Last week, the Center for Nonprofit Excellence shared updates on the federal grants and loans freeze and we also shared some resources to stay abreast of developments as they are happening including those provided by the National Council for Nonprofits (NCN) on this webpage.

I also shared a number of actions you can take now to be prepared, from assessing your financial position to scenario planning to board and donor engagement. If you missed this information, you can see it posted here. In addition, you can certainly lift up your story to your local, state, and federal legislators. In my experience, they appreciate the opportunity to engage with you, their constituents, and to learn more about the challenges you are facing.

The National Council of Nonprofits is tracking state public policy issues and legislation across the U.S. through a combination of State Association Updates, news reports, connections with policy leaders, and their network. Through this engaged network of State Associations, Nonprofit Allies, and State Policy Allies, NCN is able to keep pace with the ever-changing policy developments across the country that affect our sector. To view the Nonprofit State Policy Tracker, click to visit NCN’s website.

Update on Federal Funding Freeze

On Monday, February 3^rd, a temporary restraining order (TRO) was issued in response to the lawsuit that the National Council of Nonprofits et al raised against the Office of Budget and Management (OMB). The Nonprofit Quarterly provides more about this update here.

NCN is providing a free public webinar regarding Executive Actions and their Impact on Charitable Nonprofits this Friday, 2/7/25, at 3pm EST.  CNE members can sign up for this webinar by registering here.

Making Space

Author Glenn Singleton recently posted that we are in a “state of brace.”  The mental imagery that this phrase evokes is exactly how I have felt the past couple of weeks and I imagine I am not alone. We cannot operate effectively in a continuous “state of brace” unless we consider how we make space for ourselves in this challenging time.

So how do we make space when we can’t necessarily step away from the work? We might pause to stretch, go for a walk, or make time to connect at the proverbial water cooler. What is important is that we intentionally pause, especially when we are at our busiest. Supporting each other is critical at all times, and especially as we experience these challenging times together. Sometimes rest is knowing when to lean on one another and we hope you will reach out to us when you need our support.

In partnership,

Mariane Asad Doyle, Ph. D.

Colleagues and Friends,

We are all receiving so much information so quickly that it is challenging to process it all. As a member of the National Council of Nonprofits (NCN), CNE has been closely following updates, and I wanted to share key information with you.

Federal Grant and Loan Freeze

Thanks to NCN’s strong advocacy alongside partner organizations, they have successfully secured a temporary stay on the Office of Management and Budget (OMB)’s response to recent executive orders, which included pausing all federal grants and loans. This stay blocks the freeze until February 3rd at 5 PM EST.

For more details, NCN has created a webpage to support nonprofits, including a summary chart of recent executive orders with analysis and related actions.

Call to Action

To better understand the real-world impact of these executive orders and the federal funding freeze, NCN has set up a feedback form for nonprofits to share how their missions and the people they serve are affected. If your organization is impacted, please fill out this brief impact form at NCN, then share this link with other nonprofits in your network.

Be Prepared

1. Assess Your Financials
   • Run cash flow and forecasting models with and without federal funds for short- and long-term planning.
   • Start with three- and six-month projections, then expand to long-term scenarios in case the freeze is extended.
2. Scenario Planning with Leadership
   • Determine if you need to adjust deliverables or shift timelines.
   • Identify what must happen immediately, in three months, in six months, and beyond.
3. Engage Your Board
   • Keep your board informed and involved in decision-making, ensuring they understand the factors influencing your next steps.
4. Communicate with Private Donors
   • Update your funders on the situation, its impact, and how your organization is adapting.
   • Clearly outline immediate and long-term needs based on your updated action plan.
5. Take a Breath
   • This is another moment of uncertainty, not long after a global pandemic.
   • Prioritize self-care—as we learned during the pandemic, resilience starts with making space to breathe amid the urgency.

Stay Informed

Watch for our statewide newsletter next week, where we’ll share updates, resources, and upcoming webinars or forums related to this issue.

Advocate

Now is the time to reach out to elected officials and share how this federal funding freeze is impacting your organization and those you support. Consider asking:

• What plans are in place to support nonprofits serving vulnerable Virginians?
• How is constituent feedback being collected regarding the effects of this grant freeze?

Thank you for all that you do to support Virginia’s nonprofits and the communities we serve. I’ll continue to share updates on LinkedIn and through our newsletter next week.

With appreciation,

Mariane Asad Doyle, Ph. D.