Friday, August 21, 2026

President Trump's Smart Move to Cut domestic Nonprofit Funding

Recommendable! Probably, federal government funding of nonprofits is way too lavish!

In general, it should be left mostly to the private sector to fund non-profits!

How much of it is vote buying and/or government funding of partisan propaganda?

"In fiscal year 2025 the federal government obligated $36.3B in grants directly to 501(c)(3) charities that are not universities or hospitals — down from $43.5B in FY2024, a 16.5% decline ..."

"... But the question is: What obligation does the federal government have to support such groups, and what would happen if these groups had to rely more on private donations for their operations? ...

While the Chronicle refers to the problem of losing federal support and instead being forced to rely on “donors whose interests can be fickle,” those donors are definitely looking for some bang for their buck. And yes, the donors may decide to withdraw funds from organizations that are not accomplishing what they want. But maybe this will force organizations to be more responsive to a wider audience. ...

At least 30 percent of nonprofits receive government grants, totaling $300 billion annually, according to a Candid analysis. That’s almost triple the amount that private foundations give to the same groups. ...

The depth of these entanglements becomes apparent on the rare occasions when the relationships break down. In 2024, the MacArthur Foundation withheld a grant of $625,000 from the San Francisco District Attorney’s Office until the office showed that it was “fully committed to the goals and strategies” of criminal-justice reform. [What! How is that even possible!] ..."

Trump's Smart Move to Cut Nonprofit Funding | American Enterprise Institute - AEI

What happened to federal grants to charities in FY2025? (This report provides annual data only for only two years, i.e. 2024 & 2025. This is lousy and deceptive!)

Federal Grants to Everyday Charities Fell 38% in Trump's First Months – Chronicle of Philanthropy (This report provides monthly data for only for two years, i.e. 2024 & 2025. This is lousy and deceptive!)

How reliant are nonprofits on government grants? "Delve into data to learn how many nonprofits rely on government grants—including which types of organizations and U.S. states receive them most–and discover what a potential freeze of federal funding may mean for the sector as a whole."








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