September 02, 2014
How the shutdown affects associations and nonprofits

10/15/2013

Association TRENDS

If you're an association or nonprofit doing business with the federal government, this shutdown has just made it harder for you to do your work.

The challenges are two-pronged: there are both performance and contract considerations, according to Dismas N. Locaria, Esq., of the Venable law firm's DC office.

As part of the shutdown, nonessential workers cannot report to work. So, if your association is performing work for a federal agency, and the contract calls for you to make a daily report, those reports will likely not be seen during the shutdown. Also, issues that require approval from the governing agency also will sit in an in-box until the shutdown is over. And even after the government gets back to work, those reports and requests have piled up and will be answered in the queue.

Locaria cites additional problems on the contract side, where government is typically more involved. One of the biggest concerns is if your staff members work remotely at a government installation, will they be able to get in to the building? Whether they're even allowed to work is another question, he said. Each agency defines essential and nonessential workers differently. But in general, contracts that already have money obligated to them will continue, he said.

The takeaway is, "it's going to take time to unwind this shutdown even when the government gets started, to get back to usual," Locaria said.

To see a more detailed article on how the federal shutdown will impact associations and nonprofits, including payments, go to www.Venable.com.


Association TRENDS