Government & Nonprofits

Another cautionary tale about nonprofits relying too much on government funding, which seems to be permanent, until it isn’t, from the Miami Herald Tribune.

The most stable form of funding is still individual donations, though it is difficult to format a regular system for generating and sustaining them, the effort is well worth it.

An excerpt.

“SARASOTA - During one of the state's worst job markets on record, Alexa Fernandez, 22, walked from social work classes at the University of South Florida into a full-time counseling position in December.

“As a case worker for Jewish Family and Children's Service of Sarasota-Manatee, she helped clear a waiting list of hundreds of people seeking financial help.

“Federal stimulus dollars and private funds have allowed some nonprofit groups providing social services to hire and expand. JFCS, the Salvation Army and Catholic Charities have become conduits of economic relief in this recession.

“But there are concerns that much of the additional cash will soon run out, even as demand for social services remains high.

"I know I'm pretty lucky I found a job before I even graduated," said Fernandez, whose job is funded through a federal stimulus grant. "I'm worried though because I don't know what's going to happen. This money is ending soon."

“The budget at JFCS expanded to $3.8 million this year, up $1.2 million from five years ago. One program targeted at homelessness prevention more than doubled in funding to $800,000. The agency has added about 15 positions in the last two years.

“That growth partly reflects a shift in charitable giving during the recession, toward basic needs such as food and shelter.

“The growth may seem counterintuitive, but experts say it is not unprecedented.

"It's something we've seen in past recessions as well," said David Biemesderfer with the Florida Philanthropic Network. "Those leading social service agencies may see a temporary swell in donations in down times because there is greater need for their services."

"But much of the money is coming from government programs that have a limited life-span.

“So even as unemployment remains high, social service agencies that are ramping up and getting a handle on the community's economic problems may soon be cutting back.

“The long-term challenge is for the groups to adapt as the economy improves and the demand for help shifts.

“Sleepless nights

“Federal stimulus money may not last beyond this year. State leaders are proposing big social service cuts, including completely eliminating the state Office on Homelessness.

“And while big foundations, corporations and individual donors have funneled a greater percentage of their charitable donations to social service groups, it is unclear how long that will last.

“At Jewish and Family Children's Service, CEO Rose Chapman is asking donors to make long-term pledges to replace some of the stimulus funding.

"It's a challenge because it's a lot of money," Chapman said. "I have sleepless nights."