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The Impact of Sequestration

Nov 5, 2013

How could sequestration affect your nonprofit? Colorado Nonprofit Association is a member of the National Council of Nonprofits who collected nonprofit sequestration stories.

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Nonprofit Sequestration Stories 

Federal:  The IRS recently announced that sequestration could increase health care costs for some employers.  This is due to an 8.7 percent reduction in the amount of the small employer health credit available to small businesses and nonprofits.

Statewide: The sequester would affect, among others, the people who maintain Fort Carson; breast-feeding and nutritional support for poor mothers; immigration and border control; and the hours national parks are open. Almost 4,000 fewer Colorado special-education students would receive support, 700 Colorado kids would lose access to school-readiness programs, and more than 100 teachers funded by Title I money could lose their jobs.

Denver:  According to the Denver Post, Mi Casa Resource Center reported losing 10 percent of its federal funding due to sequestration. Mi Casa helps Latino families- particularly Latinas- with business and entrepreneurial skills. The organization assisted 650 businesses, from food trucks to cleaning services that generated over $10 million in revenue in 2012.

Lakewood:  The Hospice of John experienced a $250,000 cut of federal funding.  Combined with other funding challenges, it announced its closure in July 2013 after 35 years of community service.

Brighton: The Metropolitan Denver Homeless Initiative, a local nonprofit, fears that cuts of $16 million in U.S. Dept. of Housing and Urban Development assistance under the sequester will adversely affect its ability to provide services, despite counting more homeless citizens this year than ever before.

Colorado Springs: Faced with sequestration cuts meaning the loss of 142 Head Start slots, the nonprofit Community Partnership for Childhood Development began raising funds privately by selling hand-decorated preschool chairs to make up the gap. They currently have raised enough to reinstate six spots.

Related Topics: 
Financial Management