The Non-Profit Sector and the Federal Budget: Fiscal Year 2006 and Beyond 

This report released in 2005 analyzes the future effects of funding cuts to nonprofit organizations featured in both the Presidential and Congressional five year budget plans. Presidential and Congressional five-year budget plans for fiscal year 2006 through 2010 both cut federal allocations to nonprofit organizations. Health care sector nonprofits will not be affected as severely as non-health related organization, which may be cut by 4% to 21% by 2010 under the Presidential proposal. Under the Congressional proposal funding for non-health organizations will remain essentially flat, resulting in a 3% net funding increase by 2010. Medicare and Medicaid spending is projected to keep pace with inflation. This report further analyzes the effect funding cuts will have on charitable donations. It concludes that donations will have to double or triple to allow non-profit organizations to operate programs at current funding levels.