In an op-ed in The Daily Signal, “Overdependence on Government Funding Poisons the Nonprofit Sector,” Philanthropy Roundtable Visiting Fellow Jack Salmon outlines his new paper showing the impact of growing government reliance in the nonprofit sector and why this is a threat to nonprofit independence and a thriving civil society.
Below are excerpts from “Overdependence on Government Funding Poisons the Nonprofit Sector”:
“Nonprofits are the beating heart of America’s civil society. Neighbors helping neighbors, churches serving the needy, communities coming together to solve problems without waiting for Washington. Alexis de Tocqueville marveled at this spirit nearly two centuries ago, calling it essential to our democracy.
“That independence also relies on separation from the state. Yet today, almost one-third of nonprofit revenue comes directly from government funding. For large organizations, it’s closer to half. Instead of being citizen-driven, too many nonprofits are becoming taxpayer-financed instruments of government.
“This shift isn’t just unhealthy, it’s dangerous. As documented in a new paper for Philanthropy Roundtable, “The Growing Dependence of Nonprofits on Government Funding,” federal grants to nonprofits have more than doubled since 2008, with most of that growth occurring since 2019. This dependency hollows out the very qualities that make civil society strong.”
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“If America’s nonprofit sector is to remain the backbone of self-government, policymakers must reverse this trend. That means reducing structural reliance on federal dollars and ensuring nonprofits stay accountable to the people they serve, not to Washington.”
Please continue reading at The Daily Signal.
