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Tightening purse strings: Nonprofits say funding is down, service needs are up
With individual donations down and governments cutting back on grants, Loudoun's nonprofit organizations are finding themselves forced to water down the soup, figuratively speaking.
Though some are in better shape than others, all say if funding remains as it is, their financial future is unclear.
Less funds, more service needs
“We’re struggling,” said Bonnie Inman, executive director of Loudoun Interfaith Relief in Leesburg. While monetary and food contributions are down, she said, the pantry is serving about 14 percent more people, a result of local foreclosures and layoffs.
Similarly, Good Shepherd Alliance, which provides services for the homeless, is seeing an increase in the need for its assistance, but not an increase in funding. People are still giving, just not as much, said Finance Director Vickie Koth. The shelter's also received less funding than expected from Loudoun County earlier this year, she said. GSA asked the county for $100,000 this year and received $70,000. A third of this funding was cut because the county said GSA had reduced its services, such as drop-in centers and services to single homeless men.
“It's much less than we asked for and less then they gave us last year,” Koth said. “People who needed help with four things in their life are now dealing with six [because of the economy]. Our expenses have definitely increased.”
As unemployment grows because of layoffs, so does the need for free health-care services. The Loudoun Community Free Clinic in Leesburg serves those ages 18 to 64, most of whom are the working poor, without health insurance, said the clinic's executive director, Jennifer Montgomery. To cut back on costs last year, the clinic postponed hiring additional staff. However, two unexpected and large donations from the private sector saved the clinic from having to take other additional cost-saving measures, Montgomery said. Still, the clinic could use some more help, she added.
“We could use more space,” she said. “If we had more money, I would probably hire another nurse practitioner.”
Arts hit the hardest
Although social services are having a rough time, the nonprofits that support the arts have been hit, arguably, the hardest by the donation drop-off.
Unlike social service organizations, arts organizations do not have the appeal (specifically to government funders) of being categorized as “essential services,” said Peter Dunning, president and artistic director of Bluemont concert series.
Bluemont, a music entertainment and education organization based in Purcellville, has seen its budget cut by nearly 20 percent in the last two years. Hoping to keep its services unaffected by budget reductions, the concert series has scaled back the number of summer concerts, reduced staff from eight to three employees and relied more on volunteer support – all in an effort to cut costs and survive the bad times.
“We're having to swim twice as fast to get to the same place,” Dunning said. “You know the expression 'a rising tide floats all boats?' [The economy] has done the opposite for all of us.”
Likewise, the Loudoun Symphony Orchestra – based in Leesburg -- has seen about a $40,000 decrease in donations for its $160,000 budget.
“Some of our very large supporters are unable to fund us this year,” said Michael Rohrer, executive director of the Loudoun Symphony Association, which runs the adult and youth orchestras.
The Loudoun Museum has also seen its large contributors – the Town of Leesburg and Loudoun County -- contribute less, said Elizabeth Whiting, president of the museum's board of trustees.
The museum asked the county for $300,000 (over a two-year period) to pay for its expenses. It received about $76,000 less than that, said Whiting.
Spend money to make money
The majority of organizations interviewed said they plan to host big fundraising events to raise the money needed to counter budget deficits.
“We're going to have to do well at our [annual] gala, especially with the reduction of our county grant,” Whiting said. “That caught us a bit off guard.”
Golf tournaments, galas and concerts were listed as big money getters.
The organizations also say tapping new donors and broadening the range of those they solicit is at the top of their to-do list.
Creating a new strategy for fundraising is a must, they said. Whether it will be successful is a worry.
“Who knows what's going to happen,” said Rohrer. “I think what we're seeing is the tip of the iceberg. What we saw in the last six months will affect the next six.”
NOTE: More than 20 nonprofits were interviewed to establish trends and see how they are handling decreases in funding.
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