The Opportunity Behind President Obama’s 2011 Budget Proposal

The President announced a $3.7 trillion budget proposal on Monday.  In an effort to rein in spending, his pitch includes cuts to hundreds of domestic programs.  There are many that will argue back-and-forth about which entities should be cut (cutback) and which one’s shouldn’t.  The reality is, however, that these programs aren’t even a major expense for the federal government.

The Fed’s real expense comes in the form of long-term social programs.  Social Security, Medicare, and Medicaid make up approximately 40% of the budget.  This percentage will only increase as the baby boomers grow older.  Therefore, as a country, we have decided to prioritize funding retirement and health care accounts instead of taking care of the vulnerable in the short-term.

How does this affect local charities?  Generally speaking, the trend of the government’s budget priorities has already and will continue to put a lot of pressure on neighborhood non-profits.  This phenomenon, however, can be a real opportunity for our communities.
Local charities could become much stronger if we can change our mindset that it is important to be moreengaged as individuals.  Although there are many people that have dedicated many hours and dollars to local charities, there are others that don’t feel the need to “get involved” because they believe “the government” will take care of “the problem”.  Well, this probably never was the case and certainly won’t be the case going forward.

Common sense tells us that when a person volunteers and donates money to an organization (instead of tax dollars being funneled to the same group) they are going to have a better sense of ownership.  In addition, local non-profit leaders will have more freedom to spend monies when government mandates are not involved.

The real challenge seems to be how to get the word out for volunteer opportunities and needed donations.  Logistically, there needs to be an easy process for all groups to come together.