Government spending cuts have nonprofits anxiously trying to measure impact

Fundraising for nonprofits in the US via local, state and federal grant money is currently sitting on a knife edge. I’ve been reading countless stories from small-town newspapers and large city publications that interview different representatives within the nonprofit industry each of whom is trying to weigh up the potential implications of forthcoming government spending cuts. There is a great deal of speculation going on at present as to what can be expected, while the reality is that professional fundraising will inevitably need to find fresh ways to generate funds in light of government cutbacks in the coming years. Many programs have been earmarked for reductions of up to 50 percent with some even facing possible closure due to the changes, as a result a state of anxiety is now resting on the shoulders of many nonprofit decision-makers.

Last month the US House of Representatives introduced legislation that would completely eliminate AmeriCorps and national service programs within the Corporation for National and Community Service (CNCS). The repercussions of this are as deep as they are broad with thousands of nonprofits and community or faith-based organizations at least partially depend upon this funding to enable them to provide services. Contingency plans are already partially in place with many to follow, but the inevitable downgrading of service scope or operational hours and staffing will trickle down to both small organizations and large. There are far too many important programs impacted to list some of the larger names with a high dependency on government funding include Habitat for Humanity, Citizens Schools, Teach for America, Jumpstart and YouthBuild. You will have already noticed a trend; most of those facing the largest cuts are community based programs which does not bode well.

The repercussions throughout communities that continue to struggle through a very slow recovery from the recession has the potential to be catastrophic. Communities in need are often the last to feel the benefits of positive growth in the economy. At a time when unemployment is high, those returning to work need retraining and investment in housing and education is needed any cuts look to have a knock on effect that would be greater than under normal circumstances. Some of the statistics of potential support being lost are mind-boggling and not in a good way whatsoever, over 3,000,000 at-risk children face no longer receiving instructional support via programs such as Teach for America and Citizen schools. Three quarters of a million children and adults stand to face reduced support in healthcare programs and immunizations normally delivered by Community HealthCorps members and over 600,000 seniors and disabled people who relied upon Senior Companions face losing in-home support that currently exists.

Whilst balancing the budget is important and controlling government spending equally so, I believe there is an inherent societal responsibility for aiding education, job training and health care programs. While the government looks to save money in raw spending terms the fallout from reduced services can only result in a higher burden on the remaining service providers and in some cases the discontinuation of any help whatsoever. It doesn’t take an expert to realise that the downstream costs of communities lacking in education and basic health provisions only results in higher expenses at a later time, which is to say nothing of the humanitarian aspect that cutting services seems to contradict. The basic tenets of supply and demand teach us that if a need remains but the provision is withdrawn, the cost of providing the need will only escalate in the years to come.

Community-based nonprofit organizations in the US need look likely to need the support of the public more than ever when these cuts are inevitably finalized. The tasks facing such organizations to retool and find greater donor support in the next few years will be monumental but equally important.