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Philanthropy and President Bush’s Budget: the Key Proposals

April 19, 2001 | Read Time: 5 minutes

By ELIZABETH SCHWINN

President Bush last week proposed $258-million in new grant programs for religious

charities and other groups that provide social services.

The House and Senate will spend the next few months debating President Bush’s budget proposals as they draft their version of a spending plan for fiscal 2002, which begins October 1. The table below summarizes key items in the president’s budget that are of interest to charities and foundations. The plan is available online at http://w3.access.gpo.gov/usbudget.

Among the proposals:

Grass-roots charity grants. Among the new efforts proposed by President Bush is a $67-million effort that would assist religious and local nonprofit groups that help children whose parents are in prison or on probation.


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He also proposed a $64-million project to support faith-based and community groups that promote “responsible fatherhood” by helping fathers who are unemployed or have low incomes.

A proposed $33-million program would provide grants for local maternity group homes for teenage mothers and their children. In addition, Mr. Bush has sought $5-million for a pilot program that would enable federal inmates in four cities to participate in faith-based programs that prepare them for release from prison.

Mr. Bush also sought $89-million to establish a federal Compassion Capital Fund to help needy Americans. The $89-million is the first installment of $700-million Mr. Bush has proposed the government put into the fund over the next decade. The money would help community- and faith-based charities expand their programs or emulate model programs. The fund also would pay for research on “best practices” among charities.

Volunteerism. The President proposed a budget for the AmeriCorps national-service program that would support 50,000 participants in the program in the 2002 fiscal year, the same number serving this year. Mr. Bush’s budget proposes $237-million to pay for AmeriCorps awards in 2002, a $6.5-million increase over fiscal 2001. For the Corporation for National Service, the agency that oversees AmeriCorps and other service programs, the president sought $733.3-million, a $33-million decrease.

More elderly people could volunteer under the proposed increase in funds for the National Senior Service Corps, to $203-million, $14-million more than was allotted for the current fiscal year. Mr. Bush says he plans to increase annual spending on the Senior Corps so that it reaches $250-million by 2007. He says that would provide support for an additional 17,000 volunteers over five years.


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In addition, the budget would provide $20-million to establish a Silver Scholarship program, which would encourage older people to volunteer for 500 hours as tutors and mentors in after-school programs in exchange for a $1,000 scholarship that could be deposited in an education savings account for use by the volunteers’ children, grandchildren, or other children.

The budget would provide $15-million for a new Veterans Mission for Youth program to make grants to community groups that connect veterans and military personnel with young people through mentor, tutoring, after-school, and other programs.

Arts, culture, and technology. Mr. Bush proposes to freeze spending for the National Endowment for the Humanities at $120.5-million, the same amount provided this year, and for the National Endowment for the Arts at $105-million. In addition, Mr. Bush proposes to spend $80-million next year on community technology centers, up from $65-million this year.

Social services and health. Mr. Bush sought $505-million for the Promoting Safe and Stable Families program at the Department of Health and Human Services, up $200-million from the amount Congress provided for this year. Much of that money would go to support grants to charities. He also proposes to increase grants to local health-care centers — nonprofit groups that treat the uninsured — by $124-million, to $1.29-billion.

Tax breaks for charitable giving. Mr. Bush asked Congress to allow people who do not itemize deductions on their federal income-tax returns to write off a portion of their charitable gifts. In addition, he urged Congress to allow donors over age 59 to give money to charity directly from their retirement accounts without incurring taxes.


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The president also sought to increase the annual limit on charitable deductions taken by corporations, from 10 percent to 15 percent of a company’s taxable income.


