Gov't. Funding Cuts Hurt Nonprofits July 14, 2006
Funding Tips & Trends
Recent federal, state and local budget cuts are having a negative impact on the majority of U.S. nonprofit organizations, according to a new survey.
Philanthropy News Network reported July 12 that a survey from the Johns Hopkins Center for Civil Society Studies via the nonprofit Listening Post Project found that 63 percent of nonprofits said that local, state or federal government budget cuts were presenting a "very significant challenge"; programs serving families and children, the elderly and disadvantaged communities are being especially hard-hit.
"This is particularly significant because these agencies obtain close to 40 percent or more of their total income from government, and because private fundraising has also been under pressure," said Lester Salamon, director of the Listening Post Project.
Public-sector funding cuts are negatively impacting client services, added Katie Sloan of the American Association of Homes and Services for the Aging. "Nonprofit aging service providers are having to turn away clients, reduce staff, and/or dip into reserves," she said.
Other challenges detailed in the survey included fundraising and rising health-benefits costs.