After Tough Times, Nonprofits See 9% Rise in Giving in Past Year
By SHERRI CRUZ
Ask a nonprofit business to tell you about fundraising, and you’d better grab a cup of coffee.
At worst, raising money has been like pulling teeth in the past two years, they say, and humbling at best. From corporations to rich givers, the economic downturn took its toll on charitable donations. Many companies slashed their foundation contributions, while state and federal governments reduced or cut grants for nonprofits.
The bright side: Things seem to be looking up.
Based on the Business Journal’s first directory of nonprofit organizations, giving is up. The 30 nonprofits on the directory raised $203 million in the 12 months ended June 30, up 9% from a year earlier.
For nearly every nonprofit, the number of people,or “clients”,served was up, as well. The nonprofits served nearly 2.1 million people this year, up 2% from a year earlier.
The nonprofits are doing more with fewer workers and volunteers. Paid staff was down from 2,719 at the 30 nonprofits last year to 2,631 now, a 3% drop. The number of volunteers was down 22% to 93,978.
For the directory, 72 nonprofits were contacted and about half responded. All that provided revenue for the 12-month period were listed. Most provided other key details such as expenses and employment.
The nonprofits are listed alphabetically and are not ranked by revenue or any other measure. That likely will change next time around.
The directory is a cross section of Orange County nonprofits. It mostly is made up of human service groups as opposed to art or culture nonprofits. We look forward to expanding the list next year.
The smallest organization on the directory is Healing Odyssey, which helps women cancer survivors. It has a staff of two, and had $160,000 in revenue for the 12 months ended June 30.
The largest is Goodwill Industries of Orange County, which counts 567 workers and revenue of $41.5 million.
‘Humbling Experience’
Even with an uptick in giving, every dollar is a struggle, fundraisers said.
“It’s a humbling experience,” said David Wilk, executive director of Disney Goals in Anaheim.
Disney Goals, founded by the Walt Disney Co., runs after-school programs for kids in Garden Grove, Anaheim, Orange and Fullerton. Once a week, kids are taken to the Disney Ice skating rink in Anaheim to play hockey. They also get homework help.
Disney Goals works with about 100 children a day, Wilk said. Many have problems at home,uneducated parents, a parent in jail or abuse, he said.
“Home is not conducive to studying,” he said.
The majority of Disney Goals’ money comes from Disney Chief Executive Michael Eisner, the company and workers. Some of the Mighty Ducks of Anaheim event proceeds go to Disney Goals, as well.
Disney Goals’ budget this year was $890,000, down from $1.07 million last year. It has 10 people on the payroll, the same as last year. It also has 30 volunteers, double what it had last year. The Disney name is good for the program, according to Wilk. Kids love wearing the Disney shirts, he said.
But sometimes it’s a detriment when trying to win grants. Donors sometimes dismiss Disney Goals because they think it already has a big backer.
One of the most expensive costs for Disney Goals or any nonprofit involved in youth work is insurance, Wilk said.
“It threatens our survival,” he said. “It’s terrifying.”
The Boys & Girls Clubs of Garden Grove, another after-school program, began charging parents for childcare. It now charges $120 a month, which is low compared to for other child care centers.
The clubs also cut costs and reduced the number of events.
“You tread that fine line when doing events,” said Pat Halberstadt, chief professional officer of the Boys & Girls Club.
Events are costly to put on, she said. But, if done well, they raise a lot of money. They’re essential to get the word out about the clubs and to keep in touch with donors, Halberstadt said.
The majority of the funding for the clubs comes from corporate grants, foundations and private donors. The Boys & Girls Club had $3.8 million in revenue this year, up from $3.2 million last year. It cut its staff from 150 last year to 110 now. It pays workers between $9 and $15 an hour, depending on experience.
Like businesses, workers’ compensation premiums are squeezing the group.
“We pay the same rates as everybody else,” Halberstadt said.
The American Lung Association of Orange County, part of the national group, has used direct mail as a major fundraising source. But revenue from direct mail is way down, said Jaime Anderson, development director.
The association also turns to events, memorial gifts and private foundations for funding, she said. But not all of the money stays here. Proceeds from nationwide events such as a new five-kilometer “Blow the Whistle on Asthma” walk get divvied up. Ten percent goes to the American Lung Association of California and 20% goes to the national office. The rest stays here.
If Orange County’s United Way can be used as a barometer for fundraising next year, it looks like people are in a giving mood.
Initial results from the United Way’s fall campaign are good, according to Colleen Sandrin, executive director and chief operating officer.
The United Way raises funds primarily through workplace payroll deductions. The money then is given to local nonprofits starting in July.
The United Way has been emphasizing increasing the number of people who are giving rather than the amount they are giving. It’s also soliciting larger sums from individuals.
