How An Upcoming Federal Election Can Impact Your Organization
Change can often be challenging to navigate, so unsurprisingly, the potential changes that can take place in an election year can cause anyone to feel anxious about the future. However, when it comes to how the election can impact your nonprofit or charitable organization, we do not have to be reactive. Understanding the potential impacts of the election and any potential change in government can have will help you to pause, reflect, and develop a proactive strategy to navigate these shifts.
If you are uncertain about how the election might affect your organization, here are a few potential changes to keep in mind, along with ways to prepare for them.
Changes to policy priorities. Elections can often shift which issues are prioritized. This can cause opportunities for your organization if policies align with your mission. For example, new project-based grant streams may be introduced that align with your organization's work, providing a boost to your fundraising budget. However, when priorities shift, they may no longer align with your mission, requiring your organization to adjust its strategy. To respond to these potential changes, help unlock your board’s fundraising potential by encouraging your board members to adopt a long-term perspective. No matter what government policies are prioritized, your mission and values should remain consistent. Additionally, consider collaborating with peers in your sector and working together to establish a plan of action if priorities change.
Changes to how funds are allocated. New government leadership can change how funds are distributed. This can have a particularly negative impact for organizations with a funding model that relies on government funding. Funding to social services are often particularly affected when new governments form their budgets. To address these changes, confront the potential disruption to your budget head-on. Consider exploring new opportunities for your organization to secure funding from alternative sources, adjusting expenses as needed, or beginning to build a reserve fund.
Changes to rules and regulations. As mentioned in point number one, elections often bring shifts in government priorities, which can also lead to new or revised regulations for organizations. This might include changes to reporting requirements, tax exemptions, or advocacy rules, all of which could significantly impact how these organizations operate. For example, a new rule might require organizations to disclose more detailed financial information annually, which could be challenging for smaller nonprofits to manage. To offset these changes, organizations can consider creating plans to follow new rules and adopting more proactive financial management, so they stay prepared for any changes.
Changes to existing partnerships. Elections can mean brand new MP’s, new government staff, new networks, and changes in existing relationships and dynamics. This may require your organization to build new relationships, strengthen existing connections, or consider brand new collaborations. To deal with this challenge, start working on your relationships immediately. Electoral candidates are often eager to meet with community members and organizations that serve their potential constituents. Start creating a plan for how to engage with candidates in a non-partisan way so your team is well prepared for any changes in leadership. To establish and strengthen relationships, begin with the same strategies your organization uses to cultivate donor connections and build stronger relationships.
Changes to public awareness and support. Elections can shift public attention to different causes, which might affect how much support nonprofits and charities receive from the community. During the election cycle, specific issues or priorities that align with a candidate's platform may be highlighted more, influencing various media platforms to focus on these topics. As a result, people may become more aware of certain causes, leading to increased support for nonprofits working in those areas. However, causes that are not in the spotlight might experience a decline in attention and may struggle to secure the resources they need to operate. To help with this, organizations can consider diversifying their fundraising strategies and building long-term community relationships to maintain support, regardless of shifting public attention during election cycles.
By considering how government changes might impact your organization, you can effectively prepare for an election year and minimize any long-term effects on your cause, or fundraising strategy. Preparing for changes in policy priorities, fund allocation, rules and regulations, existing partnerships, and public awareness and support will help your organization navigate the election cycle.