The recent federal grants freeze is making things tough for a lot of non-profits. If your organization relies on government funding for IT upgrades, cybersecurity, or day-to-day operations, you might be wondering what happens next.
One thing’s for sure—technology isn’t something you can afford to ignore. It keeps your team running, your data safe, and your mission moving forward. But when budgets tighten, IT can easily become an afterthought. Now is the time to get ahead of potential problems, cut unnecessary costs, and make sure your tech strategy stays solid.
How the Federal Grants Freeze Impacts IT
The federal grants freeze, which initially paused funding for many programs, has now been lifted after major pushback from lawmakers and community leaders. The White House reversed the order after concerns grew over the confusion and disruption it caused, especially for programs supporting education, healthcare, and local nonprofits.
While this is a relief, it was a wake-up call for many organizations. The freeze—and the chaos it created—highlighted how quickly policy changes can disrupt funding, leaving nonprofits scrambling to figure out their next steps. Even though funding has been restored, this won’t be the last time government decisions impact nonprofit budgets, and it’s a good reminder to assess IT priorities now rather than react to the next crisis.
Here are some key takeaways:
- Policy changes can happen overnight. If your nonprofit relies on government grants, it’s smart to have a backup plan.
- IT disruptions can have serious consequences. Some organizations temporarily lost access to federal systems, which underscores the importance of strong cybersecurity, cloud backups, and reliable IT support.
- Some funding areas could still face cuts. Even though the freeze was lifted, programs related to environmental initiatives, DEI efforts, and global aid are likely to remain under scrutiny.
- Now is the time to future-proof your IT. Instead of waiting for the next funding shake-up, nonprofits should focus on optimizing IT spending, improving security, and making smarter tech investments that won’t leave them vulnerable.
This whole situation was a reminder that technology should be seen as a long-term investment, not just an expense. The right IT strategy can help nonprofits stay resilient no matter what changes come next.
Before making any changes, take a step back and evaluate what you’re working with.
- What software, systems, and tools does your organization rely on?
- Are you paying for things you don’t actually use?
- Are there duplicate tools that could be consolidated?
- Could you switch to a more cost-effective or free alternative?
Doing a Technology Efficiency Assessment now can help prevent budget shortfalls and make decision-making easier in the months ahead.
A lot of non-profits end up paying for software they barely use. Now is the time to clean house and make sure you’re only paying for what you really need.
- Review usage data - if no one is using a tool, cancel it.
- Reduce licenses if you’re paying for more than you need.
- Switch to non-profit discounted software (TechSoup has great options).
- Consolidate tools - if you’re using both Zoom and Teams, do you really need both?
These small changes can add up to big savings without affecting productivity.
When budgets get tight, security is often the first thing to suffer—but that’s a huge mistake. Cyber threats are only increasing, and non-profits are a major target for hackers.
Simple (and free) ways to boost security:
- Enable multi-factor authentication (MFA) for all accounts.
- Train your staff to recognize phishing attacks and scams.
- Use free cybersecurity resources from CISA, Microsoft, and other non-profit partners.
- We offer discounted (and free) cybersecurity assessments for non-profits!
A data breach can cost way more than prevention, so security needs to stay a priority.
If you’re still running everything on old-school servers or paying for physical storage, it might be time to switch to the cloud.
Ways to save:
- Use Google Workspace for Non-Profits or Microsoft 365 for email, storage, and collaboration.
- Ditch expensive on-premise storage and switch to a cloud backup solution.
- Take advantage of pay-as-you-go cloud pricing to scale up or down as needed.
Cloud solutions not only reduce costs but also keep your data safer and more accessible.
Just because federal funding is paused doesn’t mean you’re out of options. There are still ways to get support for your IT needs.
Where to look:
- Private tech grants – Many foundations fund technology for non-profits.
- Corporate sponsorships – Tech companies often donate software or services.
- Crowdfunding & donor campaigns – If your IT upgrade directly impacts your mission, let donors know.
Also, don’t forget to check TechSoup for free or discounted software!
If your internal IT team is stretched thin (or non-existent), consider working with an IT partner that specializes in non-profits. The right partner can help you:
- Find and eliminate wasted IT spending.
- Ensure your systems are secure and efficient.
- Identify cost-effective solutions tailored to non-profits.
At Charter Technology Solutions, we help non-profits navigate IT challenges and optimize their technology budgets.
