Top Ten Risk Management Exercises For Governing Boards of Libraries & Cultural Institutions During the 2025 Federal Shift

Question

Early 2025 has brought changes to stability of certain federal programs, funding, and governance. This instability is creating concern about access to grants, federal programs, and legal frameworks. What can our board do to address this?

Answer

2025 has INDEED started off with a great deal of instability to federal programs, funding, and governance. In this answer, we’ll call this phenomenon the “2025 Federal Shift.”[1]

Pass-Through Status for Libraries

Question

A local artist has asked for us to become a fiscal sponsor (act as a “pass-through” organization). Is this something a public library can do?

Answer

A "pass-through" is when a 501(c)(3) organization agrees to let a non-501(c)(3) use its tax status to accept grant money.  It’s a not uncommon arrangement; in fact, some 501(c)(3)’s are actually set up to do it so smaller and less established organizations can benefit from grant money.