Dawn Franks

Here’s how it goes. I jump in the car, right foot on the brake, my right hand pushes the start button, move gear shift to reverse, start backing up, check rearview mirror, check camera, still backing up, check radio station, now the clock, change stations, still backing up, adjust the radio volume. Finally, out of the driveway, I move the shifter to drive, accelerate, check the clock again and calculate how much time I have to reach my destination.

As I describe my daily driving process, I wonder if I’m the queen of multi-tasking or a gifted distracted driver.

Not long into my journey, I come to a school zone where I stop for a long minute. I remind myself to slow down, take two deep breaths, then go. In about five more minutes, I drive into a second school zone.

Here’s my challenge. I slow down from 45 to 35 miles per hour, and then right as I leave the school zone, another sign alerts me to slow even more to 30 miles per hour just as I enter a curve I can’t see around.

Slow down. Slow down more because we can’t see beyond the curve. Is something heading right at us? The signs should keep us safe and protect other drivers and pedestrians, but we’re easily distracted.

Many nonprofit organizations are having a school zone – slow down for the corner moment right now. It’s hard to ignore the degree of change happening in our nation’s capital. While change is not unusual after presidential elections, the degree and rate of the changes are different this time. State and federal grant applications are often due now, with decisions made by summer and funding beginning in September or October.

Nonprofit organizations that receive state and federal funding are unsure how these changes will impact grants that fund needed services. Nearly a trillion dollars flows from Washington to state capitals as pass-through funding and then onto nonprofit organizations.

Smart nonprofits are looking into the future and asking big questions. What percent of our income comes from a state or federal funding source? If we lost the funding today, what would we have to cut back? How would it impact services? What changes could we make to operate with less funding yet still serve as many as possible?

What other funding sources should we apply to? What do donors need to know about our financial situation? What’s the best way to communicate the change? Should we add a new special event to avoid the loss of funds? This is just a shortlist.

And then, what if we are funded as usual this year, but we’re hearing about big changes for the next year? The questions start all over again.

Smart donors need to prepare for a different kind of conversation with organizations they support. After the update about services today, shift toward questions about the impact of funding changes. What plans does the organization have for significant or unexpected changes? How is the board of directors addressing the possibility of funding changes?

An estimate I found from the Urban Institute indicated half of all nonprofits with budgets under $100,000 receive about 13% of their operating expenses from federal funding. Reliance on federal funding sources increases dramatically as budget size increases. With federal pass-through dollars included, the numbers are fuzzy.

If you think that’s a small number and probably won’t have much of an impact on my favorite, small, local organization, there is one other issue I should l mention. If larger nonprofits experience funding cuts, they are better positioned to seek funding from foundations. The competition for local funds will grow, often leaving small nonprofits struggling even more than usual.

If you’re seeking answers and solutions, do all you can to be a smart donor and nonprofit. Prepare for change. Look into the future and imagine different. Nonprofits involve board members, key staff, volunteers, and those you serve. Donors discuss a different future at foundation board meetings and imagine what funding might look like differently. Or, at least, ask more questions.

Waste no time — get smart and work together to ensure families, neighbors, and strangers are fed, clothed, housed, cared for, and more. It’s up to us.