Government Funding & Foundations

The tendency to quit raising money through philanthropy, once your nonprofit, or the local mission it represents, starts getting government money, is wide-spread.

A story from New Jersey, as reported by the Randolph Reporter, concerns one such situation.

A foundation, that allowed itself to become dormant, is now ramping up to stave off the severe reduction in government funding.

It is a strategy that should also be replicated elsewhere—including Sacramento—where many nonprofits once founded to serve as fund raising foundations took over other tasks while government funding was plentiful but now that it isn’t, are not prepared to make up the shortage.

Of course, the obvious question is why do foundations established to provide supplemental funding shut down in times of plenty when experience has taught us that times of funding famine always come around.

An excerpt.

“RANDOLPH TWP. -- A local non-profit group has undergone a rebirth of sorts in what organizers hope will help alleviate the sting of Trenton's plan to cut state aid to local schools.

“The Randolph Education Foundation will hold a wine and cheese reception at 7:30 p.m. tomorrow, Friday, Feb. 19, at the Shongum Clubhouse on Shongum Road. Future events, including a 5K run, are also planned, according to a Foundation statement.

“Chair Margaret Clark said the group has three primary goals: To develop alternative funding sources to support “high quality education” in the district; provide funding for “innovative programs that prepare Randolph students for the world of tomorrow; and to celebrate “the many successes experienced by Randolph students and teachers each year.”

“Our state’s existing system for funding public education makes it difficult to provide some desired services and programs," Clarke said. “We need to help our graduates be competitive in today’s world. Faced with decreasing revenues, public school districts not developing new sources of funding will find it increasingly difficult to offer educational excellence and innovative programming.”

“The group is actually the re-birth of an older organization that was formed some time ago but then went dormant, said Board of Education member Jeanne Stifelman.”