How Iowa Nonprofits Can Prepare for Policy Changes and Funding Uncertainty
A delayed grant payment can quickly become a staffing decision. A change in funding requirements can raise questions about how to keep a program running. And a steady stream of policy alerts can leave nonprofit leaders wondering what deserves their attention first.
For Iowa nonprofit executive directors and board members, the challenge is deciding what to do with limited time, staff and resources.
That was the focus of Heart of Des Moines’ Oct. 6 discussion, “Nonprofits in a Changing Policy Landscape and How It Impacts Iowa.” Moderated by E.J. Wallace of The Wallace Edge, the panel brought together Holly Ambuehl of the National Council of Nonprofits, Lisa Cushatt of Iowa ACEs 360 and Bethany Snyder of Snyder Strategies.
Their advice offers a starting point for nonprofit strategic planning, board conversations and advocacy: understand your exposure, prepare before a crisis and make it easy for others to help.
Understand where your nonprofit’s funding comes from
Your organization may be affected by federal funding changes even if it does not receive a grant directly from the federal government.
Cushatt pointed out that federal dollars also reach nonprofits through state agencies, universities and other organizations. A subcontract or subaward can carry funding requirements and risks that begin several steps upstream.
Start by asking:
Which grants and contracts support our core services?
Where does that money originate?
What happens to cash flow if a payment arrives late?
Who can clarify changes to our award or contract?
A funding delay affects more than a budget line. It can affect payroll, service availability and the workload of staff trying to meet community needs.
Map those connections before you need to make a difficult decision. If the picture is unclear, financial or operations support may help your team identify the questions it needs to answer.
Bring your board into contingency planning early
Board members cannot help address a risk they do not understand.
Cushatt described talking with her board president and treasurer before uncertain funding became an immediate crisis. Early conversations created room to consider options, relationships and potential partnerships.
Give your board a practical picture of the situation: what is known, what remains uncertain and when decisions may be needed. Then discuss scenarios.
What would your organization do if a payment were delayed? If a grant were not renewed? If demand for services increased without additional funding?
Include staffing capacity in those conversations. Continuing services by repeatedly adding work to an already stretched team has consequences.
Nonprofit board development and strategic planning can help turn these discussions into a usable plan. The goal is to agree on decision points, responsibilities and priorities while there is still time to weigh them.
Turn your nonprofit’s data into a clear request
Your organization probably already collects information that could help a policymaker or donor understand what is happening locally.
Snyder encouraged leaders to revisit grant reports and annual reports. Those documents may contain useful information about people served, unmet needs and program outcomes. Cushatt emphasized the value of data specific to a lawmaker’s district.
The next step is to connect that information to an action.
A useful message answers three questions:
What is happening?
What does it mean for people in our community?
What are we asking this person to do?
For example, explaining that a funding delay may reduce service hours gives a reader context. Asking a donor to help cover a defined short-term gap gives that person a way to respond.
Communications, fundraising and data consultants can help you select relevant evidence, explain its significance and develop a request that fits the audience. Keep the numbers accurate and protect the privacy of the people behind them.
Build relationships before you urgently need them
It is harder to explain your mission, establish trust and ask for help all in the same crisis conversation.
Snyder encouraged nonprofit leaders to introduce their work to lawmakers before a specific policy request becomes urgent. Share what your organization does, who it serves and what you are learning in the community.
Relationships with legislative staff matter, too. Ambuehl noted that staff can be valuable contacts for understanding an issue and identifying next steps.
Apply the same approach to donors, board members and nonprofit partners. Keep them informed about your work and the pressures affecting it. Give them specific, appropriate ways to participate.
Wallace also encouraged leaders to look closely at existing donor relationships. A nonprofit fundraising strategy should consider how current supporters might deepen their engagement, along with opportunities to reach new donors.
Know the difference between advocacy, lobbying and campaign activity
Uncertainty about the rules can keep a nonprofit from speaking up about its mission.
Ambuehl recommended helping boards understand the distinctions among advocacy, lobbying and political campaign activity. They are not interchangeable.
The IRS explains that 501(c)(3) organizations may conduct some lobbying within applicable limits. It separately prohibits participation or intervention in campaigns for or against candidates for public office.
Board education can help leaders ask better questions and plan appropriate activities. For decisions involving your organization’s specific obligations, bring in qualified legal guidance.
Choose policy priorities that fit your mission
Every alert cannot become your organization’s top priority.
The panel encouraged leaders to consider immediate operational risks alongside their mission and values. A threat to a funding stream may require prompt attention. A broader change may also matter because of its effect on the people you serve or your ability to fulfill your mission.
Use a few questions to guide your response:
Does this affect our funding, operations or community?
Is this an announced proposal, an active requirement or a development still being challenged?
What deadline or decision requires our attention?
Who is already working on this issue?
What can we contribute without stretching our team beyond its capacity?
The National Council of Nonprofits’ policy resources provide a place to follow developments and find updates. Issue coalitions and peer organizations can also help you understand where coordinated action would be useful.
When should you bring in a nonprofit consultant?
Outside support can be useful when a specific decision or project needs expertise your team does not have available.
You might need help preparing a board planning session, reviewing fundraising priorities, explaining a funding challenge to supporters or assessing staffing and operations.
Define that need before you begin looking. A clear project makes it easier to choose the right consultant and use your budget well.
Heart of Des Moines connects nonprofit leaders with independent consultants serving Central Iowa. Explore nonprofit consulting services or meet our consultants to find expertise relevant to your organization.
Have a decision or project you need help moving forward? Contact Heart of Des Moines. Tell us your organization’s name, the challenge you want to address, your timeline and your anticipated budget or budget range. That context can help us point you toward a consultant whose expertise fits your needs.
