News and analysis
October 14, 2013

Nonprofits Face Delayed Payments From Shutdown

More than half of nearly 100 nonprofits that receive federal aid said in a new poll that their payments from the federal government have been delayed or stopped because of the shutdown, according to the Nonprofit Finance Fund. Sixty-four other groups that participated in the poll said they received no federal aid.

The poll, posted online by the fund, which provides loans to nonprofits, found that 43 percent of 97 groups say payments have been delayed, and 15 percent said their payments have been stopped altogether. Only 26 percent reported on-time payments, while 16 percent said their money has been arriving as always: late.

As a result of struggles with government, 18 percent reported that they had shut down or scaled back programs, and 5 percent have laid off employees or placed them on furlough, the poll reported.

The poll isn’t designed to be a scientific survey, Nonprofit Finance Fund officials said, but it “represents a range of nonprofit experiences and pervasive fears as cash-strapped nonprofits worry about the ability to deliver services to people in need.”

Human-service and arts organizations made up 54 percent of groups that took to the poll, and more than half of all the groups had budgets of $500,001 to $5-million.

The fund is continuing to accept responses. To participate, go to the Nonprofit Finance Fund’s survey site.

Read more about how the government shutdown is affecting charities.

Send an e-mail to Doug Donovan.