Des Moines nonprofits face $715,000 in budget cuts

Nonprofits across the US are facing major challenges. This article relates twenty Des Moines nonprofit programs that provide housing, food, health care and assistance to domestic violence victims could lose more than $715,000 in combined government aid as part of efforts to relieve stress on the city budget.

The city of Des Moines has used federal Housing and Urban Development money to partially support the nonprofit programs. But City Manager Rick Clark has recommended that the money be spent on code enforcement, community centers and neighborhood revitalization initiatives beginning in 2011.

In the past, the code enforcement, community center and neighborhood work has been partly financed with city property tax revenues, but general fund shortfalls of roughly $11 million over the next two budget cycles necessitate use of the federal money, Clark said.

The impact on nonprofits will vary, but 14 will lose more than 10 percent of their operating budget, with two nonprofits losing more than 70 percent of their revenue. Read more here.

Many cities and counties across the US are making similiar decisions. How should nonprofits respond? Are there other choices?