Report Calls 2006 Budget ‘Frighteningly Bleak’ for Nonprofit Groups

The Bush FY 2006 Budget From a Nonprofit Perspective argues that cuts in discretionary spending and entitlements, the consolidation of programs, and other cost-trimming measures in the president’s budget will hinder charities’ efforts to help needy people. The report estimates that, after adjusting for inflation, defense spending will rise 2.2 percent in 2006 and homeland security by 0.9 percent, while all other discretionary spending will decline 5.4 percent. The future looks even more bleak, with discretionary spending on nondefense programs predicted to decline by 14 percent between now and 2010. The report also says that charities will be helped far less by minor tax changes to encourage charitable giving than they will be hurt by other proposals such as repealing the estate tax. The report suggests that instead of scrambling for government grants in their particular area, charities must cooperate and find ways to fight the long-term implications of President Bush’s tax and budget policies.

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