For thousands of nonprofits across the state.

An executive order by President Donald Trump freezing federal spending on loans and grants has left them uncertain about how they will continue to operate.

Last week, several nonprofit leaders attended a daylong summit hosted by the Kentucky Nonprofit Network to learn how to make solid financial decisions in a time of uncertainty.

This event today is all about nonprofit financial management.

So really teaching nonprofit leaders, some of whom are finance people, some of whom are not really how to understand and better use their financials to make smart, strategic decisions, especially as we're in an environment right now where nonprofit funding is up in the air, everything feels a little bit uncertain.

So really helping leaders understand their numbers.

I've seen a couple of administrative turnovers.

I think this is the first one where federal funding was immediately addressed as, being a possible loss to our nonprofit and then many others.

Because we are a federally mandated program, we receive state and federal funding, to to meet our mission.

We know that 66% of Kentucky's nonprofits receive some part of their revenue from government funding.

So it is a huge impact, again, for those directly receiving funds and those who partner with those organizations, because when kind of the nonprofit ecosystem has a void, somebody else typically has to step in.

It's the federal funds are cut in the way that, you know, we're seeing projected.

There's not enough individual donor base to make up for that.

I think we are, anxiously watchi do some additional advocacy in the state, do a lot more donor engagement and talks and, figure out how to, you know, better diversify our income.

He also talks about forecasting.

So really, you know, sort of being able to predict into the future your organization's revenue and expenses, and especially in today's climate, where, you know, federal funding for nonprofits is changing by the day.

Really being able to, you know, have this forecast will help organizations be stronger and more sustainable.

I think ultimately, organizations, if this cuts come to fruition or the policies continue, will have to make decisions about core program.

What can we continue to offer and how do we fund that?

What programs can we no longer offer and then that ultimately can someone else pick those up?

Well, we have to lay folks off.

And then, of course, they're all trying to raise additional private dollars.

Ada tells us that to completely cover the amount, the federal dollars that are flowing into the nonprofit sector would require a 282% increase in private philanthropy.

I would love to see that happen, but it's very unrealistic.

So organizations are trying to raise money, but recognizing the number of folks competing for a very limited amount of dollars, and the tax incentives for the majority of donors to donate to charity no longer exists.

So so we're saying to Congress, we need charitable giving tax incentives to encourage more people to give.

And we're also saying that Congress and the white House, these are vital programs in your district, and we need to protect the work that nonprofits are doing on government's behalf, because communities don't drive without nonprofits and their work to support their constituents.

The Kentucky nonprofit network helped push for House Bill 622 and the Kentucky legislature.

It's a measure that reform state grants and contracts with nonprofits and requires prompt payment on bills.

State lawmakers passed the bill this session and now awaits the governor's signature.