There was never more need for the mega-wealthy to respond to Bill and Melinda Gates’ call to give up a huge chunk of their assets for charity than now. According to the Center on Budget and Policy Priorities, at least forty-five states have imposed cuts in major service areas, which depend on the government for 50 to 90 percent of their revenue.
In New York alone, with a budget deficit of $9 billion, 30,000 social-service agencies have yet to be paid since April. California has a budget gap closer to $20 billion, while Illinois is $11 billion short. Undoubtedly, hundreds of thousands of non-profit agencies are experiencing the financial strain, and most of them won’t survive if nothing is done to remedy the situation.
“I have contracts that go through August or December, and these agencies want me to continue providing services,” Christine Molnar, president of Safe Space NYC, told The Wall Street Journal. “My reserve will only carry me for a month. No business can operate this way.”
Even healthcare and educational institutions are not exempt. Public schools are forced to decide whether to get rid of arts or physical education classes if not both. Some schools are requiring their students to pay for their own materials and books.
At the same time, nonprofits are being forced to let go of employees, and cut or reduce programs that may have already been approved. Many of these programs would have benefitted homeless people, children from underprivileged families, and unemployed individuals, among others.
All this and more are happening despite the fact that the nation is already in recovery. The effects have just yet to kick in. Until then, taxpaying Americans could be facing months to years of poor education, inadequate health services, non-existent library systems and privatized zoos, museums and aquariums.
View a previously written post by Mouli Cohen about Philanthropy.