Growth of nonprofit sector puts a strain on fundraising

By BENNETT HALL

Corvallis Gazette-Times

Cathy Kennedy was at the end of her rope.

A 32-year-old single mother with three boys, Kennedy works in the admitting department at Good Samaritan Regional Medical Center. She has full benefits, but her health insurance doesn't come close to covering the full costs of treatment for her two older sons, who have significant medical expenses that gobble around half of her take-home pay each month.

First she fell behind on her rent. Then she got an eviction notice. In desperation, she started contacting local nonprofits asking for help.

"I called over 30 places looking for assistance," Kennedy said, but none had money to give.

Finally she connected with We Care, a small Corvallis interdenominational group that provides one-time emergency aid for household expenses. A $352 payment to her landlord got her caught up - for now.

"That doesn't help me with September," Kennedy said last week.

We Care is intended to be a last resort for folks unable to get help from other agencies, but the need keeps growing.

"We generally get five or six (requests) every week," said We Care board Chairman Megha Shyam. "We're able to help about half right now."

The same scenario is playing out all over the mid-valley, where not-for-profit social service agencies are struggling to answer a growing chorus of cries for help.

Part of the problem is the weak economy, which has cut into donations to nonprofits everywhere. But there's a longer-term trend that's making matters worse, say charitable agencies that serve the public: a proliferation of nonprofits competing for contributions.

"The demand for nonprofit dollars keeps increasing, but the supply keeps dwindling," said Kavinda Arthenayake, past president of the United Way of Benton County. "Everybody's clamoring for the same dollars."

It's the same story in neighboring Linn County.

"Over here we've seen an increase in nonprofits," said Greg Roe, executive director of the Linn United Way.

Growth industry

The mid-valley's situation is a microcosm of the rapidly expanding nonprofit universe. Statewide, the list of charitable organizations now numbers 13,718, not counting religious institutions, up a whopping 40 percent since 1998. Nationally the numbers are even more staggering, with an estimated 1.1 million charities operating in the United States.

And every single one of them wants your money.

For folks out soliciting donations for everything from the local Little League team to the Oregon Food Bank to the American Red Cross, that means they have to work harder than ever for every penny they get.

"You're competing with a million other charities now," said Michael Nilsen, a spokesman for the Association of Fundraising Professionals, a national trade group based in Arlington, Va. "And about 80 percent of fundraising goes to the biggest 20 percent of charities, so if you're not one of the biggest 20 percent, it's even more competitive."

Donor dollars can also get siphoned off by "flavor of the month" appeals, said John Korb, past president of the association's Oregon chapter and director of philanthropy for Adventist Medical Center in Portland.

After Hurricane Katrina, for instance, Adventist put out a call for assistance that resulted in a temporary drop in support for its own operations. But there also was an unexpected long-range benefit - the hospital's appeal drew some first-time contributors, many of whom continued to give to Adventist after the Katrina crisis abated.

"We were able to attract new donors," Korb said.

Survival strategies

Growing the donor base is just one way that nonprofits can respond to an increasingly competitive fundraising environment. Korb and Nilsen also offered these recommendations:

• Sharpen your focus - concentrate your resources on your core mission rather than branching into other areas.

• Get lean - donors want to see efficient operations with the lowest possible overhead.

• Play well with others - look for opportunities to partner with like-minded organizations to reduce expenses and maximize results.

• Spread the word - use aggressive marketing techniques to tell potential donors about your organization and why they should support it.

"The not-for-profit sector in many ways is just as entrepreneurial as the for-profit sector," Korb said.

In today's overcrowded nonprofit world, the most successful charities are likely to be the ones that do the best job of competing for donors' attention - and their checkbooks. It's apt to be a bruising fight that some may not survive. But in the long run, said Nilsen, that's not necessarily bad.

"Maybe this competition ultimately is a good thing," he said. "Maybe it will whittle down the number of nonprofits."

Numbers game

Finding ways to shrink the number of philanthropic organizations jockeying for contributions has been a major topic of discussion in nonprofit boardrooms for several years, Nilsen said, but so far there's been little in the way of mergers or consolidations.

In Benton County, where donor fatigue seems to have reached epidemic proportions, the United Way is hoping to move that discussion forward. The organization is teaming with Leadership Corvallis on a project to compile a list of all nonprofits operating in the county and group them into categories based their missions.

With that information in hand, United Way officials hope to encourage similar groups to merge with a view to cutting down the charitable clutter. In effect, they'll be suggesting that some organizations should shut down, or at least take a lesser role, for the greater good. Obviously, that will be a tough sell.

"Nonprofits are driven by people's passions," said Biff Traber, incoming president of the United Way of Benton County. "That's part of the dilemma here. You can't dictate to people."

Consolidation, Traber said, is "the dead moose on the table. It's the big smelly thing you don't want to deal with." But he argues it may be the only way to thin the nonprofit herd to a manageable size, both for fundraisers and for donors.

