The Devastating Human Impact of Sequestration Cuts

THE DEVASTATING HUMAN IMPACT OF SEQUESTRATION CUTS The sequestration cuts of $85 billion will hurt the work of almost every charitable nonprofit in America - even nonprofits that do not receive any direct government funding. Sequestration's burdens on nonprofits Direct Indirect Increasing Community Needs Higher Operating Subsidizing Funding Funding Governments Cuts Losses Costs Who gets hurt by these added burdens? Millions of Americans, including this small sampling .. Our Friends, Our Families, and Our Families needing Individuals needing Children, seniors, and the disabled Our Returning Military Heroes safe shelter mental health needing food treatments Communities Direct and Indirect Funding Cuts Direct Funding Cuts Additional Waves of Cuts Almost every nonprofit with a federally-funded contract or grant will When states and local governments lose 9% funding from almost every federal lose approximately 9% domestic program, many may of its federal funding for Federal Fiscal Year 2013. reallocate and reduce their own funds, further decreasing funding for programs. Increasing Community Needs Burdens have already been increasing... Millions of Americans will be directly impacted with lost income, whether through job losses, furloughs, pay cuts, or cuts to federal unemployment benefits.?² In times of need, people turn to nonprofits for assistance. These new demands for nonprofit services are on top of the skyrocketing pattern seen over the past four years in response to the Great Recession. Percent of nonprofits reporting an increase in demand for their services over the previous year³ ↑ 85% 2011 77% 77% 2009 2010 73% 2008 Compounding Burdens Nonprofits have been in limbo for months, effectively subsidizing governments while states and localities waited to hear if the sequester would be averted. Additional burdens from not being paid full costs on government-nonprofit contracts. Cuts in spending do not cut human needs; in fact, they create more need. Many foundations were champions and stepped up giving during the Great Recession, but foundations simply don't have tens of billions of dollars to replace endless government cuts. Nonprofits will not be immune from higher costs for food (e.g., cuts to food and meat inspectors), transportation (e.g., cuts reducing the number of FAA controllers working to keep air traffic from congesting will increase costs of moving freight and passengers), and other costs, Take action today at www.GiveVoice.org Please visit www.GiveVoice.org to share your stories and data about how the cuts are hurting the work of charitable nonprofits in local communities so the public and policymakers can learn the real facts. Also, please share the www.GiveVoice.org site with anyone you know who works for, volunteers for, donates to, or is served by nonprofits. Together, we can make a difference for our communities. Sources * orfice of Management and Budget, Report to Congress on Sequestration 2013 (March 1, 2013). * Jonathan Weisman, Annie Lowrey, "Hard Budget Realities as Agencies Prepare to Detail Reductions" (New York Times, Feb. 23, 2013). * State of the Sector 2012, Nonprofit Finance Fund * Costs, Complexification, and Crisis: Government's Human Services Contracting "System" Hurts Everyone, National Council or Nonprofits (Oct. 7, 2010) NATIONAL COUNCIL OF NONPROFITS National voice. State focus. Local impact. www.councilofnonprofits.org © 2013 National Council of Nonprofits. All rights reserved.