Budget Impasse Cripples a Few Charities, but Bigger Cuts May Follow

Budget Impasse Cripple a Few Charities, but Bigger Cuts May Follow 1

U.S. Air Force/Katrina Heikkinen

Meals on Wheels says that automatic spending cuts that took effect this spring because of Congressional inaction have caused 70 percent of the group's programs to trim services.

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close Budget Impasse Cripple a Few Charities, but Bigger Cuts May Follow 1

U.S. Air Force/Katrina Heikkinen

Meals on Wheels says that automatic spending cuts that took effect this spring because of Congressional inaction have caused 70 percent of the group's programs to trim services.

Phone calls from homeless people and domestic-abuse victims keep pouring into Community Information and Referral Services. But increasingly the phones ring and ring with no answer.

The Arizona group, which directs callers to nearby shelters and other charities in the state, is experiencing the effects of the automatic spending cuts that are starting to squeeze nonprofits—and could soon become a larger problem unless Congress and President Obama make a deal to cut the budget