Tracking the Impact of Sequestration on Nonprofits

The across-the-board spending cuts that went into effect March 1, 2013 weaken the ability of charitable nonprofit organizations that depend in part on federal and state funds to provide the community benefit services currently used by those adversely affected by the slow economic recovery.

In the coming weeks, nonprofits will face growing numbers of furloughed and unemployed people in need of their help. The Congressional Budget Office recently predicted that the sequester will cost 750,000 jobs, changing the debate from obscure budget terms to real-life impacts. Earlier this week, the White House released state-specific details of what the cuts mean in terms of local jobs and services to individuals. Here are some examples of the impact on Oregon.

As federal and state grants for specific human service programs are cut, a significant off-set of those services onto the nonprofit sector is expected. Higher unemployment will increase demand for nonprofits' services, particularly in healthcare, human services, education, and employment programs.

The sequestration-induced recession will depress the capacity of foundations and private donors alike to meet current and added demands for funding. Reduced giving will mean more cuts to nonprofits’ programs, operations, and personnel, creating a vicious cycle of unmet needs.

Oregon nonprofits are already stretched by an anemic recovery and slowed charitable giving. Some may not survive the hardship of these cuts.

Over the next two months, we ask that you tell us about how these cuts are impacting your ability to provide services.

We will use your stories and data to bolster our advocacy efforts on your behalf as we call on Congress to find a more reasoned solution, so that you can focus on delivering the critical services that sustain and enrich our communities.

Reach us by phone at 503-239-4001, ext. 103, or email us at info@nonprofitoregon.org.