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Nonprofits in need indeed

Posted on November 19, 2008 by Staff

Jon Wilner

OK, I want to be bailed out. Well, not exactly me, but the organization for which I work – The ArtsCenter. Also, the Interfaith Council, El Centro Latino, the Rape Crisis Center, Kidzu, IPAS, Club Nova, the Arc of Orange County, Communities in Schools of Orange County, Extraordinary Ventures and every other nonprofit in our community and throughout the country.

Nonprofits employ hundreds of thousands of people, generate billions of dollars for local economies and provide necessary services in communities that would not otherwise be provided. Imagine our community without any of the nonprofits mentioned above (not to mention the scores that I have not mentioned). Most of these are “small businesses.” Yet, when I listen to what is being proposed to help small businesses make it through this economic crisis, all that I hear are plans for tax breaks or tax credits. Nonprofits do not pay taxes. How is the government, which is at least partially responsible for this mess, going to help the nonprofits survive? Nonprofits are among the most vulnerable “small” businesses in the country. We depend on donations from the disposable income of individuals, foundations and corporations as well as local government support. So not only are we not even on the radar of the financial geniuses in Washington, we are also beginning to feel the effects of there being little disposable income and tight municipal, county and state coffers.

To further complicate our dilemma, there is a war on appropriations. Not all appropriations are for bridges to nowhere. Appropriations help communities improve their infrastructures and support their diverse community needs. This is not “pork.” But since “pork” has become the sound bite for saving our economy, valuable appropriations will, no doubt, take a hit.

On average, nonprofits earn approximately 72 percent of their revenue, the rest being provided through fundraising. It is possible that in order to survive, some nonprofits may need to earn as much as 90 percent of their revenue. Or they can cut services and/or payroll, eliminate health insurance for already underpaid employees or compromise the quality of their services. This is unacceptable to me and it should be to all of you as well. Please help by contacting your local, state and federal government officials and make them realize the damage that could be done to your community if nonprofits are not “bailed out” too.

Jon Wilner is executive director of The ArtsCenter.

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