BLOG for ADVOCATES

We created this blog to share interesting advocacy related items that cross our desks. It can be anything from new research on funding for advocacy to examples of unusual advocacy strategies. If you have an item to share please send it to npaction@npaction.org.
NPAction Staff

Thursday, August 27, 2009

State Budgets Force Cuts for Nonprofits

State legislators across the country face declining revenue, and are forced to cut their budgets and either end or reduce payments to nonprofit groups. As the Wall Street Journal reports, "state budget gridlocks are halting payments to basic human services and causing thousands of homeless shelters, food pantries and senior centers to cut staff, reduce services or shut their doors." Some states have set up budgets giving less money to nonprofits that are expected to perform the same services for less or for nothing.

This comes at a time when nonprofits are already struggling to meet increased demands for help amid declining donations from individuals and foundations stung by last year’s market downturn. Collectively, state governments owe these nonprofits more than $15 billion in backlogged payments, according to Independent Sector, a coalition of 600 nonprofit groups and foundations. I coalition has petitioned the Treasury for funds from the Troubled Asset Relief Program, or TARP, to bypass state governments and go directly to nonprofits.

For example, in Minnesota organizations face an increasing demand for services, but are having to cut back on staff. The Minnesota Council of Nonprofits surveyed nonprofit managers to find out how the economy is affecting their programs. Click here to read more.

Current economic pressures are also reducing volunteer time, and "Americans are suffering from a 'civic foreclosure' that is limiting the range and depth of their civic engagement." According to a new survey conducted for the National Conference on Citizenship, many have reduced their volunteer work. "The survey's results reflect the hard choices Americans have made during the downturn, with 72 percent of respondents saying they have cut back on time engaged in civic participation, which includes time spent volunteering, participating in groups or performing other civic activities in their communities." Opportunely, the report also found that Millennials had the highest rate of volunteering, at 43 percent. In addition, low-income Americans are still finding ways to give back to their communities.