Spending in fiscal 2001 Proposed for fiscal 2002
Arts and Culture
Corporation for Public Broadcasting1 $360,000,000 $370,000,000
Historic preservation $79,000,000 $37,055,000
Institute of Museum and Library Services $232,000,000 $192,977,242
National Endowment for the Arts $105,000,000 $105,219,000
National Endowment for the Humanities $120,000,000 $120,504,000
National Gallery of Art $76,000,000 $80,449,000
Smithsonian Institution $456,000,000 $494,100,000
Spending in fiscal 2001 Proposed for fiscal 2002
Community Development and Housing
Community Development Block Grants $5,113,000,000 $4,801,993,000
Grants to help low-income home buyers $1,800,000,000 $1,796,040,000
Homelessness assistance grants $1,023,000,000 $1,022,745,000
Housing Opportunities for Persons With AIDS $257,000,000 $277,432,000
Low Income Home Energy Assistance Program2 $1,400,000,000 $1,400,000,000
Public Housing Operating Fund $3,242,000,000 $3,384,868,000
Spending in fiscal 2001 Proposed for fiscal 2002
Education and Job Training
Adult education $558,000,000 $570,000,000
College-student financial aid $10,674,000,000 $11,674,000,000
Education for the handicapped $7,440,000,000 $8,425,595,000
Elementary and secondary education for poor children $8,979,000,000 $6,788,000,000
Fund for the Improvement of Postsecondary Education $151,000,000 $51,000,000
Head Start $6,200,000,000 $6,324,812,000
Job training and employment services $5,854,000,000 $7,809,000,000
Vocational education $1,238,000,000 $1,924,000,000
Spending in fiscal 2001 Proposed for fiscal 2002
Health
AIDS prevention and treatment $1,800,000,000 $1,800,000,000
Community Service Block Grants $600,000,000 $600,000,000
Grants to local health-care centers $1,164,000,000 $1,288,000,000
Family planning $254,000,000 $254,000,000
Health services for American Indians $3,073,000,000 $3,223,000,000
Individual Development Accounts (savings plans for the poor) $25,000,000 $25,000,000
Maternal and Child Health Services $714,000,000 $709,000,000
Maternity group homes 0 $33,000,000
Medicaid $128,853,000,000 $143,423,000,000
Medicare $216,000,000,000 $226,400,000,000
Promoting Safe and Stable Families $305,000,000 $505,000,000
Spending in fiscal 2001 Proposed for fiscal 2002
National Service
Corporation for National Service: $766,300,000 $733,300,000
AmeriCorps awards $230,500,000 $237,000,000
AmeriCorps program administration $31,000,000 $31,000,000
Learn and Serve America $43,000,000 $43,000,000
National Civilian Community Corps $22,000,000 $21,000,000
National Senior Service Corps $189,000,000 $203,000,000
National Service Trust $70,000,000 $10,000,000
Points of Light Foundation $10,000,000 $10,000,000
Silver Scholarships 0 $20,000,000
Veterans Mission for Youth 0 $15,000,000
VISTA $83,000,000 $82,000,000
Peace Corps $272,000,000 $283,000,000
Spending in fiscal 2001 Proposed for fiscal 2002
Scientific Research
National Institutes of Health $20,458,000,000 $23,209,000,000
National Science Foundation $4,414,000,000 $4,470,000,000
Substance Abuse and Mental Health Services Administration $2,957,000,000 $3,029,000,000
Spending in fiscal 2001 Proposed for fiscal 2002
Social Services
Aging $1,103,000,000 $1,098,000,000
Child-Care Block Grants $2,000,000,000 $2,200,000,000
Child Nutrition $9,623,000,000 $10,092,000,000
Child-welfare and child-abuse services $469,000,000 $453,000,000
Commodity Supplemental Food Program $100,000,000 $95,000,000
Compassion Capital Fund 0 $89,000,000
Developmental disabilities $134,000,000 $134,000,000
Domestic-violence prevention grants $210,000,000 $184,537,000
Drug-abuse–prevention grants to help people in low-cost housing $309,000,000 0
Education vouchers for foster children 0 $60,000,000
Faith-based program for prison inmates 0 $5,000,000
Food Stamps $20,326,000,000 $22,204,000,000
Foster care and adoption $6,401,000,000 $6,622,000,000
Juvenile justice $292,000,000 $291,000,000
Legal Services Corporation $329,000,000 $329,300,000
Mentoring children of prisoners 0 $67,000,000
Nutrition Program for the Elderly $151,000,000 $150,000,000
Refugee and Entrant Assistance $433,000,000 $445,000,000
Responsible fatherhood initiative 0 $64,000,000
Runaways and homeless youth $48,000,000 $48,000,000
Social Services Block Grants $1,725,000,000 $1,700,000,000
Soup Kitchens, Food Banks, and Emergency Food Assistance Program $145,000,000 $140,000,000
Temporary Assistance for Needy Families $16,689,000,000 $16,679,000,000
1. Figures shown are for fiscal 2003 and 2004 because money is appropriated two years in advance.
2. Figures shown are for fiscal 2002 and 2003 because money is appropriated one year in advance.

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