One of a series of articles focusing on nonprofits, needs, and people helping.
First of two parts. See part 2, “Economic downturn not the only challenge for regional philanthropy”
By MICHELE MILLER HOUCK
DavidsonNews.net
A tale of philanthropic woe spun out across the Charlotte region during 2009. The litany of fund-raising shortfalls and funding cuts at non-profit agencies was surpassed only by the pressure of growing need amid the economic downturn.
The Financial Times reports government funding of non-profits in North Carolina and Charlotte-Mecklenburg was down 5 to 10 percent. Funding organizations United Way of Central Carolinas and Arts & Science Council saw pledges fall 37 percent and 33 percent, respectively. Corporations, foundations and individuals are giving as little as 5 percent and as much as 30 percent less than they did last year.
Volunteers prepared to distribute more than 800 bags of Thanksgiving groceries in the gym at Ada Jenkins Center the Monday before Thanksgiving. (David Boraks photo)
In north Mecklenburg, Ada Jenkin’s Loaves & Fishes food pantry helped 900 families with Thanksgiving dinner this year, a 300 percent increase over last year. Overall pantry usage is up 64 percent from the same time a year ago.
“The need is so great right now,” Ada Jenkins Executive Director Georgia Krueger said. “I have never seen so many people here as I have the last few days. The line for services was down the hallway, out the door and around the side door. I cannot remember a time when we had to cut off the pantry before the hours were over because we just could not accommodate another person.”
Regionally, Crisis Assistance Ministries reports a 100 percent increase in requests for services versus two years ago. At Goodwill, the increase is more than 250 percent, and Salvation Army Shelter is housing 16 percent more. Unemployment tops 10 percent.
And in Charlotte-Mecklenburg, the need for higher capacity is evident. More than 4,000 area non-profit organizations will see a combined decrease in revenue of almost $150 million this year.
Many of these numbers were brought to the fore by philanthropic think-tank The Bridgespan Group in a recent presentation commissioned by the Foundation for the Carolinas for the 2009 Non-Profit Summit on Nov. 10. In the face of this crisis, regional funders are responding.
“We’ve had a shift in focus towards food, clothing and shelter – ‘safety net grants,’” says Kristi Tesky, Charlotte Community Affairs Manager for Bank of America. “We’ve seen requests for services increase incredibly over the past few months, and it is part of our responsibility to not pull away even in the face of reduced inflows. Non-profit agencies are at a real crossroads, and we think it is important to respond.”
Holly Welch Stubbing Sr., vice president for client services & legislative affairs at the Foundation for the Carolinas, said: “Right now many funding organizations feel like it is enough to just give the money to plug the holes – no strings attached. The sense is that people are really hurting right now, and it feels like the right thing to do to just help out.”
Goodrich Community Affairs Director Kelly Chopus chairs the Charlotte Community Affairs Professionals Group—a group that started three years ago as a safe place for corporate funders to share information, stories and best practices. The group is working collaboratively to address the myriad of issues that have surfaced over the past year.
Ms. Chopus hopes the damage to non-profits will not be too great and that the best will survive, but admits that some of her colleagues are more skeptical. In the past year, she says the focus of the group’s philanthropy has changed.
“We are focused on caring for people in need,” Ms. Chopus says. “When I think of people who are standing in lines at social services agencies — people who have never been there before — I know that we have to strengthen the safety net for now and for what is to come.”
When asked what advice they are giving non-profits in the face of economic and philanthropic crisis. Ms. Chopus summarized the group’s three pronged roadmap to success for non-profits:
- Do your mission! Focus on your niche and don’t get off track.
- If there is a way to be more efficient or to collaborate, do it.
- Broaden your base immediately. For too long, non-profits in this community have relied too much on corporate support.
The Foundation for the Carolinas Community Catalyst Fund is addressing Ms. Chopus’s second point – that organizations need to streamline and collaborate. This $5 million effort funded by Leon and Sandra Levine – is dedicated to providing nonprofit agencies with support for strategic transformations, including innovative service models, collaborations, partnerships, and mergers. The Levines have allowed the community to put its money where its collective mouth is and fund the kind of transformation that it is demanding. According to a FFTC press release, “the initiative is designed to enable nonprofits to reposition themselves to meet a future characterized by increased demands for services and diminished funding.”
The program’s first round of grant applications were due Nov.30. Additional grant-making cycles are being scheduled throughout 2010, when the bulk of the funding is expected to be distributed.
So what if your nonprofit isn’t focused on food, clothing and shelter? How are other regional non-profits faring as the community stretches to meet emergency needs?
“We have found that individual donors are more likely to fund things like scholarships and programs with expendable gifts instead of endowment funds,” said Eileen Keeley, Davidson College’s vice president of Institutional Advancement. “They don’t want their gifts to get lost in the stock market like so much endowment money has during the the past 18 months. We’ve focused our efforts on getting programs started and said, ‘we’ll talk to you about endowing it later.’”
Ms. Tesky said Bank of America is still making grants in its other focus areas – those of community development and neighborhood preservation and education. Bank of America’s giving priorities are grounded in assisting people to gain financial security – through funding tax counseling, stay in school programs, college and career access.
“Although a greater portion of our dollars are going to the emergency areas of food, clothing and shelter, we know that we have to continue funding economic development and self-sufficiency initiatives,” Ms. Tesky said.
Two high profile projects in North Mecklenburg that aren’t specifically “food, clothing and shelter” programs have also been successful this fall — a $64,000 campaign to keep open the Davidson-Cornelius Day Care Center and a $66,000 campaign for the North Mecklenburg Senior Center. Both have raised enough funds to keep open their doors and are still successfully fund-raising to sustain existing programming.
Ms. Keeley also reports record fund-raising for Davidson’s annual fund over the past year. “We really focused on the Davidson Trust in our annual giving program this year. The Trust supports financial aid for students who need it most. As an unfunded mandate, it was our emergency need and in this way really resonated for our donors. They responded very positively to keeping these kids in school.”
The Davidson Trust supports Davidson’s decision to eliminate loans, and instead to meet 100 percent of demonstrated need of accepted students through a combination of grants and campus employment. Students who never even considered coming to Davidson are then able to graduate debt-free.
COMING MONDAY
Even before the economic downturn, the way regional funders were giving away money had already begun to change. The United Way story has prompted ongoing questions about how the federated charities are running their organizations. Many funders are scrutinizing proposals more carefully. Funders – large and small – are interested in knowing their investment is being used wisely. See part two of this story Monday on DavidsonNews.net.
RELATED COVERAGE
Nov. 23, 2009, “Thanksgiving dinner for those in need,” a report on this year’s annual Thanksgiving food distribution at Ada Jenkins Center. Includes statistics on increased need at Loaves & Fishes pantry.
Oct. 22, 2009, N. Meck Senior Center will stay open, still needs funding”
Oct. 2, 2009, Day care fund drive hits $64,000 goal, buys time for a plan”
Sept. 25, 2009, Non-profits spread the word through online campaign.”
June 26, 2009, “Churches try to make a difference in tough times.”
June 23, 2009, “United Way grants focus on critical needs”
Read more coverage from DavidsonNews.net of the non-profit funding crisis in 2009, CLICK HERE>
