Funding for Michigan nonprofits reliant on federal grants would likely be slowed or halted if the government shuts down. Michigan nonprofit leaders said a shutdown would be at best disruptive and at worst potentially devastating for local communities.
Kelley Kuhn, the president and CEO of the Michigan Nonprofit Association, said many nonprofits are already operating on tight margins and lean budgets, and a slow or halt in federal funding could lead to serious financial strain.
“Nonprofits will struggle to deliver essential services that millions of Michigan residents rely on everyday, services like food assistance, housing support, healthcare, childcare, and senior and veteran support,” Kuhn said. “Nonprofits are connected with communities where we have our most vulnerable.”
Kuhn said nonprofits help foster arts and culture with their support of libraries, museums, community art, and recreational activities. “The breadth and depth of what nonprofits do really is embedded in all aspects of community,” Kuhn said.
Nonprofits also provide many emergency services, including disaster relief, crisis responses to violence, and support for domestic abuse survivors, said Sarah Saadian, a senior vice president at the National Council of Nonprofits. She said nonprofits often facilitate neighbors stepping up to help other neighbors in need.
Kuhn said a prolonged shutdown could impact the employment of people working at nonprofits, potentially resulting in layoffs. Saadian added that the longer a shutdown goes on, the more severe the impacts on non profits will be. They may need to decide between cutting back on services or eliminating staff members, she added.
“If people can get access to resources they need, it puts more pressure on nonprofits to fill in the gap,” Saadian said. For example, she said the federal Women Infant and Children (WIC) program would run out of money only days after a shutdown, so people would turn to nonprofits for services instead.
But both leaders said nonprofits have been working to create contingency plans to mitigate the negative impacts of a shutdown.
Financially, nonprofits are looking to philanthropic organizations and individual donors for alternative sources of funding. According to Kuhn, they are also aiming to partner with other nonprofits to minimize the strain on communities.
Kuhn said it’s important to create awareness of nonprofits so residents can support them. She added that volunteering at a nonprofit is a great way to give back to the community and support the work they do.
Saadian said the National Council of Nonprofits has advised local nonprofits to plan for a federal government shutdown. “Neither side, Republican or Democrat, seems very interested at the moment in overcoming their differences,” she said.
Saadian encouraged nonprofits to share their story with members of Congress. “Those stories are really powerful in changing minds and encouraging folks to compromise and reach an agreement.”
