Obama Budget Proposes $50-Million to Help Charities Offer Social Services

President Obama has proposed $50-million in his fiscal year 2010 budget for a new program to help nonprofit groups improve their ability to provide social services to low-income and disadvantaged people.

The Strengthening Communities Fund, which was passed as part of the new economic-stimulus law, provides money to nonprofit organizations and state and local government agencies to offer training and management assistance to charities, with an emphasis on “increasing community access to public benefits.”

The stimulus law provided $50-million for the new fund, which Congress created to replace the Compassion Capital Fund, a program created by President Bush to provide money to religious and other charities. President Obama’s request would add $50-million to the Strengthening Communities Fund next fiscal year and sought no money for the compassion fund.

The Department of Health and Human Services, which operates the fund, said in its budget explanation (page 105) it is composed of two grant programs:

• The Nonprofit Capacity-Building Program, which offers money to organizations to provide training, management assistance, or money to small nonprofit groups, including religious and community-based organizations.

• The State, Local, and Tribal Government Capacity-Building Program, which offers money to help government agencies provide services to nonprofit groups.

Both programs seek especially to help charities advise low-income people how to get access to government benefits and tax credits.