Part 1: What Non-Profit Leaders Need to Know as Congress Returns

By Michael Giovanis, Strategist, Fundraising Sol

Congress is reconvening the week of September 2. That means only four weeks remain before the October 1 kickoff of the new fiscal year.

In that window, lawmakers have to decide how—or whether—to keep government funding moving. For nonprofits, that’s not just background noise. It’s the weather system you operate in. If the skies stay clear, dollars flow on time. However, storms are on the horizon, and even strong programs can stall.

Where We Left Off

The Senate has passed several FY26 spending bills in committee—with bipartisan support. These proposals keep key programs—like nutrition, youth services, and family support—funded at or near existing levels. This gives nonprofits a useful benchmark for what could come.

The House has not finalized its versions yet. Appropriations bills are being drafted, but none have cleared the floor. That means agreement isn’t guaranteed.

Most likely path: a stopgap. As lawmakers struggle to reconcile differences, all signs point to a continuing resolution (CR) being used to keep government operations open. That means funding continues, but at last year’s levels—and new or expanded grants are delayed while talks continue.

What’s Coming Next

September will be about speed and high-stakes showdowns. Expect:

• A short-term CR into November or December.

• Riders (policy add-ons attached to larger bills) and fights that could still trim or delay specific lines.

• More headlines about “shutdown risk,” even if one doesn’t happen. These may sound alarming to your board, staff, and donors—be prepared to answer questions and assuage fears.

None of this is under your control. What is under your control is how you plan and how you explain that plan to your board, staff, and donors.

What To Do Right Now: Funding Scenario Planning Exercise

Here’s a simple three-track way to prepare:

• Plan A: Delay Money (most likely). A CR keeps dollars flat and slows reimbursements. Impact: You need reserves or donor gifts to cover a 30–60 day lag.

• Plan B: On-Time Funding (optimistic). Congress finishes bills quickly and your program money lands on schedule. Impact: You can start new hires or services closer to plan.

• Plan C: Sharp Cuts/Disruptions (worst case). Negotiations break down, cuts get swapped into the deal, or a shutdown stalls cash entirely. Impact: Freeze new spending, trim costs, and be ready with an urgent appeal to donors: “We need private dollars to keep these services alive while Washington fights.”

How to Talk to Your Board, Staff, and Donors

Your board, staff, and donors all want clarity about your plan. Keep the message consistent but tailored to each audience:

• Board: “Congress will likely pass a short-term fix. That means our reimbursements may slow. We’ve prepared two budget paths so our services don’t skip a beat.”

• Donors: “Private gifts are what keep our programs running on time while Washington debates. A donation today bridges the gap until federal dollars arrive.”

• Staff: “Funding is secure in principle, but timing is shaky. We’ve built three plans so you’ll always know where we stand: Plan A if reimbursements are delayed, Plan B if funding arrives on time, and Plan C if cuts or a shutdown disrupt cash flow. Each plan spells out what it means for our day-to-day work, so there won’t be surprises.”

Bottom Line

Think of September as storm season. You don’t control the weather, but you do control whether your organization has umbrellas, flashlights, and a backup generator. Use the new rules to strengthen your budgets. Build three plans, not one. And make sure everyone—from your finance chair to your front-line staff—knows the message: we have a plan and we are ready, no matter what Congress does next.

This is Part 1 of a two-part series. In next week’s Sol Snacks, we’ll dive into Part 2: the new tax and corporate giving rules nonprofits can’t afford to ignore. Make sure you’re subscribed so you don’t miss it!

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Michael provides policy and advocacy expertise at Fundraising Sol, helping clients navigate funding landscapes and legislative initiatives. He is also the principal consultant of Availing Echoism, offering fractional operations, finance, HR, and development services to nonprofits. He loves jazz music and camping with his dog.