Donations flat for nonprofits serving basic needs

By Cherry Sokoloski
North Forty News

While the cloud of recession is dark indeed, Larimer County residents have been stitching a silver lining for those less fortunate than themselves.

Donors were generous during the holiday season, and nonprofits that help with basic human needs like food and shelter did not experience large declines in giving compared to last year. Nonetheless, donations were flat at best, and many agencies are worried about the months to come.

In particular, grant funding is threatened by the current economy, since foundations rely on earnings from investments to make those grants. Salud Family Health Centers, for example, has been notified by several foundations that funding will be down this year by an average of 30 percent. Crossroads Safehouse was told by a foundation that supports its teen program that it cannot award any grants this year.

As for individual and business donations, however, Larimer County residents stepped up to the plate in 2008, especially in December.

"People are seeing this as an emergency situation," said Heather Buoniconti of the Food Bank for Larimer County.

Many nonprofits saw smaller gifts coming in at year's end, but more of them. The net result, for many nonprofits, was about the same total donation dollars as in 2007, not as bad as many had feared.

Balancing this generosity, however, is the fact that demand is up for these basic services. At United Way's 211 referral center, calls for assistance tripled in 2008 compared with 2007. The Food Bank for Larimer County saw a 23 percent increase in people served during the last quarter of 2008, compared with the previous year.

In addition, costs continue to rise for nonprofits. "The bottom line is that organizations must grow each year just to stay even," said Greta Walker of the Denver Rescue Mission, which operates Harvest Farm north of Wellington. If there is a long period of no growth, she said, it spells trouble for programs and services.

While waiting for times to improve, nonprofits are trying hard to trim budgets in ways that will not impact the people they serve.

The following is a brief glimpse of how some nonprofits serving basic needs are faring in the current economy.

• Food Bank for Larimer County: Revenue for 2008 was about flat compared with 2007. "We tend to fare better than some other nonprofits because we are such a basic need," said Buoniconti. However, she predicts huge increases in demand during 2009. So far, the food bank is not reducing the amount of food given to each family, but Buoniconti said it's "hard to tell how long we can keep it up."
• Homelessness Prevention Initiative: This nonprofit seeks to keep people in their homes through rent assistance. Executive Director Sue Beck-Ferkiss said donations for 2008 were down about 4 percent compared with 2007, but it could have been worse. "Our saving grace is we're seeing a lot of new people," she said. Beck-Ferkiss also thinks there is a trend of donors supporting basic services in their own communities rather than national charities during this difficult economic time.
• Boys & Girls Clubs of Larimer County: Year-end donations in '08 were down about 10 percent from the year before, but the organization is working hard to cut operating expenses rather than programs. Two part-time positions have been eliminated and more volunteers are being recruited to help fill the vacancies. On the demand side, the Boys & Girls Clubs is seeing large increases in attendance since opening up a new facility in Loveland last month. "We planned for that in our budget," said development director Maria Swall, "but we're having to work extra hard to bring the money in."
• Project Self-Sufficiency: Donations for 2008 were about even with 2007, said assistant director Kathy Miner. "We made some pleas to our long-term donors, and people stepped forward to do more, recognizing that times were tough," she said. There is an increased awareness of poverty issues in Larimer County, she noted, and PS-S helps to address that issue by providing low-income single parents with education and counseling so they can make a living wage.
• Denver Rescue Mission: This nonprofit operates Harvest Farm, a long-term rehabilitation program for men. Walker said donors really came through in December, making the 2008 donations equal to those in 2007. However, demand for services is up 10 percent. "We are cautiously optimistic about the next few months and hope that the community will continue to support us, just as they have for the past 117 years," said Walker.
• The Family Center: This organization provides bilingual education for preschool children, after-school homework help and family education. Donations were coming in well until July 1, 2008, said building director Alan Cohen, but then started to drop. He anticipates a 50 percent decline for fiscal year '08-'09. "I need to scramble to get some more grant funding if I want to provide the same level of service," Cohen said. Cohen noted that many Christmas wish lists submitted by children in December included food as a wished-for item.
• Larimer Humane Society: Donations for '08 were slightly higher than in '07. "Regardless of the current economic climate, it's still important to people to take care of animals," said spokesperson Cary Rentola. She also said that LHS is not seeing an increase in abandoned animals; in fact, the return-to-owner rate for stray animals was up 14 percent in 2008. The number of owner surrenders was up slightly, however.
• Crossroads Safehouse: This shelter for victims of domestic violence saw individual and business donations drop by a third in 2008. The shelter's operating budget has risen, and "that's a double whammy," said executive director Vicki Lutz. She noted that tough economic times contribute to domestic violence by increasing stress on families. Job loss is also a risk factor for domestic violence. Clients are staying in the shelter longer since jobs are difficult to find, and that adds to operating costs. The entire Crossroads staff, Lutz said, is working longer hours, since two staff members left and have not been replaced.

Despite these challenges, Lutz and other nonprofit leaders are grateful to the community for supporting their organizations over the holidays.

Especially this year, with many donors unable to give at their prior level, nonprofits are trying to widen their circle of friends to make ends meet. This could be seen as competition for every donation dollar, but Swall of the Boys & Girls Clubs doesn't view it that way. She believes in a culture of abundance. "If we work together to expand the size of the pie, then we all benefit," she said. "We're all serving the same common good."