Possible federal funding pause: Panic or opportunity?
Carmen “Mely” Torres on turning uncertainty into opportunity in Puerto Rico.
Although Executive Order M-25-13 was rescinded, its initial announcement sparked uncertainty about the stability and distribution of federal funds. This highlights the vulnerability of access to these resources and the urgent need to strengthen management strategies.
Federal funds have been a key pillar in Puerto Rico’s economic development, education sector and health care industry, enabling the implementation of high-impact social projects within those areas. Rather than seeing this as a concern, it presents a crucial opportunity for the public and nonprofit sectors to enhance planning, foster strategic alliances and ensure the long-term sustainability of funding.
This moment of uncertainty should be seen as an opportunity to strengthen collaboration between organizations and government entities. Just as in the business world we talk about the need to pivot, this is the perfect time to do so in the public and nonprofit sectors.
Strategic alliances play a fundamental role in optimizing resources and creating more sustainable and impactful projects. Some key strategies include:
- Collaboration among nonprofit organizations: Smaller entities can join forces with larger organizations that share their mission, strengthening their structure and expanding their impact.
- Partnerships between municipalities and nonprofits: These collaborations can improve essential services in areas such as health care, education and victim support.
- Partnerships with the private sector: Businesses can contribute resources and expertise to strengthen corporate social responsibility programs and generate a direct impact on the community.
- Cooperation between municipalities and private companies: By maximizing resources, sustainable initiatives can be developed to positively impact communities.
Benefits of a collaborative approach
Adopting a cooperative approach not only ensures better administration of federal funds but also offers tangible benefits such as:
- Strengthening administrative teams for more agile regulatory compliance.
- Expanding the capacity to provide essential community services.
- Optimizing fund usage, leading to more robust and effective projects.
- Accessing new funding sources that an individual entity might not qualify for on its own.
- Identifying alternative resources outside of government funding with greater chances of long-term success.
The greatest beneficiary of these alliances will be the people of Puerto Rico. With a collaborative vision, we not only strengthen existing opportunities but also generate new initiatives that improve the quality of life in our communities. Now is the time to anticipate future changes by strengthening our strategies with purpose and innovation.
Carmen “Mely” Torres is the founder of On Point Strategy, the only woman-led firm in Puerto Rico specializing in financial management and federal grant administration. With more than 20 years of experience in regulatory compliance and financial transparency, Torres is a leading expert in effective grant management on the island.