"I'm not sure what the magic number is," said his predecessor, Arthenayake. "But, at the same time, how many charitable auctions can you go to? How many golf tournaments can you attend? How many pizza nights can you have?"

Roe, the Linn County United Way director, rejects the idea that some nonprofits should be asked to step aside so the rest can thrive.

"We just focus on our work and why people should give to us," he said. "I'm one who thinks you need to give where your heart is at."

Hard decisions

As calculating as voluntary consolidation may sound to some, it may be less cold-blooded than the likely alternative: a Darwinian selection process driven by the philanthropic free market. The fittest charities will survive while others go under.

So where does that leave the people in need, the folks all these charities were designed to help?

For people such as Cathy Kennedy, who's still struggling to keep her own head above water, the argument is more than academic.

Like many struggling nonprofits, Kennedy is doing whatever she can to make ends meet. She's applied for Social Security disability benefits for her medically challenged sons, but she's still waiting for the first check to arrive.

In the meanwhile, she's tightening her budget wherever she can. Her latest cost-cutting strategy involves moving out of her modest house and into an apartment to save on rent - even though that means giving up the family dog, Buddy.

"I had to make a choice," she said. "I either pay my rent this month, or we move."

Who Gets What

Shows donations by type of nonprofit organization in Linn County

Donations Revenue

Human services-other, multi- $2,277,033 $26,608,268

Health, general, rehabilitative $1,571,067 $2,078,800

Animal-related activities $1,411,941 $1,578,106

Education $1,251,846 $10,441,587

Philanthropy & volunteerism $1,232,710 $1,284,061

Environmental quality, protection $744,290 $1,201,247

Arts, culture, humanities $388,957 $730,339

Youth development $303,803 $1,050,377

Housing, shelter $300,519 $991,327

Religion, spiritual development $275,266 $405,302

Employment, jobs $196,392 $2,838,589

Recreation, leisure, sports, athletics $125,153 $1,292,510

Mental health, crisis intervention $91,951 $137,401

Community improvement, development $87,776 $767,069

Food, nutrition, agriculture $67,897 $242,324

Public protection: crime, courts, legal services $34,545 $96,323

Unknown, Unclassifiable $31,352 $663,660

Disease, disorders, medical disciplines $13,521 $23,613

Public safety, disaster preparedness & relief $10,906 $83,804

International $0 $18,086

Public affairs, society benefit $0 $17,655

TOTAL FOR THE PERIOD: $10,416,925 $52,550,449

Top Organizational Recipients - 2005

Donations Revenue

1 Mid-Willamette Family Y.M.C.A., Inc. $1,511,062 $2,278,144

2 Safehaven Humane Society $1,411,941 $1,547,374

3 Lebanon Community Hospital Foundation $1,064,513 $1,194,696

4 Linn-Benton Community College Foundation, Inc. $924,096 $1,317,464

5 Opal Creek Ancient Forest Center $743,114 $858,302

6 United Way of Linn County $726,382 $765,389

7 Lebanon Community Foundation $506,328 $504,148

8 Albany General Hospital Foundation $283,922 $466,330

9 Pregnancy Alternatives Center $204,951 $205,038

10 Boys and Girls Club of Lebanon $175,994 $673,592

11 Habitat for Humanity, Albany Area $139,794 $587,934

12 Albany Mennonite Home/Village Foundation, Inc. $133,270 $180,015

13 Albany Crisis Pregnancy Center $127,022 $131,227

14 Scio Historical Society, Inc. $126,587 $131,189

15 Willamette Valley Rehabilitation Center, Inc. $110,462 $1,833,190

16 Sweet Home Alumni Foundation $104,491 $128,657

17 Heavenly Angels in Need $92,941 $92,949

18 Canyon Crisis and Resource Center $88,188 $88,325

19 Albany Boys & Girls Club Foundation, Inc. $86,370 $133,622

20 Show Mercy Ministries $82,908 $82,908

21 Harrisburg Area Museum Trust, Inc. $79,230 $103,571

22 Lebanon Area Habitat for Humanity $79,012 $17,368

23 Lebanon Schools Foundation $77,800 $92,180

24 Mennonite Home of Albany, Inc. $74,725 $18,663,389

25 Makindu Children's Program $72,868 $90,090

26 Upward Bound Camp for Persons with Special Needs, Inc. $66,895 $244,089

27 Rebel Athletic Foundation, Inc. $62,083 $82,588

28 Albany Public Schools Foundation $61,077 $92,189

