The federal budget is the blueprint for our country's priorities. It determines not only what programs and services are offered Americans at the federal level, but also those that state and local governments are able to provide in communities across the nation.

This site is designed to help you think about the impact that federal budget policies have on individuals, nonprofits, and beyond, and the nonprofit community's role as a partner with government. Use the resources provided here to engage in these important discussions and learn how to take actions that can help improve our nation’s fiscal outlook and strengthen the partnership between government and charitable organizations.

Federal budget decisions directly affect Americans in every community
The federal government provides funding for vital programs and services that Americans depend on, including access to quality education, care in sickness and old age, safe highways and infrastructure, clean air and water, and more. Many of these programs are administered by the federal government; many others are administered by state and local governments. In both instances, when lawmakers change funding levels at the federal level, the effects are felt in our communities.

Federal budget decisions directly impact nonprofits' ability to meet Americans' needs
Nonprofits and government work in partnership. Federal, state, and local governments administer many programs directly. In other instances, they provide grants to nonprofits or contract with private entities, including nonprofits, to administer the programs on their behalf. In total, the nonprofit community receives nearly one third of its funding from the government, and many individual nonprofits -- for instance, those providing human services -- receive a much larger percentage.

When government programs are cut, many nonprofits receive fewer resources and are less able to offer services upon which their constituents rely. In addition, when budget policy prevents government from having the resources necessary to offer these programs directly or to contract with others, Americans turn to nonprofit organizations for assistance. Regardless of their previous funding sources, these nonprofits must raise additional private funds to maintain, much less expand, these services. However, private contributions make up only 20 percent of the sector's revenue. Nonprofits could never fully offset the loss of government funds.

Recent budget decisions have significantly cut programs of importance to Americans and nonprofits
In recent years, programs serving Americans and impacting nonprofits, particularly non-defense discretionary programs, have sustained significant cuts. According to the Center on Budget and Policy Priorities, during 2005 and 2006 Congress cut funding for domestic discretionary services by a combined $13 billion in 2008 dollars. It enacted an additional, smaller $300 million in cuts in 2007.

According to CBPP, spending on non-defense discretionary services has also declined both as a share of the total federal budget and of the nation's economy. Total spending on discretionary programs -- defense, domestic, and international programs whose spending levels are determined each year through the appropriations process -- accounts for approximately 39 percent of the total federal budget. Of this percentage, lawmakers have allocated a growing portion to defense. Non-defense discretionary spending now constitutes less than half of total discretionary spending -- most recently totaling approximately 19 percent, down from 24 percent in 1980.

As non-defense discretionary programs have come to comprise a diminishing share of the federal budget, Americans have felt the effects. If we in the nonprofit community care about the effects these policy decisions have on our communities, we must take action to ensure Congress restores these cuts and adequately funds the services on which Americans rely.

Learn how to weigh in on the federal budget by visiting our Understanding the Federal Budget and Take Action pages.

 
Last updated July 23, 2007