New Federal Tax Reform Bill To Impact Grants

February 13, 2018       Mark Hrywna      

Even nonprofits that don’t receive direct federal grants often benefit from money provided by state, county, city or other organizations that pass-through federal support. The far-reaching arm of the federal dollar means almost all nonprofits feel the hurricane-force drama pouring out of Washington, D.C.

The new tax bill is fueling grave concerns that nonprofits will lose billions in individual contributions, and that spending cuts will result in decreased funding and increased demand for help. Medicaid cuts could hobble health services and risk the wellbeing of vulnerable people. Recent changes in the Interior Department’s review of grant awards, and the EPA’s stand on climate change funding echo like thunder clouds signaling changes in how other agencies could handle award decisions.

Whether or not the worst fears of nonprofits materialize, one thing’s for sure — the seismic noise, turbulence, uncertainty, and acrimony in Washington are shaking the very foundations of the status quo. “Federal grants have always been shaped by politics and national events, and the current scenario reflects that,” said Barbara Floersch, executive director of The Grantsmanship Center in Los Angeles, Calif.

Will partisan intrusions tarnish the ideal of objective grant reviews? Will the bases of peer review scores, geographic distribution, and diversity of target populations in award decisions be upended by upper-level administrative preferences? Will earmarked grants, which have been diminished, re-emerge as a tool to reward favored congressional members who perform a good lock-step with leaders in power?

As grant professionals, the job is to stay alert, stay the course, do good, mission-driven work, and exert influence where we can to guide the federal grants process in the direction you believe best serves the country. If you think something is wrong, speak up. If you think a process could be improved, offer your thoughts.

“Be clear about your position, be consistent, be persistent — and represent your profession in a well-informed, well-reasoned way,” said Floersch. “And because federal grant funding will always react to the political environment, vote.” © Copyright 2018 The Grantsmanship Center.