The Chronicle on Philanthropy ($$) outlines how President Bush's budget request will affect nonprofits, charities, and foundations. While it proposes a permanent extension of the law that encourages older Americans to give money in their retirement accounts to charity, it would also cut many of the federal programs charities rely on. Encouraging giving to charity from a retirement account is no guarantee replacement for some of the federal programs that could be cut, almost nullifying the retirement account incentive. More Americans would have to rely on assistance from charities that are also struggling to find funds. The article also goes into some of the other tax proposals affecting charities, foundations, and donors. However, many charities that count on federal aid would be harmed by President Bush's budget. For example, the administration proposed a $2.4-billion reduction in spending on community and regional development grants, which cities and states distribute to nonprofit organizations, and he would reduce spending on the Medicare and Medicaid, federal health care programs for the elderly and the poor, by $101.5-billion over the next five years.