Seems like everywhere you turn these days, something needs money.
The U.S. says 10 of the big banks need a combined $75 billion on top of the billions they’ve already received. General Motors says it’s still burning through cash—about $110 million a day—and has until June 1 to avoid bankruptcy. California could need about $20 billion to close another budget gap, and the list goes on and on.
Meanwhile, the U.S. government isn’t asking for money but it certainly is busy spending it. On Thursday, President Obama revealed details of his proposed 2010 spending budget to the tune of $3.5 trillion. The budget does include 121 different spending cuts that amount to $17 billion.
Some of the cuts include money for hydrogen-fueled cars as electric cars gain momentum, and a $632,000-per-year educational attaché in France among others. Excuse me?
The Defense Department gets the most money in the new budget—$664 billion, and the Environmental Protection Agency gets the biggest boost, up 35%. Of all 11 agencies, Health and Human Services was the only one that saw a budget cut, by 2%. See breakdown.
Inside the budget and the White House, charity
Somewhere in this massive proposal is a request for $50 million to start the Social Innovation Fund to help some non-profits grow. Michelle Obama announced this tidbit on Monday in New York, at an event honoring the 100 most influential people as chosen by TIME Magazine.
The Obamas bring strong public service backgrounds to the White House—she was executive director of the non-profit Public Allies in Chicago; he was a community organizer. The family hosted a national day of service the day before taking office, and in April Obama signed the Edward M. Kennedy Serve America Act into law. The act provides billions of dollars to grow AmeriCorp from 75,000 members to 250,000 strong by 2017. Michelle Obama has been volunteering since arriving in Washington, and recently caught flak for wearing expensive designer “tennis” shoes to a soup kitchen.
In her remarks about the new fund, Michelle Obama said, “The idea is simple: to find the most effective programs out there and then provide the capital needed to replicate their success in communities around the country that are facing similar challenges. By focusing on high-impact, result-oriented non-profits, we will ensure that government dollars are spent in a way that is effective, accountable and worthy of the public trust.” Read her full remarks.
The big picture
In general it was a big week for philanthropy. In addition to the Social Innovation Fund, the Bill and Melinda Gates Foundation announced $100,000 grants to 81 projects employing innovative strategies to improve health conditions in developing nations. And the Ford Foundation is said to be donating $50 million to a group that helps cities buy foreclosed homes. At a time when so many for-profit organizations are seeking a little charity, it’s nice to see that some money is going toward new ideas and people in need. Seems like some of those for-profit organizations might benefit from a little innovation too.
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