approval, there is no one there,” Saadian said.
Miles said this is one of the biggest challenges facing the Disability Awareness Council right now. “We expect some funding from the federal government,” he said, but “there is no direct contact with some of the agencies.”
According to Miles, the funding gap means some staff will not be paid and programs will be suspended. The organization has a workforce of seven and serves hundreds of people in the area.
‘Real long-term results’
The longer the shutdown lasts, the harder it will be for nonprofits to continue serving their communities, Saadian said.
In many cases, if an organization lays off staff or pauses a program or service, it may be difficult to continue operations once the shutdown is over and funding begins.
“When these organizations experience those types of impacts, there can be really long-term consequences because they’ve lost that infrastructure, they’ve lost that personnel,” Saadian said.
