The Impact of Sequestration Cuts on Nonprofits

nonprofit insurance“Budget cuts” is a phrase we’ve been hearing quite a bit in the last several years, and unfortunately, many cut backs are a negatively affecting individuals and organizations all over the country.

As much as $85 billion in cuts could be made across the board, a recent Platform Magazine article points out. And these cuts are likely to create new challenges for nonprofits and the people that work to make sure they are adequately funded.

The sequestration cuts, which are supposed to be spread out over a nine-year time span, are in fact predicted to hit nonprofits hard. Times Union notes that in the 2013 fiscal year alone, any nonprofits receiving federal funds will lose 9 percent of those funds. Decreased funding will significantly limit the programs and services nonprofits are able to provide to the community at large. This is tough news to bear seeing that demand for nonprofit services has significantly increased in recent years. Nonprofits are often “on the front lines in communities across the country addressing individual needs and solving local problems” in times of need (Council for Nonprofits).

Below is a glimpse of how members of the community will be affected as a result of the sequestration.

  • 4 million meals for senior adults will no longer be available
  • 600,000 women, children, and infants will be dropped from the WIC nutrition program
  • Services provided for 150,000 returning veterans will be halted
  • 370,000 adults and children will lose mental health treatment services (NonProfit Quarterly)


Is your nonprofit already feeling the effects of the sequestration? How will you be adjusting in order to continue to meet the needs of your community and provide these important services? Leave a comment to share with us.

The right amount of insurance coverage is crucial to a nonprofit organization’s financial well being. Lamb Financial Group can help your organization find the coverage you need at the best possible price. Contact us at 1.866.481.5262.

Image courtesy of nokhoog_buchachon /

Tags: , , ,

Leave a Reply