BILLINGS — As the government shutdown enters its 30th day, nonprofits across the state are beginning to feel financial strain.
Allies in Aging CEO Erika Purington said her Billings-based organization is fortunate to have reserves that will help them weather the shutdown in the short term, but she’s concerned about other nonprofits that may not have the same financial cushion.
Watch Allies and Aging CEO Erika Purington talk about the shutdown:
“We at Allies in Aging are very fortunate that we have a good reserve. We will be able to cover, but there are a lot of nonprofits that won't,” Purington said Thursday.
For now, Allies in Aging is continuing its services for those 65 and older and may even see an increased demand at meal sites, which offer affordable meals for seniors.
Nevertheless, Purington expressed uncertainty about how long they can maintain operations if the shutdown continues.
“There hasn't been language to suggest that it's going away anytime soon,” Purington said. “I think Allies in Aging... we will feel the ripple effects of this. There are other nonprofits, especially in the social service world, that for sure are going to feel it. Very direct, a very direct impact.”
Sarah Saadian with the National Council of Nonprofits said that many organizations in the sector already operate on extremely tight budgets, making them particularly vulnerable during government shutdowns.
“These organizations often are operating with the shoestring budgets. They're making every dollar stretch, so they don't have a financial cushion to keep them going when there's a government shutdown,” Saadian said.
Purington said that running a nonprofit faces the same financial realities as any business, and difficult decisions may lie ahead if the shutdown persists.
“At some point, when your expenses outweigh your revenue, it's just like any business,” Purington said. “You got to figure out what you're going to do, and that might mean capping programs. Which we would, which would be really the very last thing we would do.”
Saadian warned that the longer the shutdown continues, the more severe the impact will be across Montana.
“The longer this continues, the more nonprofits in Montana are going to be impacted, and the more it's going to hurt the state and its ability to address the needs of its citizens,” Saadian said.
