The federal government and philanthropic programs have always struggled to get along, but they’re trying to put their differences aside to help programs grow.

• The government sometimes has a hard time following through on promised funding to nonprofits. For example, $50 million that might have been allocated to Teach for America’s 2011 budget met calamity when political pressure cut the funds completely.
• Program funding is moving away from direct government disbursements and toward foundations with grant applications and matching programs.
• As budgets are expected to tighten, the relationship between philanthropy and the government will only become more complicated.

Facts & Figures

• Teach for America received $18 million in the 2010 federal budget.
• The Investing in Innovation Fund, run by the Department of Innovation, gives up to $50 million to education programs that are able to match 20% of the grant with private money.
• 12 foundations have pledged over $500 million that they will use to either match winners or help programs that do not win government money from the fund.

Best Quote

“Partnership with government is going to continue to be hard. We should pursue it but with a sober recognition there will be curves ahead on the road that you can’t see coming.” – David Gergen, Professor at Harvard’s Kennedy School of Government