Nonprofits face impact of sequestration
March 05, 2013
The automatic spending cuts that are included in the sequestration are expected to have an impact on United States citizens across the country and the nonprofit organizations that support them, according to recent backlash from organization leaders.
"How sequestration will affect individual organizations and individuals and families is not entirely known. But, we project $30 billion in cuts across human service programs and another $11 billion cut from Medicare," president and CEO of the National Human Services Assembly (NHSA) Irv Katz, told the Nonprofit Times.
While sequestration spares a number of important organizations, such as the Children's Health Insurance Program, food stamps and Medicaid, which benefit low-income families through the U.S., it did not save many programs that were deemed discretionary in Congress' annual appropriations decision, according to The New York Times. As a result of these budget cuts, affected programs will not receive the federal funding upon which they previously relied to support programs and projects.
In fact, the Office of Management and Budget will see a 5 percent funding drop that it projects could translate to 70,000 fewer children in the Head Start program, 7,200 special education teaching positions eliminated, 4 million fewer meals served to seniors through the Meals on Wheels program and 7,400 fewer HIV patients receiving potentially life-saving medications through the AIDS Drug Assistance Program.
Nonprofits that are preparing for budget cuts may need to gain additional control of their accounting process and increase online fundraising efforts to keep important programs funded.