Nonprofits & Government Funding

As I have long advocated, nonprofits funded by the government should make the strongest effort to build a private philanthropic base to carry them over when political and budgetary decisions can—which they will continually—threaten their funding stream.

The current situation, as reported by The Chronicle of Philanthropy, is certainly one of those times.

An excerpt.

“As lawmakers and President Obama intensify their efforts to close the federal deficit, nearly every kind of nonprofit program financed by the government will have to fight to keep the budget scalpel at bay.

“This month’s battle over how much the government will spend in the 2011 fiscal year, which is more than half over, and a plan for the 2012 budget released by House Republicans both sent the message that programs to help low-income people, promote the arts, alleviate poverty overseas, and provide a range of other services will face a tough time preserving current levels of spending.

“In a compromise over the 2011 budget, Congressional leaders and the White House agreed to cut almost $40-billion from 2010 spending, leaving few non-defense programs untouched.

“In addition to an across-the-board cut of 0.2 percent, the plan--approved by both the House and Senate on Thursday--will trim money for the arts, community health centers, family planning, international aid programs, legal services for the poor, national service, and other areas that provide aid to nonprofits and the people they serve.

“The cuts were not as deep as the Republicans who control the House had sought, but many lawmakers have made it clear that their battle to cut the size of the federal government has only begun.”