ARTICLE
Smart Reform: Reducing Government Waste By Strengthening The Nonprofit Sector
Topics -
Updated - 03/14/2025
Cutting government waste does not mean cutting people off. We are calling upon Idahoans to help find a way to maintain essential services while making sure every dollar works harder.
At Idaho Partners for Good, we believe the key is to invest in solutions that empower diverse nonprofits, leverage community strengths, and promote long-term sustainability—ensuring that fiscal responsibility and social good go hand in hand. As a voice for the nonprofit and philanthropic sectors, we know we play a role in finding a way forward that increases the excellence in our nonprofit sector with the resources it needs to meet the needs of so many Idahoans who need affordable housing, safe childcare, food stability, up-skilling for a living wage, and quality education.
Let’s start by acknowledging government waste, which President Trump vowed to reduce. Let’s also acknowledge the need to target funding to specific populations. Health, education, and science data have identified problems for many decades that need specialized/tailored solutions based on a particular subgroup of our population (children, elderly, disabled, etc.). There are reasons to rethink federal funding, but in a surgical manner, not using a broad brushstroke.
Balancing fiscal responsibility with social impact is a challenge that requires precision, not a broad axe. While reducing government waste is necessary to ensure taxpayer dollars are used efficiently, we must also prevent vulnerable individuals from “falling off the cliff” by maintaining essential services. A more strategic approach helps nonprofits and local communities thrive without excessive reliance on federal funding.
- Moving from mediocre to high-impact programs: Rather than eliminating funding outright, how about pausing to explore what operational or leadership improvements might move a mediocre or average nonprofit to exemplary with the ability to measure their success?
- Strengthening community-based solutions: Local organizations are almost always better positioned than federal agencies to address social challenges efficiently. Shifting support toward community-driven initiatives led by those closest to the situation can reduce bureaucracy while ensuring services remain accessible. While we’re at it, let’s increase the use of targeted Block Grants & local flexibility, which works in Idaho — providing states and municipalities with targeted block grants allows them to allocate funds based on local needs rather than federal mandates. The exception is healthcare.
- Capacity building for nonprofits: The government should invest in nonprofit organizations, helping them strengthen their operations while diversifying funding sources to reduce long-term dependency on federal dollars.
- Encouraging philanthropic and private investment: A leaner government approach should not leave nonprofits struggling. Incentives for private giving and social entrepreneurship can fill funding gaps while promoting innovation. Idaho could be a great place for social impact investors who want to try solutions in a smaller way before scaling. In general, we need many more outside philanthropic investments in Idaho, too. Providing more tax incentives, including expanding deductions for charitable donations, can encourage more private investment in community programs.
- Preventing a service cliff for vulnerable populations: Efficiency reforms do not come at the cost of safety nets. Yes, smart policy adjustments can phase out programs gradually while ensuring people in need have alternative paths to support. But we also need transitional Support Mechanisms. As federal funding is reduced, transitional assistance—such as workforce development programs or temporary cash assistance—can help more individuals achieve self-sufficiency. While this is a good approach, we need to ensure the other pillars of affordable housing, food insecurity, and affordable childcare are part of the solution.
- Eliminating bureaucracy to maximize impact: Many government programs suffer from administrative inefficiencies. Simplifying and streamlining the funding process, which includes reducing administrative overhead so it does not take a whole separate staff member to meet the reporting requirements, is a big hurdle right now that both government and philanthropic agencies need to address.
- Leveraging technology: Digital tools can improve transparency, track impact, and reduce fraud, ensuring funds are used responsibly.
The path forward: Fiscal discipline & human-centered solutions
Cutting government waste does not mean cutting people off. With strategic reforms, you can maintain essential services while ensuring every dollar works harder. The key is to invest in solutions that empower nonprofits, leverage community strengths, and promote long-term sustainability, ensuring that fiscal responsibility and social good go hand in hand.
Lastly, the topic of DEI (Diversity, Equity and Inclusion) is an important one to us. IP4G supports the need for diverse perspectives because we have proven that it leads to better solutions. Inclusion is part of our DNA because every person deserves to be heard and have a seat at the table. We use equity as a tool because some just need a level playing field to be able to participate fully. Side note: Idaho is a great model for how the federal government keeps equity at the forefront of funding the needs of a rural state.
Join us as we forge a better future for Idaho nonprofits and philanthropic efforts!
“Whatever course you decide upon, there is always someone to tell you that you are wrong. There are always difficulties arising, which tempt you to believe that your critics are right. To map out a course of action and follow it to an end requires….courage.” ~ Ralph Waldo Emerson
Download the Nonprofit Sustainability Field Manual!
Comments