Shutdown Futher Shuts Out Nonprofits

We find ourselves at the turn of another year, gifted the opportunity to take stock of the last and make plans for the new. Today, we may only be halfway through it, but it seems we will someday look back on the decade of the 2020s as a time of transformative change. Through the pandemic, record inflation, major policy shifts and the cultural transitions that come with it all, many of us who have been in the workforce a long time may agree that many of the ways we do business won’t look the same in the future as they have in the past. This is especially true of the nonprofit sector, which has been on the above-described rollercoaster ride along with everyone else, and additionally has experienced major, systemic changes in 2025 to the nonprofit funding environment. This includes but is not limited to cancellations of government contracts and grants as well as increased competition for private charitable funds, among myriad other factors. With all this in mind, year-end charitable giving is as important as ever! Both charitable giving by individuals and volunteerism have been on the decline for the past two decades. The rising cost of living we’re all feeling this year is only likely to continue this trend. Simultaneously, we know Oklahoma is a state of great need. Statistics show we are the eighth poorest state, ranked 50th in education, ranked 49th in public health, and so on. One in five Oklahoma children lives at or below poverty level. And many of these needs have been exacerbated this year with disruptions to SNAP and other supplemental services. Charitable giving boomerangs in the economy. Charitable dollars support services that help keep Oklahomans in the workforce and paying bills, such as food assistance, dependable childcare, affordable health care services and many other “hands up” when neighbors are in need. Further, the nonprofit sector itself is the state’s third largest non-government employer. Please consider contributing to a cause that speaks to you and your family during this season of giving. Even if a donation isn’t in the budget, take this moment to map out how your family or workplace can set aside time in 2026 to give back through volunteerism or board service. Every dollar – and every minute – makes a difference. Wishing my Oklahoma neighbors across all 77 counties the very best for 2026. As I always say, we are stronger together!

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As someone who started my career in the for-profit world and has now served the nonprofit sector for decades, I find that there’s quite a lot of confusion among audiences throughout Oklahoma regarding what makes a nonprofit… well, not-for-profit. A nonprofit is simply a business that has been designated with a special tax status by the Internal Revenue Service because their operation is deemed to serve the public good. In many cases, nonprofits actually provide social services to citizens on behalf of government entities. Via this IRS designation, nonprofits are generally exempt from paying federal income tax. When you hear that nonprofits are “tax exempt,” this is the tax exemption being referenced. There are no guaranteed or automatic exemptions on state or local taxes – those matters are governed independently at the state and local levels. In Oklahoma, nonprofits are not automatically sales tax exempt. The time to change this has come. State Representatives Marilyn Stark and Suzanne Schreiber recently hosted an interim study to explore the impact an automatic sales tax exemption for nonprofits with gross annual revenues of $3 million or smaller may have on Oklahoma. I was pleased to be asked to join the conversation along with experts and other nonprofit leaders from across the state. Nonprofits today are operating in the same space with the same challenges as for-profit businesses – in addition to needing to make payroll and keep the lights on, we are seeing the impacts of skyrocketing inflation, tariffs and more. We are also seeing these and other factors increase charitable need among the Oklahomans the sector serves. When nonprofits see increased demand for their goods and services, this doesn’t mean more sales and money in the bank but rather a requirement of more outputs to provide more goods and services. More demand means higher cost. With all the challenges facing the nonprofit sector this year related to funding and operations, too many have had to pull back on services and staffing while others are looking at consolidation or even dissolution. While one could look at these changes coldly and factually as natural market fluctuations, the truth is that the loss of nonprofit services have very real – sometimes even life and death – impacts for our Oklahoma neighbors. This fact affects us all. Now is the time finally to offer sales tax relief to nonprofits. Every dollar saved goes back into the mission, not only because we want it to but – as nonprofits – it has to! Sales tax exemptions are available in Oklahoma for multiple for-profit industries (and, for the record, a few nonprofits have exceptions). However, an automatic sales tax exemption – especially one designated for the smaller nonprofits that need it most – is neither innovative nor untested. Based on self-reporting, there are at least 26 states that offer some form of blanket nonprofit sales tax exemption at the state level. Some of these are in our region. Oklahoma has spent years doing a great job of signaling to for-profit industries that our state is open for business; a rising tide raises all boats. Let’s strike that same attitude for nonprofits and show the sector that Oklahoma is open for nonprofit business, too, in order to provide a safety net for the Oklahomans who need it most. As I always say, we are stronger together!

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While I hope from the bottom of my heart that the federal government shutdown has ended by the time you read this, as of the time I’m putting pen to paper, it seems unlikely. Words like “deadlock” and “stalemate” continue to dominate headlines. However, whether the shutdown ends after three weeks, or four, or more, this moment is sure to have long-term impacts for nonprofits and the people we serve. Whether or not we as individuals support this year’s shutdown, the case can be made that our government is working as it’s supposed to, championing a process of checks and balances designed to ensure the will of the people is heard. But we can also likely agree that this situation creates a challenge – to say the least – for the millions of federal employees and contractors unsure about their futures. Supporting them, when needed, is one of many places nonprofits step in to fill the gaps. Religious houses offer spiritual guidance during uncertain times. Food pantries boost food security when dollars for groceries can’t stretch between paychecks. Free clinics administer health care when an emergency just isn’t in the budget. Local charities supply clothing when a child’s need for bigger shoes or a winter coat doesn’t align with timetables in Washington, D.C. The list goes on and on! My good friend U.S. Senator James Lankford, who was an Oklahoma nonprofit leader for many years before becoming an elected official, famously says that Americans have three safety nets – family, nonprofits and government. Thinking of nonprofits as a safety net for society offers a reminder that charities aren’t just here to serve unnamed “others” or those with chronic conditions that may seem distant from you and me. Rather, the nonprofit model exists to offer a hand up for our friends and neighbors whether they need support for one day or 365 days and whether the services are need-based or not. All of this goes to show how important nonprofits are in serving our society. So, it’s particularly troubling that nonprofits are already in the midst of a funding crisis. For many nonprofits that find an income stream in government grants and contracts – already in flux or cut completely due to DOGE cuts, dozens of Executive Orders and other measures – the current shutdown deepens the issue at a time when need for nonprofit services continues to rise. So, what can Oklahomans do to support nonprofits and, as an extension, offer a hand to neighbors in need? -Contact: Call or email members of the Oklahoma delegation in U.S. Congress to let them know you support nonprofits. -Volunteer: Contact a local charity and ask how you can help – every hour of volunteer time offsets labor costs and/or extends the organization’s reach. If you don’t currently have the bandwidth to volunteer your time personally, share a nonprofit’s posts on social media to help spread the word about charitable activities in your area. -Donate: Give what you can when you can. If you feel called, bump up your giving during these uncertain times. Every dollar makes a difference. If you or someone who know is experiencing challenges of any kind, I always say, “there’s a nonprofit for that!” Reach out to a service organization in your area, as help is only a Google search away. You are not alone. After all, we are stronger together!