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So, what does the future hold for nonprofits that depend on government funding?  Not much good, so plan accordingly.  

Congressional battles over the budget have put social service grants squarely on the chopping block.

One course of action would be for nonprofit leaders to mobilize and fight to retain funding as Mark Rosenman suggests in this article.

Another wise move would be for organizations that are dependent on government funding to find alternative sources of public support.

This is where peer to peer fundraising comes in.  It has long been my contention that online peer to peer fundraising is a democratic way to raise big dollars that can replace government funding.

Instead of investing development dollars in grant writing, perhaps orgs should invest in generating self-sustaining peer to peer campaigns where their members raise money for them by asking their personal networks to give money towards the cause.

A peer to peer campaign may not completely replace all of the grant money but it can go a long way towards softening the blow of funding cuts.

The challenge is changing the way organizations think about where their funding should come from.  Should it come from the government that represents the people or the people themselves?  

If enough people find the services offered by an organization worth giving to, then peer to peer fundraising campaigns will effectively replace the money lost to funding cuts.  

If organizations can’t generate public support in the form of donations, then is it fair for them to expect the government to give them money?

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