Overcoming Challenges: Nonprofit panelists share plans to adapt amid federal government funding issues

Amid a challenging and uncertain federal funding environment, finding stability in planning and operations in the nonprofit sector is more important than ever, officials said at a Nov. 12 Springfield Area Chamber of Commerce event.

It’s a frequently changing landscape for nonprofits – one that requires flexibility and focus, said Dan Prater, senior managing consultant with Forvis Mazars LLP. Prater, who authored the firm’s 2025 State of the Nonprofit Sector Report, was among panelists at the chamber’s third-annual Nonprofit Outlook.

Prater said the idea of creating a clear multiyear path forward to make nonprofit planning and operations more sustainable is “silly.”

“Nobody really has any idea what the next three to five years are going to look like,” he said. “It’s changing by the hour, right?”

He said organizations should think of their strategic plan as a general path forward.

There’s a tendency to get bogged down in policies and procedures, he said, adding he encourages nonprofits to also connect with the passion that first launched it.

“If you really want to be strong and sustainable, go back to your roots. Figure out why you exist and build upon that,” he said.

At the chamber event, Prater was joined by Luann Feehan, president and CEO of Kansas City-based Nonprofit Connect, and Winter Kinne, president and CEO of Community Foundation of the Ozarks Inc., on the panel moderated by Abby Glenn Jones with Central Bank.

Collaboration is key
For Kinne, collaboration is a key word among nonprofits in southwest Missouri. Organizations that don’t collaborate with others can’t be strong, she said.

“It always comes up, but we do it well,” she said of the collaboration topic in the local community. “There’s a reason that it always comes up.”

Kinne said an example recently unfolded involving several organizations, including her own, and Ozarks Food Harvest Inc., as the organization responded to food insecurity amid the longest federal shutdown in U.S. history. The shutdown, which ended Nov. 12 after 43 days, impacted pay for federal workers, federally funded programs and food stamp benefits.

Ozarks Food Harvest earlier this month received a $40,000 matching grant from CFO, the Darr Family Foundation and the Musgrave Foundation, according to a news release. Due to the grant, every $1 that’s donated will provide $20 worth of groceries until the match is met.

“It goes back to collaboration, talking to each other, leaning on each other and treating it kind of like a natural disaster, quite frankly, right now, as we figure out exactly what the way forward looks like because it’s changing so frequently,” she said.

Feehan said collaboration and partnership are vital as nonprofits look for different ways to find funding and support. Financial resiliency depends on the leadership mindset, she said. Her organization provides nonprofit management resources, professional development programs and a regional nonprofit job board, according to its website.

“How can we collaborate with our business community a little bit more to align mission and the purpose that business has so that we can reinforce what is happening in our community and help individuals meet the needs that they have in a variety of ways?” she said.

It’s a message that resonated with Jaime Trussell, CEO at Crosslines Community Outreach. She was among those in attendance at the chamber event.

“I love that they reiterated now is not the time to try a bunch of brand-new solutions to the same problems,” Trussell said of the panelists’ message. “Double down on the things that work.”

Trussell’s organization also regularly deals with food insecurity among its clients, and she said it has been challenged by the government shutdown.

“We have this great infrastructure built,” she said of local food pantries. “It is being tested right now. There is new pressure on us that hopefully we’ll never see again. Hopefully, this is a short-lived process.”

Financial stability
In this year’s State of the Nonprofit Sector Report by Forvis Mazars, released in February, 86% of respondents expressed concern about the current funding situation surrounding federal funding. If the organization lost federal or state funding, nearly 72% of respondents said they’d have to seek alternative funding sources, such as private donations or corporate sponsorships.

Nationally, nearly one-third of U.S. nonprofits experienced at least one type of government funding disruption during the first six months of the year, according to a survey published last month by Washington, D.C.-based research organization The Urban Institute. Funding impacts included funding loss, delays, freezes and stop-work orders.

On the panel, Prater had several suggestions for nonprofits to build financial sustainability. Aside from avoiding reliance on just one or two funding sources, he said organizations should bolster their operating reserve.

“I would say build your reserve right now – six months minimum, and one year is better,” he said.

Strategic planning and budgeting should be undertaken every year, Prater said, adding the finances need to align with reality.

“Too many organizations don’t have the true cost of doing business,” he said. “Make sure you understand the true cost of business and you align your budget with that.”

When it comes to raising money and executing the nonprofit’s strategic plan, Prater said it’s a shared responsibility among the leadership and the board of directors.

“We can’t just throw it all on the executive director or the development director and say, ‘Why aren’t you raising more money?’ It’s actually the board’s responsibility as well,” he said. “I do believe in the plan that has a financial strategy that’s built on reality but also aspirational.”

He said one of the things organizations often don’t do well, which results in the loss of finances, is clarify their value proposition. If potential investors ask why they should choose your organization over others, it’s the nonprofit’s job to provide answers.

“If the board and CEO can’t answer that question, you can be sure the public certainly can’t,” he said.

When it comes to finding alternate funding sources, Prater said bridging capital among nonprofits is critical.

“Wherever you operate, you should know who in your community has what resources, who’s doing what,” he said. “Even if you’ve been there for 25 or 50 years, I think that that connectivity is still lacking and that is something that would help.”

Kinne said staying true to who you are as an organization is important, but it also matters for nonprofit employees take care of themselves in order to keep serving your community.

“You cannot keep helping all of these people if you do not sleep, drink water and see the sun,” she said. “We are all houseplants.”

According to chamber officials, roughly 330 attended this year’s Nonprofit Outlook, held at the White River Conference Center. The venue will also host the final event of the chamber’s annual series next month with the Manufacturing Outlook, scheduled for Dec. 3.