Foundations might be challenged to help more later this year
May 03, 2013
Many individuals who find it hard to make ends meet are helped by various charity organizations and government initiatives. They depend on these entities for things like shelter, food, clothing, toiletries and other necessary items. However, a newly proposed budget cut might greatly affect a number of these people and cause nonprofits to have to step up and help even more than they already are.
According to the Philadelphia Inquirer, should the new House of Representatives federal budget be approved, food stamps would be cut by 18 percent, representing a $135 billion decrease over the next decade. With government aid potentially falling significantly, many are suggesting that foundations pick up the slack.
However, the news source also reported that this might be too big of a project for even the most generous of charities.
"Americans are very generous, but people don't appreciate the scope of poverty in the United States," U.S. Conference of Catholic Bishops director of the office of domestic social development Kathy Saile explained to the newspaper.
Nonprofit Quarterly also reported that the suggested budget put forth by President Obama also has sections that cut funding for the Community Services Block Grant, Welfare initiatives and the Low Income Home Energy Assistance Program block grant, which puts still more pressure on organizations.
Foundations and organizations that provide annual funding might benefit from nonprofit accounting software, which can help board members audit funds and make sure the correct amounts are being distributed to various programs each year.