To help grantmakers understand the impact of the Reagan administration's economic program, the author examines the program as a whole, particular budget areas, and likely effects on grantors and grantees. Chapter 1 profiles the Reagan program's reductions in federal spending, regulation, and taxes. The author notes the areas cut, losses for nonprofit organizations, the effects of block grants, agencies to be eliminated, and tax impacts on charitable giving and foundation grants. A closer analysis of the Reagan budget, in chapter 2, first assesses the general impact on entitlement programs and the social "safety net" and then focuses on areas of interest to grantmakers, especially social welfare, education, health, income assistance, environment and conservation, arts and culture, and neighborhood and community groups. The third chapter analyzes the implications of the Reagan program for grantmakers. It looks at the amounts of aid needed to make up the cuts, grantseekers' expectations, and grantmakers' current responses to the situation, including individual grantors' activities, collaboration among grantmakers and between public and private agencies, and actions to strengthen management capabilities. Two appendices list 27 organizations that have analyzed the Reagan economic program as well as programs targeted for elimination in 11 federal departments and agency groups. (RW)