The economic recovery predicted for 2011 has left many wondering when or if it will ever arrive. Unemployment hovers at around nine percent and housing prices are predicted to fall another five percent in the coming year. Many economists remain optimistic, but as we wait for a real recovery, our local nonprofits deal with the reality of today. Shrinking savings, lower or non-existent real estate equity, and unemployment have put an obvious strain on many neighborhoods, placing significant pressure on organizations trying to effectively meet the needs of the community.
Your Community Foundation is a big stakeholder in the health and well-being of our region’s charitable sector, investing a total of nearly $90 million over our almost forty year history of grantmaking. We have long understood how important it is to have effective, well-managed nonprofits in our midst that address issues and meet needs that government may be stretched to support or unable to provide. Nonprofits serve an exceedingly diverse population of residents, relying principally on grants and contracts to fuel their activities. When those dollars began to dry up three years ago, we and other grantmakers felt it urgent to understand how the sector was being affected. The result was the launch of an annual survey among nonprofits to assess the impact of the economy on their operations and services. This past week we released our third annual report in partnership with Allegany Franciscan Ministries and the Quantum Foundation.
The survey is a “temperature check” rather than a scientific undertaking. We ask straightforward questions about outlook, staffing, budget, challenges, successes, and what grantmakers might do better or differently to address the challenges that come with leaner times. Survey participants are located in, or provide services across, a broad geographic area inclusive of Palm Beach, Martin, and St. Lucie Counties. This area also overlaps where our grantmaking partners focus their grantmaking.
It’s always a revelation when we run the data to find that such a modest sampling from among the thousands of nonprofits that exist has, nonetheless, a Texas-sized footprint. Taken as a whole, survey respondents report an impressive tally of nearly 3 million volunteer service hours orchestrated this past year by their organizations. The total dollar value of that volunteer time is calculated at nearly $63 million. It is clear that the ability of nonprofits to leverage human capital is remarkable. This army of the willing multiplies many times over the limited staff capacity that is characteristic of many smaller nonprofit organizations.
The snapshot the report provides has some of the feel of the nonprofit sector being on a slow train toward destinations we don’t fully know. The findings conclude that the status of the nonprofit sector seems relatively unchanged from the 2010 survey, but leaves little doubt that the recession continues to adversely affect sources of public and private funding and erode revenue streams. Despite the struggle of social services agencies to sustain quality of services at present levels, the trajectory of need threatens to swamp the boat with ever increasing demand. The survey confirms the obvious - the effects of the economic recession have been devastating to many and the face of poverty is no longer limited to those chronically at risk but now includes formerly middle income families. Nor is it surprising that agencies continue to report this year that individuals and families are facing economic difficulties on multiple fronts, including unemployment, underemployment, lack of access to educational opportunity, and increasingly, the loss of access to healthcare.
Despite diminishing sources of funding, an important take-away from the report is that nonprofits are again proving themselves to be resilient, resourceful and creative in their effort to explore and identify the options and alternatives of doing business in drastically changed circumstances. We deeply respect and appreciate as grantmakers all that these organizations contribute and accomplish toward improving the quality of life for so many. So should we all.
You can find the full report here: Nonprofits in the Economy Study
The views expressed in this blog are mine and do not necessarily reflect the views of the Community Foundation.
