Non-Profits Losing Funding and Employees

The downturn of the economy has already affected the majority of non-profits by decreases in donations. Now, for those non-profits that have an employee base, lay offs are starting to ensue. Despite the need for help in all aspects of philanthropy greater than ever, America's non-profits are having trouble getting funding in the current state of our economy.

Susan G Komen has cut its staff by 16% and the American Lung Association (ALA) has cut theirs by 15%. Focus on the Family (FOTF) eliminated 202 positions, which is almost 18% of its staff. According to the spokesman for FOTF, Gary Schneeberger, in just the month of October, giving was off by 2 million dollars as compared to last year which is what lead them to start making some changes within their budget.

Even though funding is down for these organizations, the need for them has increased. Retha Fielding, the spokeswoman for the National Domestic Violence Hotline, says that in September and October calls were up by 21% and Retha says that its economic stress that is causing the problems at home.

Other non-profits are searching for ways to watch their budget and keep their employees. The Cystic Fibrosis Foundation (CFF) has frozen hiring for now. Although the spokesman for CFF, Richard Mattingly, says CFF is still receiving steady support from the same people that have been supporting them all along, the amount of the gifts has dropped. For instance, a donor that gave $300,000 last year may give $100,000 this year. Mattingly estimates a 50% drop in giving to CFF.

The National Council of Nonprofits (NCN) created the Nonprofit Economic Vitality Center to help nonprofits in these turbulent times. The Nonprofit Economic Vitality Center is an online resource that compiles information on the effects of the economy on nonprofits and how the nonprofits can or should respond. For more information on the center go to: www.councilofnonprofits.org.