GEO is deeply troubled by the new administration’s attempt to pause all federal grants, loans, and other financial assistance and require that all federal funding undergo a review to ensure it aligns with the administration’s policies. While there are serious doubts about the legality of this action, it represents an existential threat to the thriving nonprofits and communities for which GEO stands. As we stated in last week’s message to our community, now is the time to remain steadfast in our commitment to our values and collaboration with our community. As we all figure out the full implications of this order, there are critical steps grantmakers can take now to protect grantees:
- Move money quickly and without restriction. Nonprofits are deeply worried about their ability to serve their communities, make payroll, pay rent, and cover other basic needs. Now is the time to fast-track available resources and remove restrictions on current grants. Flexible, reliable funding, such as general operating support, multiyear grants and funds that cover indirect costs, gives nonprofits the resources to strengthen their organizations, respond to changes in our communities and make real progress.
- Seek creative ways to increase support for grantees such as bridge loans, emergency grants, loan guarantees, capacity building grants, and more. Organizations like Nonprofit Finance Fund and Open Road offer resources in this area.
- Rely on partners or intermediaries with rapid response funds. If your foundation does not have the infrastructure to move money quickly, lean on existing relationships with intermediary funders who have these mechanisms in place.
- Support capacity building as nonprofits navigate a shifting landscape. Organizations are seeking to understand the terms and conditions of federal support, the implications for their financial pictures, and messaging for funders about the ramifications of a federal funding pause. Many nonprofits are also in need of legal support and resources for security of their technology, physical spaces, and staff. By offering capacity building support directly or tapping into local collaborative capacity building efforts, you may be able to equip grantees with much needed resources outside of your regular grantmaking cycles or parameters.
- Pay attention to the evolving federal landscape impacting nonprofits and communities, and help your grantees connect with regional and national sources of guidance and support. Yesterday’s memo has left our sector scrambling and is a distraction from the critical missions of our nonprofit partners. Philanthropy can help by providing resources and guidance that allow grantees to remain focused on their communities and rooted in their values.
- The National Council on Nonprofits is tracking executive orders affecting the nonprofit sector and analyzing their potential impacts. This document is being updated continuously.
- Many partners have come together to host Executive Order on DEI: What Nonprofits and Philanthropies Need to Know, a webinar on January 31.
- Lean on your trusting relationships. Check in with your grantees about their particular needs at this time and be ready to respond. When we center the perspectives of nonprofits and the communities we serve, we support better solutions. Trusting relationships are critical to our success as grantmakers. During the COVID-19 pandemic, we saw that grantmakers with existing trust-based relationships were better able to pivot funding and support to respond quickly to the needs of their community.
These times call on us to be creative, nimble and responsive. We can draw on the lessons of the COVID-19 pandemic and remember that we have the collective knowledge and drive to move quickly and with purpose. GEO will continue exploring ways grantmakers can respond to this and other actions in our peer communities in the coming weeks and months. We invite you to explore those communities and join us for one of our many upcoming opportunities to connect and learn. Together we can protect thriving nonprofits and communities.