What Does a Government Shutdown Mean to Nonprofits?
UPDATED (9:00 am, 10/1/2013): It happened. Most non-essential, federal workers are now furloughed until further notice.
As of midday, Monday, September 30, 2013, both sides of the political aisle are firmly entrenched on the federal budget talks and neither side appears willing to blink. Unless something happens to break the stalemate (and there is no hint of that), then the government officially grinds to a halt at midnight tonight. Aside – for those who don’t realize it, the federal government runs a October 1 – September 30 fiscal year.
Let’s assume neither side budges and the government does, indeed, shut down. What does this mean for nonprofits?
Well, for starters, don’t try calling the IRS tomorrow. The last news I saw indicated that up to 85% of IRS personnel will be furloughed. Those of you who are dependent on federal grant payments might see a delay in your October installment. Few others will feel much directly.
Inevitably, this will all get worked out in a few days. A compromise that manages to muck things up even more will be hammered out, both sides will point at each other and the IRS will once again answer their phones. Then, when this temporary measure expires in December, we get to do it all again!
Remember the definition of insanity?
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I wish Congress would close up shop and something else be created, they have out lived the usefulness. All new people and a new set of rules, no bribes. extortion and blackmail will be treated as if congress were public civilians, (real people subject to laws and such).
Any news on what this means for processing applications for 501c3 status?
It will certainly impact the timeline. The Exempt Organizations division is mostly considered “non-essential”, so all application reviewers are presumably furloughed. The impact this will have on processing times is entirely dependent on how long the shutdown lasts.