Local Nonprofits in Downturn

As reported by the Sacramento Bee, the impact on local nonprofits from the economic doldrums—especially those dependent largely on government—has been substantial.

An excerpt.

“The rough economy has left charities that provide help needing more help themselves.

“Several dozen Sacramento nonprofits absorbed revenue losses of more than $1 million last year, according to a Bee analysis of charity tax forms.

“The revenue declines not only have led to lost services for area residents but have resulted in lost clout for professional associations based in Sacramento and lost jobs as they have had to cut their own staffs.

"I think the woes we have are pretty common," said Michael Minnick, executive director of the youth services charity Sacramento ENRICHES, which will shut down after almost 15 years at the end of the month. "There's less and less money out there."

“Sacramento's nonprofit industry is large and diverse. It employs about 50,000 local residents and collects billions in revenue annually. It depends heavily on government grants, membership fees and donations. But governments have been cutting back, layoffs are reducing membership rolls and donors are struggling with their own financial problems.

“Of the 400 largest area nonprofits by annual revenue, about 340 have filed tax returns showing how much money they collected in 2009. Those 340 nonprofits saw gross revenues drop by roughly $150 million last year, or about 6 percent, according to a Bee examination of the returns.

“To put that figure in perspective, $150 million is about what the city of Sacramento spends each year on its Police Department.

“Several nonprofit officials said 2010 is shaping up worse.”