Federal funding has long been a critical revenue source for nonprofits. However, recent legal and policy shifts have introduced delays, uncertainty, and administrative challenges – particularly for organizations receiving funds through state and local pass-through grants.

While it is difficult to predict how long this uncertainty will last, proactive financial management can help nonprofits maintain stability and avoid disruptions.

With over 20 years of experience helping nonprofit organizations achieve financial excellence, BTQ Financial recommends nonprofits take the following steps to navigate federal funding uncertainty.

1. Identify Exposure to Federal and Pass-Through Funding

• Review all current and pending grants to determine whether federal funds are the ultimate source, even if received through a state or local agency.
• Confirm with funders whether any expected disbursements are at risk of delay.

2. Prioritize Cash Flow Management

• Submit outstanding drawdown requests immediately to minimize delays.
• Update cash flow forecasts regularly—consider shifting from quarterly to monthly or weekly projections.
• Develop a contingency budget outlining tiered spending reductions in case of prolonged funding delays.
• Engage your board in scenario planning discussions to prepare for different funding outcomes.

3. Expand Funding Diversification Strategies

• Reassess relationships with private funders: Engage with foundations and donors who may offer flexible funding or bridge support.
• Explore financing options: A line of credit or bridge loan can provide short-term liquidity while awaiting delayed grant reimbursements.
• Evaluate unrestricted revenue sources: Expanding earned income strategies or mission-aligned partnerships can reduce reliance on government funding.

4. Maintain Strong Compliance & Communication Practices

• Stay in close contact with program officers at federal and state agencies to track policy changes and funding updates.
• Review subrecipient agreements to ensure compliance with reporting and financial oversight requirements.

Looking Forward

Federal funding cycles are often unpredictable, but nonprofits with robust financial systems and proactive funding strategies will be better positioned to adapt. Now is the time to:

• Strengthen financial oversight through clear reporting and compliance processes.
• Ensure cash flow resilience with frequent forecasting and diversified funding streams.
• Engage with both public and private funders to create financial flexibility.

BTQ Financial has worked alongside nonprofits for over 20 years, helping organizations navigate funding uncertainty through outsourced financial and grants management, financial strategy, and compliance oversight.

By ensuring efficient financial operations, nonprofits can focus on their mission while staying financially strong. Connect with us to discuss how we can help your organization.

Additional Resources for Nonprofits

The following resources provide updates and guidance on federal funding, compliance, and financial strategy:

• National Council of Nonprofits – Executive Order Tracker
• White House Presidential Actions Website
• Federal Funds Information for States (FFIS) – Grant Funding Updates
• Grants.gov – Federal Grant Applications Tracking
• OMB Uniform Guidance (2 CFR 200) – Federal Grant Compliance

When NYC School Bus Umbrella Services (NYCSBUS) needed to transition from a private contractor to a nonprofit organization, they faced an immense challenge: maintaining service for 9,000+ students while completely rebuilding their finance function.

“BTQ came in, looked at the outcomes we needed, put boots on the ground, and got us to the finish line,” says Matt Berlin, CEO of NYCSBUS.

The Challenge

• Transitioning an $180 million fiscal department
• Ensuring uninterrupted service for students with special needs
• Establishing credibility with city auditors and public stakeholders
• Building complex system integrations with specialized fleet management software

The BTQ Solution: Finance as a Service (FaaS)

In just 30 days, our team:

1. Implemented a comprehensive suite of financial systems
2. Assumed full CFO responsibilities
3. Created transparent reporting capabilities
4. Integrated with specialized operational systems
5. Established audit-ready financial practices

The Results

With BTQ managing their financial operations, NYCSBUS was able to redirect resources toward their mission:

• Program Innovation: Beginning to electrify their bus fleet
• Service Enhancement: Integrating machine learning technology
• Operational Efficiency: Running the entire financial system with minimal in-house staff
• Stakeholder Confidence: Providing clean audits before the Comptroller’s committee
• Mission Focus: Concentrating on improving transportation services for NYC students

How BTQ Empowers Nonprofit Program Expansion

Our FaaS model creates the foundation that allows nonprofits to innovate and grow:

1. Resource Optimization

By outsourcing finance functions to BTQ, nonprofits can reallocate resources toward mission-critical programs rather than administrative overhead.

2. Financial Clarity

Our transparent reporting provides the confidence to make bold program decisions, knowing exactly where resources stand and how they can be leveraged.

3. Scalable Operations

As your organization grows, BTQ’s financial capabilities grow with you—no need to continuously invest in building an internal finance department.

4. Risk Mitigation

Our nonprofit financial expertise helps identify opportunities and avoid pitfalls, creating a stable foundation for program expansion.

5. Strategic Partnership

We serve as thought partners in your financial strategy, helping align fiscal resources with mission objectives.

Ready to Transform Your Finance Function?

Learn how BTQ Financial can help your organization build the fiscal foundation needed to expand your mission impact. Our team of nonprofit financial experts is ready to create a tailored solution for your specific needs.

“Most SaaS companies don’t care about you. BTQ gives a damn about us.” — Matt Berlin, NYCSBUS CEO

BTQ has been empowering the most progressive nonprofit organizations since 2001 with financial management, medical billing, and accounting services that support their missions and secure sustained operations.

Contact us to learn more about how we transform your back-office function into a strategic growth engine.