Orange County Funders Roundtable: Orange County Non-Profit Foundations Facing Declining Revenues With Increased Demand For Services In 2009

 

"We believe that, by working together, the nonprofits of Orange County can strengthen the capacity of our sector and the philanthropic engagement of our community."

"We believe that, by working together, the nonprofits of Orange County can strengthen the capacity of our sector and the philanthropic engagement of our community."

“Reduced donations, increased demand for services and the impact of the state budget crisis on the safety-net providers are putting incredible pressure on our local nonprofits.”

 

 The Orange County Funders Roundtable, a coalition of local foundations, today released the results of a countywide study on how local nonprofits have been affected by the growing economic crisis. With 58% of respondents facing declining revenues in 2009, and over 66% seeing a greater demand for services, the results show that nonprofits have been hit hard by the economic crisis.

“It’s a perfect storm,” said Michael Ruane, Executive Director of the Children and Families Commission of Orange County. “Reduced donations, increased demand for services and the impact of the state budget crisis on the safety-net providers are putting incredible pressure on our local nonprofits.”

The survey highlights these conditions, showing that 46% of nonprofits surveyed have lost granted funds and contracts that were anticipated, and 43% have major donors that were unable to provide continued funding. An additional 33% have already tapped their reserves, and another 13% are using lines of credit to sustain operations.

A growing demand for social services — such as food, shelter and medical care — by newly impacted Orange County residents is also contributing to the strain on local nonprofit organizations. Residents finding themselves newly in need are seeking first-time assistance from a wide range of services and programs. Former two-income families are turning to food banks for groceries to feed their children. And during times of economic hardship, the instance of child abuse and neglect dramatically increases.

“It is critical that the public be aware of the dramatic new needs and challenges that the economic crisis brings to Orange County. The local nonprofit sector plays a vital role in supporting quality of life in our communities,” said Shelley Hoss, President of the Orange County Community Foundation. “But the local nonprofit safety net needs reinforcement. There is an opportunity here for neighbors to help neighbors, for each of us to help, by giving our financial resources and our time.”

The report also highlights the strategies nonprofits executives are using to face these challenges and continue supporting their communities. One survey respondent expressed the fighting spirit of the sector when they said that the economic crisis “…has caused us to reinvent the way in which we meet the needs of our clients, become extremely efficient and to work harder.”

For a complete report on the survey responses visit

 

www.ocfunders.org

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