Don’t tell local nonprofits that the economy’s in recovery.
Orange County companies that provide services for people who’ve lost jobs or homes are seeing demand continue to increase, while charitable giving stays sluggish.
“We’ve basically just done a lot more with less,” said Jim Palmer, president of Tustin-based Orange County Rescue Mission.
Heads of local nonprofits don’t see that trend changing any time soon.
“We’re seeing some of the longer-term effects of the loss of income and benefits beginning to entrench in many families,” said Shelley Hoss, president of Newport Beach-based Orange County Community Founda-tion. “This will be an extended period of challenge for the nonprofit sector.”
The Rescue Mission, which runs a housing center that helps transition people from homelessness into jobs and long-term housing, is trying to make up a $320,000 income shortfall by the close of its fiscal year this month.
At the same time, it is seeing demand for its services go up 300% from two years ago, Palmer said.
The Rescue Mission is not alone in dealing with shrinking income.
Jim McAleer, chief executive of Alz-heimer’s Association’s OC chapter, said the big donors that write $50,000 checks have scaled back.
The Alzheimer’s Association in OC serves 66,000 dementia patients. Alzheimer’s disease is the largest type of dementia, an umbrella of symptoms related to a decline in mental abilities.
“This year we kept up, but by the skin of our teeth,” McAleer said.
But he doesn’t see any reprieve for next year as many would-be donors are budgeting differently because of the down economy.
“This is not just a dip in the economy, this is the economy,” McAleer said.
Nonprofits’ Reactions
Nonprofits have come up with a variety of ways to meet growing demand on fewer dollars, including enlisting more volunteers, forming partnerships with businesses and other nonprofits, and asking for smaller donations from more people.
“The nonprofits throughout OC have been extraordinarily savvy,” said the Community Foundation’s Hoss. “The result of that is there have been no losses of any key safety net organizations in OC.”
The Rescue Mission has leaned on its volunteers and has partnered with business and other nonprofits.
“We’ve asked existing staff and volunteers to take on more roles,” Palmer said.
Volunteers are doing tasks that staff would typically do, such as managing parts of the operation, he said. The Rescue Mission recently added another mobile medical clinic in Temecula, which is all volunteer run, except for one staff member.
The Rescue Mission has two mobile medical clinics and the Hurtt Family Health Clinic onsite at the Village of Hope.
It’s looking to add a pediatric mobile clinic in OC to serve 19 schools in three school districts that are in need of a clinic, Palmer said.
The Rescue Mission has collaborations with local universities that allow it to provide some healthcare and legal services for free.
“That’s probably one of the more sophisticated solutions we’ve taken to deal with the shortfall,” he said.
Malibu-based Pepperdine University operates the onsite mental health clinic. University of California, Irvine, provides psychiatric services. Irvine-based Concordia University operates the after-school program at the Village of Hope, and Santa Ana-based Trinity Law School, part of Illinois-based Trinity Inter-national University, helps clients get legal affairs in order.
The Rescue Mission recently teamed with Cox Communications on a text, e-mail and online fundraiser to raise enough money for 100,000 meals for the needy during the holiday season.
“Our need skyrockets during Thanksgiving and Christmas,” Palmer said. “We have a really good feeling about this.”
The Alzheimer’s Association, bracing for a rise in Alzheimer’s as the nation’s population is growing older and living longer, is boosting its number of smaller donors.
Smaller donors typically are younger than big check writers. They also tend to want to be actively involved.
Many participate in a Memory Walk fund-raiser, which started two years ago. The nonprofit now holds four walks a year to appeal to local markets, McAleer said.
Government Funds
In addition to seeking out smaller donors, some nonprofits are turning more to government funding.
Mercy House, an emergency shelter, has ramped up its homeless prevention programs with a boost in federal funding.
Mercy House has been able to keep its funding stable, according to Executive Director Larry Haynes.
The nonprofit has always run lean, with an annual budget of $5 million.
Now Mercy House is getting more public funds.
Prior to the downturn, it derived 70% of its income from individual donors, corporations and foundations. Private donations now make up 40% of its income, Haynes said.
“That’s a pretty significant decline,” he said. “A lot of corporations and business sponsors aren’t in business anymore.”
Major homebuilders used to be big sponsors. No longer, Haynes said.
To generate income, Mercy House is holding more events and enlisting others to put on events on behalf of Mercy House.
“We’ve engaged the community more than before,” he said.
The downside of ramping up fundraising: “I have to spend much more time on fundraising than program development,” Haynes said.
But programs to help stave off homelessness are needed even more than before, he said.
“Our phone rings nonstop from families who have eviction notices,” said Haynes. “It’s nearly impossible to keep up with the demand from that.”
Two years ago, Mercy House started a program that helped 127 families move into temporary housing—usually motels—and then into permanent housing.
This year, the nonprofit has helped 300 families move into permanent housing.
Many people who’ve lost jobs, benefits and homes in the thick of the downturn have reached a point where they’ve exhausted their savings, their stays with family and friends and other resources.
Now they’re looking elsewhere for help.
“Our working class families are really on edge,” Haynes said.
Another concern: Two years running, staffers haven’t seen raises, the nonprofit hasn’t invested in facilities or building upgrades and the margins of revenue over expenses leaves little room for error.
“We’re okay if we’re perfect but that’s a formula for failure at some point,” Haynes said.
