Sarah Ford | December 3, 2012

Sequestration is just one part of the so-called “fiscal cliff” coming at the end of this year

When the Joint Congressional Committee on Deficit Reduction — Fiscal Cliff Impact on Charitiesoften referred to as the Super Committee — failed to reach agreement a year ago, automatic cuts of $1.2 trillion went into motion that will begin Jan. 2, 2013 and continue until 2021 unless Congress takes action. Almost $55 billion will be automatically cut from domestic programs and another $55 billion from defense spending.

The challenge is the required cuts are based on the full federal fiscal year, which started on Oct. 1. The cuts will have to go even deeper in January since one quarter of the fiscal year already will have passed, warned Tim Delaney, president and CEO of the National Council of Nonprofits (NCN).

Many of those cuts will affect a variety of programs either provided by or through nonprofits via federal funding through the state, such as low-income housing, food banks and programs like Meals On Wheels.


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