By Paul Hughes
The continued strong economy has been good for the county’s local nonprofits.
But, like Orange County’s economy, growth at the largest nonprofits here has softened as rising costs start to bite.
The 67 largest nonprofits operating here saw a 5% rise to $372 million in revenue for the 12 months through June from a year earlier, according to this week’s Business Journal list.
The list ranks nonprofits by revenue for the 12-month period.
This year’s growth wasn’t as dramatic as that seen a year earlier, when the nonprofits on our list saw a 9% increase in revenue.
Expenses were an issue for all of the nonprofits this year. They were up 8% to $294 million from a year earlier at the 67 groups, outpacing their revenue growth.
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The list is a cross section of local nonprofits. It mostly is made up of groups serving people, as opposed to art or culture nonprofits.
Thirty-eight nonprofits, or 57% of those on the list, reported higher revenue. Fifteen reported declines. The rest, 14, saw no change or were Business Journal estimates.
Topping the list again this year was Santa Ana-based Goodwill Industries of Orange County, which reported a 17% rise to $65 million in revenue.
Goodwill’s operations include thrift stores, donation centers and contract services for janitorial and other workers. The group also sells thrift store goods online at shopgoodwill.com.
No. 2 Orange County United Way saw a 3% rise to $30.8 million in revenue.
Tustin-based YMCA of Orange County, the county’s third-largest charity, had a 6% rise to $27.4 million in revenue.
The group runs eight local centers for kids and 80 sites on school campuses.
YMCA is working on several projects, including a renovation in Fullerton and adding a facility in Santa Ana near Segerstrom High School, Chief Executive Art Wannlund said.
“We want to expand,” he said.
The group changed how it seeks donations, he said.
Before, YMCA went after big donors just like everyone else.
Now, local YMCAs are working more with members and families and people who’ve been involved with the group in the past, according to Wannlund.
That means smaller donations, but more of them. The group has at least 10,000 donors countywide, Wannlund said.
“As they stay connected, and their capacity to give increases, they’ll look at the Y,” he said. “Going after the donors everyone goes after, you’re either going to get a smaller amount, or they’ve already established their giving. We all compete for the donated dollar.”
No. 5 Council of Orange County Society of St. Vincent de Paul was one of the decliners. It reported 17% less revenue, which came in at $25.2 million.
Hurricane Katrina diverted some money that might have stayed here, he said.
Denis Zaun, executive director of the local St. Vincent de Paul group, pointed to its thrift stores.
Sales there have been falling with competition from eBay Inc. and big discount retailers, he said.
“If you can buy a new shirt for $8 and we have one for $5, you might go to the traditional retail store,” Zaun said.
St. Vincent de Paul’s largest local store burned down three months ago, according to Zaun. It counts five stores across the county, six when the burnt Laguna Hills store reopens.
The group works with the homeless, convicts and former prisoners.
“These are not very sexy issues,” Zaun said.
St. Vincent de Paul cut expenses last year. They fell 16% to $24.8 million.
Zaun said he’s pushing community awareness and events to reverse the slide in giving.
The latest is a 5K fun run on Sunday in Huntington Beach, which includes trick-or-treating. The runners and walkers can come in costume.
“We’re trying to get the word out,” he said.
No. 6 The Salvation Army, with $20.1 million in revenue, has seen a falloff in sales at its thrift stores, said Lee Lescano, the group’s OC coordinator.
The Salvation Army has seen an increase in giving via the mail, he said.
The group has seen other challenges. Last year, Target Corp. said no to bell-ringers outside its stores during the holidays.
The “Christmas Kettle” program moved to other spots, according to Lescano.
The Salvation Army also lost $225,000 in yearly funding from United Way.
“There was an application process,” Lescano said. “They asked everyone to apply under new guidelines, and we didn’t make it. Many others didn’t as well.”
The group still gets “direct designations”,when a giver to the United Way selects the Salvation Army as the group they want to give to.
Hurricane Katrina helped boost awareness of the Salvation Army, Lescano said.
The Salvation Army in Orange County, “collected and sent more than a million dollars for Katrina,” Lescano said.
