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Local News

Economy takes toll on non-profits

By Cindy Votruba
POSTED: October 25, 2008

MARSHALL - With winter coming and the nation's economy at a low point, Western Community Action Executive Director John Fitzgerald said his organization has a full plate.

"Our mission is to help people get out of poverty," Fitzgerald said. "We're busier than ever, especially with the energy assistance program, and just trying to help people with basic needs."

But in today's economy, Fitzgerald is wondering who will be able to help fund the ability to clean that plate as the agency provides services.

"We've got more in need and less money to do it," Fitzgerald said.

Other representatives of local non-profits are facing similar challenges, and said they are being cautious and resourceful during the downturn in the nation's economy, so they can continue to provide their services.

"It's how to have the most impact with fewer dollars, that's the challenge," said Greta Murray, executive director of the Southwest Minnesota Arts and Humanities Council.

Ruth Ascher, executive director of the United Way of Southwest Minnesota, said she's heard from other United Way organizations these are some really hard times.

"It's a real mixed kind of thing," Ascher said. "There are people who are worrying about their future."

But, Ascher said, it's hard to paint every part of the United States with the same brush.

"We haven't necessarily noticed anything yet," said Denise Brewers, executive director of Prairie Home Hospice. "We'll know more in the next few months."

Brewers said Hospice will have its two major fund-raisers, the Tree of Light and the Charity Ball, in those next few months.

Local non-profits depend on state funding as well as local donations. Murray said 74 percent of SMAHC's funding comes from the state and the McKnight Foundation.

"So next year is pretty scary," Murray said.

The United Way of Southwest Minnesota is in the middle of a $600,000 fund-raising campaign.

"The money we are able to give out in grants is driven by how much we raise in the campaign," Ascher said. "We've got a big goal, and it's going to depend upon how people can respond."

Brewers said 25 percent of Hospice's annual budget depends on donations.

"But we haven't noticed a change yet," Brewers said.

Some local charity drives have already noticed a change.

Fitzgerald said the recent local Coats for Kids drive saw a dip in donations.

"The actual number of coats are down this year," Fitzgerald said.

Murray has also seen a decrease in interest income earned from accounts for SMAHC.

"Our interest income obviously keeps dropping," Murray said.

History has shown that a change in the economy can affect funding for non-profits. Five years ago, SMAHC took a 32-percent cut in its state funding. Murray said state funding is worse now than it was in 2003.

"That gets scary when it starts," Murray said. "But people are still donating."

When the economy was doing poorly five years ago, SMAHC had fewer members, Murray said, but those who were members gave more.

"So people dug deep who were really committed," Murray said. "Our overall membership dollars didn't go down. People do dig deep for things they care about. It's a wonderful thing."

Despite the tough economy, people are more generous in this area, non-profits said.

"They are very giving," Brewers said. "If people know times are hard, they want to help that much more if they're able."

Personally, Ascher said she intends to support the United Way, her church and other organizations, giving wherever she can.

"I have a passion for the arts, and I need to continue supporting that," Ascher said.

Ascher encourages others to do the same.

"A gift, no matter how big or small, it magnifies in its greater amount," Ascher said.

If people aren't able to afford a donation, they can give of their time through volunteering, Ascher said.

"It makes a difference and it doesn't cost a lot," Ascher said.

Local non-profits said they are being proactive during these troubling times.

Ascher said United Way has increased its annual grant to help the local food shelf to be able to provide its services.

Fitzgerald said WCA has applied for more funds from local foundations to "fill in the gaps" for people in need.

"We're expecting there's going to be unforeseen things," Fitzgerald said. "The economy is making us adjust how we're doing these (programs)."

Murray said SMAHC is working hard on broadening its income base.

"We don't know if it's (the economy) going to go up or down," Murray said.

Brewers said it's just "wait and see. Time will tell how the economy will affect us."

 
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Member Comments
View Comments: | 1-2 | Post a comment
Carmella
10-27-08 7:03 PM
Geez, Axlrose...have a heart

AXLROSE
10-25-08 9:30 PM
If you are a non-profit shouldn't you expect to lose. Way back when, Slash lost his top hat in Baltimore. He did not complain and eventually car jacked the people who stole his hat. We wrote "Don't Cry" as a remembrance of this situation.

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