Addressing Federal Funding Threats and Their Impact on Georgia's Nonprofits
Georgia Grantmakers Alliance (GGA) is committed to supporting grantmakers throughout the State to make a transformational impact and improve the lives of all Georgians. One of the ways we do this is by examining statewide issues, public policy, and their implications for grantmakers and nonprofits in our communities. Last week, our Public Policy Committee discussed GGA’s core values of learning, influencing, and allyship, particularly in light of the uncertainty surrounding potential federal funding cuts.
Through conversations with grantees, one key insight emerged: being part of a membership network, coalition, or advocacy organization is vital. These networks provide nonprofits with access to informed messengers and a collective voice. Some sectors in Georgia are much better resourced, organized, and prepared to respond to these challenges than others.
We also recognize the critical role advocacy organizations play in amplifying the voices of individual nonprofits and communities. A powerful example came last week from the National Center for Nonprofits, which not only maintained a clear federal policy agenda but also demonstrated effective member mobilization to push for policy changes.
Closer to home, GEEARS (Georgia Early Education Alliance for Ready Students), a statewide nonprofit advocating for access to high quality child care and early learning across Georgia, quickly mobilized their network of child care providers after the federal announcement. They collected firsthand accounts, documented the scope of the situation, and communicated immediate action steps. Within 36 hours of the first Executive Order ordering the federal funding freeze, they sent the following message to their partners:
"When one of our Head Start directors came into work this morning at 7 am, she discovered that the PMS system, through which Head Start grantees access money for payroll, was turned off. Our Head Start programs have payroll due this week and cannot access funding. For Easter Seals, the YMCA, and Sheltering Arms alone, this could impact about 5,500 children—and we are also working to quantify the number of staff affected. If the freeze on funds continues, closures are imminent. We are working with providers on a public strategy and will need urgent calls to Governor Kemp and the Georgia Congressional Delegation. I will be in touch with more details soon."
This example clearly illustrates how changes in federal policy and funding can affect nonprofits in Georgia. The Public Policy Committee also gathered additional examples of the impact on Georgia’s communities, including:
Potential disruption of climate change projects in vulnerable coastal areas
“Atlanta’s large refugee resettlement communities are recalibrating as President Donald Trump’s executive order stopping refugees goes into effect…no refugees will be resettled to Atlanta.”
From conversations with nonprofits receiving federal funding, we understand that as of this writing, all federal funding remains under review. VOICES for Georgia’s Children released a helpful overview of federal funding coming into Georgia to support children and families. Nonprofits are navigating next steps, and one example shared this week was in a memo from the Department of Community Affairs. Organizations receiving AmeriCorps funding were provided guidance from Georgia Serves to take immediate action to conduct a thorough review of policies and activities and to update materials to align with the White House’s agenda. Below is a quote from one of our grantees outlining their response to the directive:
“At this time, under the guidance of our legal counsel, we are focusing on reviewing and adjusting documents, policies, and training related to AmeriCorps members and services provided on campus. This review will adjust language to comply with the attached directive.”
As you can imagine, the time and cost associated with responding to these directives are significant. It also assumes that nonprofits have access to—and can afford—legal counsel with expertise in civil rights law.
The nonprofit sector is facing increased instability, and we believe that grantmakers have an opportunity—both individually and collectively—to strengthen its capacity to weather significant challenges. Grantmakers for Effective Organizations has released a timely summary of critical steps grantmakers may take to help protect grantees. We encourage you to consider one or more of these steps to build some stability for the nonprofit sector. Immediate steps can include releasing restrictions on grants or distributing payments sooner than planned.
GGA aims to build connections that lead to a fuller understanding of the implications and impacts to our local nonprofit landscape. We hope to continue providing valuable insights that assist you in your work and conversations. We also encourage you to share this communication with your Trustees.
If you have any questions about specific organizations or announcements, our Public Policy Committee is happy to answer those one-to-one.
