Monday, August 1, 2011

Should Nonprofits Say "Goodbye" to Government Funding?

The intense politicking and drama in Washington, DC over the past few weeks has left many seriously disturbed by the governing abilities of our Congress.  It's also left many wondering if it is truly the end of "The Empire."

While I'm thankful that a deal has been made, we will not default on our debts, and my elderly neighbors WILL receive their Social Security checks this month, I'm very worried about living in a society where, according to our President, "we will now have the lowest level of domestic spending since Dwight Eisenhower was President."

I am not an Economist, but I am CERTAIN that one trillion dollars in spending cuts coupled with NO increases in taxes will not bode well for nonprofits.  This ax will fall particularly hard on those charitable organizations that rely on government funding for a significant chunk of their budgets.

There are no easy answers, but it is clear to me that ALL nonprofits must do everything in their power to develop INDIVIDUAL giving programs NOW!  

An individual giving program will allow you to:

1) Continue to provide vital services to the communities you serve.
2) Build your base of grassroots support, if you decide to engage in political advocacy.
2) Become more empowered financially and less reliant on government support over time.

These are dark days ahead for nonprofits. 

What are you doing to say "goodbye" to government funding?



David Venn said...

Couldn't agree more. Nonprofits need to figure out a way to stay sustainable in a down economy and this means devising new ways to generate funds and create partnerships.

I wrote about this idea recently asking what backup strategies nonprofits are employing to continue their great work despite an economic downturn.

These are indeed dark days but the positive thing is that with the rise of corporate social responsibility, crowdfunding and private philanthropy there are still many opportunities for nonprofits to raise capital and continue their great work!

Jocelyn said...


Thanks for your reply! Will definitely check out your post.


GIFT-Grassroots Institute for Fundraising Training said...

GIFT and the Grassroots Fundraising Journal have excellent resources for building and improving your individual donor programs: