Start with the notice and the agreement it concerns. A payment delay, stop-work instruction, amendment, and termination may require different responses. Review the effects on services, staff, partners, and existing commitments with legal and financial advisers.

Gather the agreement and the notice

Keep the award or contract, amendments, terms and conditions, budget, relevant correspondence, invoices, and the new notice. Record receipt dates and all stated response or appeal deadlines. Identify whether your organization is the direct recipient or works through a pass-through entity or subcontract. Ask counsel which rules and processes apply.

Create a factual summary of work performed, costs incurred, unpaid amounts, and commitments to staff or partners. Do not assume that every cost remains reimbursable or that funds may be drawn down in the usual way after a notice. Obtain agreement-specific advice about ongoing work, closeout, payment, and any challenge to the action.

Plan for service and cash-flow effects

Have finance staff model the timing of receipts and obligations under realistic scenarios. Identify the services most immediately affected and the decisions requiring board approval. Coordinate with partners so they receive accurate information about the portions of work that involve them. Employment and contractual decisions should be reviewed by appropriate advisers.

Find legal and practical support

Democracy Forward is a starting resource for exploring legal help involving potentially unlawful government action. The Nonprofit Legal Defense Network connects nonprofits with legal-support pathways. Check current scope, eligibility, and availability rather than assuming that any organization can take a particular case.

The United for Freedoms Legal Defense Fund is a resource to explore for legal-cost support. Its current website describes financial and technical support and applicable requirements. Funding or representation is not automatic.

The National Council of Nonprofits termination checklist offers a practical framework for federal awards. Use it alongside advice about your specific agreement and agency process; deadlines and procedures vary.

Explain what changes and what remains uncertain

Prepare consistent updates for staff, participants, partners, funders, and the board. Distinguish the confirmed funding action from decisions still under review. Avoid promising uninterrupted services before the financial and legal review is complete. Maintain an action list with an owner and due date for each task. This guide supports organization and communications planning and is not legal or financial advice.

Explore the Nonprofit & Foundation Resilience guide for related resources. For strategic or crisis communications support, contact Caitlin at CBKStrategies.

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