Some Nonprofits Push for Increased Federal Involvement

Problems of poverty, climate change and limited access to quality health care and education are so widespread that some philanthropists are convinced that government cannot solve them alone.

Jane Wales, a veteran of the Carter and Clinton administrations who founded the Global Philanthropy Forum, said government would be smart to leverage the "core capacities" of the nonprofit and corporate worlds. "Look at what's in the inbox of the next president," Wales said. "These are crises that cannot be solved by the public sector alone."

Both of the presumptive presidential candidates have been receptive to these proposals.

Members of America Forward have met with Sen. John McCain (R-Ariz.), whose wife, Cindy McCain, is a philanthropist, and say he is open to using federal funds to support successful nonprofit initiatives.

"Particularly on education, he's been really resonant," said Kelly Ward, a director of America Forward. "He's talked about innovation and finding the best ideas around the country."

Sen. Barack Obama (D-Ill.), a civic activist before entering politics, is proposing programs that would use federal money to expand successful community-based initiatives. "There are ideas across America -- in our inner cities and small towns; from college graduates to seniors getting ready to retire -- that could benefit millions of Americans if they're given the chance to grow," Obama said in a speech last month.

Obama cited the Harlem Children's Zone, a New York nonprofit group that helps children through after-school activities, mentoring and family support, that could be a model for cities across America.

A few state governments have offices that serve as liaisons with nonprofit groups and service volunteers. In February, California Gov. Arnold Schwarzenegger (R) established a cabinet-level secretary of service and volunteering, the first in the nation.

In 2003, Michigan Gov. Jennifer M. Granholm (D) created a first-of-its-kind Office of the Foundation Liaison to broker partnerships between state government and philanthropies. Karen Aldridge-Eason, head of the program, said it has "broken down silos everywhere."

Nationally, some nonprofit leaders consider the White House Office of Faith-Based and Community Initiatives a model. Established by President Bush in 2001, it helps churches and religious nonprofit groups expand their services by making federal grants more accessible. Critics have raised concerns about the separation of church and state and have said the office gives ministries and politically connected groups an unfair advantage in competing for millions in federal funds.

The fairness question was also raised last year about a secular nonprofit group called Concurrent Technologies, which reaped millions in federal money through its connection with the powerful Rep. John P. Murtha (D-Pa.).

Although White House offices have the ear of the president, there are limits to what they can accomplish. Some say a better model is the Small Business Administration, a federal agency established in the 1950s that provides counsel, loans and other assistance to businesses. Such an agency could help nonprofit groups, particularly smaller ones, with such basic needs as navigating tax laws and applying for grants.

"There is no instrument in government other than the oversight function that provides any meaningful support to groups, especially small groups," said Diana Aviv, president of the Independent Sector, a national association of nonprofits.

With federal and state governments recording huge budget deficits, the burden on charities to deliver basic services is likely to increase. "Without a doubt, there's a greater need, more than ever before, for the nonprofit sector," Lewis said.

The number of new groups has soared in the past decade and Tim Delaney, chief executive of the National Council of Nonprofit Associations, said it is only a matter of time before they partner on their own.

"Most nonprofits, if you look at it in human terms, are between toddlers and teenagers," he said. "We're coming of age and still learning to collaborate."