Nonprofits have fared well this past year, led by Goodwill of Orange County,No. 1 again,and Orange County Community Foundation, which moved up two spots to No. 2.
Both nonprofits had sales increases for combined revenue of $111.2 million.
The list is made up of 50 nonprofits that serve the poor, disabled and sick. They also help women and children, work to find cures for diseases and help improve education. Arts organizations are excluded from the list.
Many nonprofits on the list are the OC arms of larger national groups and some are based in OC, such as No. 35 Ladera Ranch’s Laura’s House, which helps prevent domestic abuse, and No. 11 Think Together, of Santa Ana, which provides after-school academic programs at schools in California.
$475M in Revenue
For the group, revenue was up 12% to $475 million. The number of volunteers was up 7% to 238,218 and paid staff was up 3% to 4,806.
The 50 nonprofits were also able to hold down expenses, which increased a mere 1% to $361 million.
But things could change next year as the economy slows down and givers begin to hang on to more of their money.
Organizations that might be hit harder than the rest include those that build houses, such as No. 16 Jamboree Housing Corp. or No. 25 Habitat for Humanity of OC. They have continued to see increased building and land costs. The United Way of OC, which solicits funds at worksites, might see some contributors giving less next year.
Many nonprofits are gearing up to seek smaller donations from more people in addition to going after the big-gift donors.
Santa Ana-based Habitat for Humanity of OC, part of the national nonprofit, saw an 11% decrease in revenue to $4.6 million, attributed to a slowing economy.
The nonprofit also saw more expenses because of higher homebuilding costs and the opening of its second building supply store in Garden Grove.
OC Community Foundation is one that won’t be hurt as much. Its funding comes from the wealthiest philanthropists in the county, those who are selling real estate, houses, or collections and at the same time avoiding certain taxes.
The nonprofit, based in Irvine, had a 44% increase in revenue to $44.4 million. Its expenses went up 16% to $24 million. Some of that was due to hiring four staffers.
The Community Foundation works with wealthy donors who might want to set up a foundation or contribute to a specific cause and get a significant tax break.
The organization is seeing more “sophisticated” philanthropists who want to design original giving programs and do more than write a check, said Shelley Hoss, president of the OC Community Foundation.
They are typically baby boomer entrepreneurs who have built and sold successful businesses and are looking for means to give back to the community, she said.
Mark Van Ness, founder of Sperry Van Ness, is a prime example. After stepping back at the company he co-founded, he’s delved into a second career through “social enterprise,” which is philanthropy that generates a profit.
Think Paul Newman’s various food products, microfinancing or A Splendid Touch Catering, a for-profit business that employs mentally ill adults, funded by the John Henry Foundation in Santa Ana.
With the help of the Community Foundation, Van Ness set up the Social Enterprise Institute. He also set up endowed funds with the Community Foundation for his two daughters, so they could get involved.
The Community Foundation and the Young Presidents Organization formed a next generation philanthropy group to teach giving to those who will replace the big giver-types, for example, The Irvine Company Chairman Donald Bren and George Argyros, founder of real estate company Arnel & Affiliates.
The foundation accepts real estate and houses, anything of value. An OC-based chief executive who sold his business owned two homes in the South and donated them to the Community Foundation, which then marketed and sold the houses.
The Community Foundation does use its donations to act as a guarantor for bank financing. It can also make small grants with its investment earnings.
The foundation also has 100 acres in the Cleveland National Forest.
The nonprofit with the largest increase in revenue was No. 11 Think Together. Its revenue was up 272% to $16.7 million, thanks to Proposition 49, which funds after-school programs.
The proposition kicked in last year.
“We hired 1,000 people in 100 days,” said Randy Barth, executive director. “We did pretty well.”
Think Together was able to tap into the pool of unemployed school teachers, which has increased due to the decline in enrollment at public schools, he said. The decline is due to the decrease in immigration and the high cost of living, sending many low-wage working families out of state or to areas where they get more for their money.
Think Together also draws private funds from its annual gala in the spring. Last year it made $300,000 but this year, it’s scaling up the event with the kickoff of its distinguished speaker series and hopes to make $750,000.
Giving Less
People are giving but giving less, said Margaret Bayston, executive director of Laura’s House. It’s budgeting $3 million in revenue for next year. Its annual black tie gala netted $360,000 for the organization this year, thanks to big donors such as Julia Argyros, wife of George Argyros, and Bettye Aitken, attorney Wylie Aitken’s wife.
Laura’s House, which has been open for several years, has an emergency shelter and outpatient counseling services for victims of domestic abuse.
The organization recently moved from San Juan Capistrano to a cheaper building in Ladera Ranch. It serves the poor as well the wealthy.
It also hired a gift advancement officer.
“He’s going to be my rainmaker,” Bayston said.
“Our goal is to get people interested in what we do,” she said.
