Once again, we are entering a time of uncertainty and ambiguity. And by we, we mean the nonprofit sector, the organizations on the front line of responding to community needs and emerging political and social challenges. Our projects and clients are on the frontlines of making changes in our community to improve people’s lives around issues of the environment, immigration, health, safety net programs, and so much more.
While we don’t know much yet about the changes coming from the new administration, here are some things to think about to prepare for the next few years:
Federal Funding: What We are Watching
Something that often gets lost in the seemingly endless breaking news headlines are the byzantine ways that legislators really do impact our lives. As Congress has not yet enacted the appropriations bills to fund the federal government for the fiscal year that began in October, a stopgap Continuing Resolution (CR) measure that is funding government programs at 2024 levels is set to expire on December 20, 2024. If no stopgap measure passes, a government shutdown will ensue. If a stopgap measure does pass in time, another CR will likely extend funding to March 2025. For those waiting to hear results of or wanting to make requests for earmarks (aka Congressionally Directed Spending), please note that they must go through the appropriations process and that CRs cannot enact earmarks.[1]
State Funding: What We are Watching
We will be watching the appropriations process for the potential impact on federally funded state allocations and grant programs. Governor Newsom called a special session for state lawmakers the week of December 2nd to propose a new litigation fund to try to protect the state’s federal funding for disaster relief, health care, and other vital services, see Fact Sheet.[2]
County Funding: What We are Watching
Some jurisdictions in Orange County have already moved forward with releasing Request for Proposals (RFPs) for their Program Year 2025-26 Community Development Block Grants (CDBG) and other federally funded local grants such as an Emergency Shelter Grant (ESG) partnership of the Cities of Anaheim, Irvine, Santa Ana and Garden Grove, but noting that available funding amounts are not yet final.[3] We are also keeping an eye on changes to the Orange County contracting process.
Navigating Uncertainty in the Nonprofit Sector
As we look ahead, nonprofit organizations are entering a period defined by uncertainty, transition, and rapid change. Shifts in political leadership, evolving public policy, and changing funding priorities are creating both challenges and opportunities for organizations on the front lines.
While the full impact of these changes is still unfolding, one thing is clear: organizations that proactively adapt will be better positioned to sustain their work and deepen their impact in the years ahead.
Diversified Budgets: Planning for Agility
We anticipate that there may be changes in tax policy, charitable giving trends, and nonprofit regulations in the coming months and years, and changes at the federal level may create ripple effects for funding at state and local levels. All this to say, now might be a good time to take a moment to better understand your budget, particularly your revenue streams and where you may be vulnerable to a dramatic shift. Here at CV, we are doing this too, reviewing ways to stay nimble and how to be ready to handle not just problems, but opportunities that arise.
Now may also be a good time to identify your working capital needs. Do you have a reserve? A line of credit? A long-term loan to support growth? Is it enough to get you through a difficult 6-month period if government payments slow? It may be more prudent to use a donor or funder relationship to help you pay interest on a bank loan that is stable, than to directly fundraise for your annual budget in times of uncertainty.
Key Trends Shaping the Next Few Years
Across the nonprofit sector, several emerging trends are already influencing how organizations operate, collaborate, and deliver services.
Increasing Demand for Services
Communities continue to face growing needs across housing, health, economic stability, and education. Many organizations are experiencing increased demand while navigating limited resources. Sector data shows that a majority of nonprofits expect demand to continue rising, even as capacity remains constrained.
Ongoing Funding Uncertainty
Government funding delays, shifting philanthropic priorities, and changes in donor behavior are making revenue less predictable. Many organizations are being forced to diversify funding streams and rethink financial strategies to remain sustainable.
Workforce Challenges and Burnout
Staff recruitment, retention, and burnout continue to impact nonprofit operations. Organizations are rethinking workplace structures, compensation strategies, and leadership models to better support their teams.
Policy and Regulatory Shifts
Changes at the federal, state, and local levels can significantly impact nonprofit operations—from funding eligibility to program requirements. Staying informed and adaptable is critical for long-term success.
Staying in Touch: Communicating with Your Elected Officials
Now more than ever, it will be important to have a clear understanding of jurisdictions, your elected official representation, and the departments and agencies involved with your work. A good practice is to maintain a file or folder with all the information regularly asked on government grant applications and update it regularly. Here are links to help you:
- Find my U.S. Congressperson
- Find my U.S. Senator
- Find your State Legislator (Senator and Assembly/Member)
- Orange County Supervisors
Charitable Ventures will continue to be your trusted partner:
- Keep an eye out for our trend forecasts, workshops, blogs & newsletters.
- Let us know if you need organizational or strategic support by filling out our Intake Form.
- Go to Map My CBO to find future partners in the coming efforts, or to let others find you.
We Will Meet this Moment Together.
We want you to know that CV is here for your organization and the community you serve. We will continue to share tips and tools for seeking grants within this changing environment, with a special focus on how we believe government funding may be impacted. With our deep experience developing evaluations and community needs assessments we will continue to support our partners strategize and collaborate through the coming transitions.
[1] Nonprofit Champion | December 2, 2024 | National Council of Nonprofits
[2] California lawmakers kick off special session to ‘Trump-proof’ the Golden State
[3] HUD Grant Programs | City of Irvine