Nonprofits and Government Budget Woes

January 25, 2011 at 9:08 PM Leave a comment

This Charlotte (NC) Observer editorial addressing the state’s budgetary issues by the conservative John Locke Foundation isn’t necessarily of great interest itself, but we highlight it because it seems part of a trend we expect to see emerging over the next few years.

As state and municipal governments fall face greater debts and budgetary shortfalls, we expect to see nonprofits move – or be pressured to move – to act in response. Many may be expected to take up services state and cities de-fund; others (like this think tank) will mount advocacy campaigns to preserve or redirect government funding.

Of course, there’s simply no way nonprofits can take up spending on the scale of state governments; with the power to tax, states have a much broader pool of donors, so to speak. Advocacy by its nature is controversial, but might be a better investment for foundations in this case.

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Entry filed under: Economic Issues.

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