Shutdown Over, Now What? How Nonprofits Recover!

Federal shutdown over! Systems rebooting! Nonprofits on the clock! In this urgent episode, we bring back Derick Dreher, Department Leader, Government Funding at Your Part-Time Controller (YPTC)—just hours after the government reopens from the longest shutdown in U.S. history.

Derick starts with what happened in Washington: failed Senate votes, a last-minute continuing resolution, and a deal that funds government operations into January while restoring budgets for agencies like USDA and programs such as SNAP. But this is not just a civics lesson; it’s a compliance wake-up call for every nonprofit with federal awards.

Even though agencies were closed and portals were offline, he reminds viewers that obligations never went away. As Derick puts it, “It’s a challenge, but you still have to do it.” Reports due during the shutdown are still due. If a federal portal was off, organizations should have emailed, mailed certified copies, and documented every step. That paper trail may be the difference between a simple explanation and a “you’re in breach” notice now that systems are back up.

Derick explains that rules are shifting at the same time pressure is rising. An August executive order on federal grantmaking is reshaping Uniform Guidance and, in some cases, contradicting existing regulations. Nonprofits cannot simply move programs from October to November or rework budgets on their own. Any change—timelines, program design, vendors—requires permission.

The human side of this story is just as urgent. Federal employees returning from 43 days of furlough are staring at thousands of unread messages, while agencies are already dealing with staffing shortages. Automated payments and notices may resume quickly, but nuanced approvals, extensions, and clarifications will take time. That means nonprofits must expect delays while still operating at peak year-end demand and navigating food insecurity, SNAP disruption, and stretched donors.

Derick calls on leaders to treat this as a mini audit moment: review every award, update budgets and reports, clarify what did and didn’t happen during the shutdown, and then proactively request extensions and changes. “Federal awards are complicated beasts that have a lot of details and a lot of moving parts, and there’s no reason to be afraid of accepting them,” he says—if leaders build strong internal controls for timesheets, receipts, and documentation.

Above all, think of this as a reframe of the relationship with government funders: not as begging with an outstretched hand, but as a handshake partnership where authenticity, preparation, and transparency show you are leading with excellence. Get organized now, communicate wisely, and you can turn this chaotic shutdown into a proving ground for your nonprofit’s strength and mission focus.

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