29 North Santiam Canyon Economic Development Corporation $57,562 $58,292

30 Community After School Program $53,736 $377,968

31 Albany Partnership for Housing and Community Development $53,100 $567,704

32 Historic Carousel and Museum $52,643 $52,643

33 Ancient Ways $49,647 $62,383

34 Lighthouse Farm Sanctuary $47,539 $50,851

35 God's Storehouse $37,198 $37,888

36 KWIL For Christ, Inc. $36,771 $72,771

37 Senior Citizens of Sweet Home, Inc. $36,630 $321,934

38 Family Tree Relief Nursery $35,619 $35,619

39 Linn County Child Victim Assessment Center, Inc. $35,274 $358,559

40 Sharing Hands $35,229 $69,946

41 Linn County CASA, Inc. $34,545 $75,508

42 Educare Africa $34,516 $34,516

43 Sweet Home Habitat for Humanity $34,174 $42,900

44 Albany Regional Museum Corporation $33,184 $104,553

45 Starfish Ministries Unlimited $33,047 $33,047

46 West Albany Sports Foundation $32,551 $33,929

47 Albany Civic Theatre, Inc. $30,994 $109,966

48 Volunteer Caregivers, Inc. $28,715 $34,940

49 New Life Ministries of Salem $26,635 $26,635

50 Kitty Angel Team Adoption $25,872 $26,567

51 Linn County 4-H Leaders Association $25,442 $43,760

52 Sweet Home Community Foundation $24,687 $25,324

53 Camp Attitude, Oregon, Inc. $22,357 $22,357

54 Sweet Home's H.O.P.E. $21,216 $20,216

55 Groves Parent Teacher Club $18,414 $18,414

56 Brownsville Senior Center $17,884 $22,091

57 Oregon Dairy Women, Inc. $16,083 $585,932

58 Linn-Benton Mediation Services $14,391 $103,567

59 Northwest Rett Syndrome Foundation, Inc. $13,521 $23,613

60 Canyon Gleaners $11,018 $68,149

61 Mill City Volunteer Fire Department $10,906 $26,168

62 Scio Youth Club $10,660 $108,610

63 Oregon Workforce Alliance $10,000 $10,000

64 Harrisburg Booster Club $9,989 $19,076

65 Lourdes Education Foundation, The $9,570 $13,449

66 Little Promises Children's Program $8,820 $351,482

67 Sweet Home Gleaners, Inc., The $7,761 $75,979

68 Harris Private School $7,561 $95,816

69 Fish of Lebanon $7,505 $16,678

70 North Santiam Community Foundation $7,420 $14,030

71 Catholic Engaged Encounter of Oregon, Inc. $6,909 $79,482

72 Canyon Senior Center $6,244 $14,814

73 Linn County Historical Museum Trust, Inc. $5,569 $8,861

74 Sweet Home Genealogical Society $5,514 $9,602

75 Center Enterprises, Inc. $5,480 $598,237

76 Sweet Home Boys and Girls Club $5,337 $76,320

77 Lebanon Public Library-Senior Center Trust $5,288 $5,288

78 Central Linn Education Foundation $4,422 $15,020

79 Linn County Lamb and Wool Fair Association $4,415 $21,707

80 Lourdes School, The $4,398 $216,440

81 Linn County Extension Association $4,290 $23,314

82 East Linn Museum Society $4,203 $9,601

83 ARC of Linn County, The $3,763 $40,108

84 Willamette Manor, Inc. $2,732 $1,096,333

85 Mid-Willamette Family YMCA Foundation $2,368 $41,145

86 Sunshine Industries Unlimited, Inc. $2,285 $351,130

87 Linn County Historical Society, Inc. $1,386 $6,333

88 People Involved in Education, Inc. $1,211 $1,080,500

89 South Santiam Watershed Council, The $1,176 $110,227

90 Et Cetera Shop $781 $93,681

91 Linn-Benton Pop Warner Football $495 $105,282

92 Association for Motorcyclists of Oregon $247 $4,812

93 Blackberry Ridge Service Dogs $0 $2,700

94 Center for Brain Injury Caused Behavior Disorders $0 $0

95 Linn County Amateur Radio Emergency Service Association $0 $106

96 Marion County A.R.E.S., Inc. $0 $100

97 Northwest Search Dogs, Inc. $0 $1,129

98 Scio Memorial Clinic, Inc. $0 $3,483

99 Albany Historic Carousel $0 $0

100 Boston Mill Society $0 $12,347

101 Dance and Drill Coaches Association of Oregon $0 $0

102 Flinn's Living History Institute, Inc. $0 $28,813

103 Friends of the Brownsville Community Library, Inc. $0 $1,029

104 Friends of the Scio Public Library $0 $2,062

105 Friendship Force of Oregon's Mid-Willamette Valley, The $0 $8,072

106 Lebanon Community Chorus Association, Inc. $0 $1,265

107 Lebanon Founders Day $0 $0

108 Lebanon Genealogical Society $0 $1,002

109 Lebanon Museum $0 $127

110 Lebanon-Sweet Home Concert Association, Inc. $0 $1

111 Linn County Museum Friends $0 $17,480

112 Linn County Pioneer Memorial Association, Inc. $0 $16,518

113 Monteith Historical Society $0 $8,831

114 Operation Fire Engine #51 $0 $404

115 Oregon Chapter, U.S. Lighthouse Society $0 $6,070

116 Santiam Civic Theatre $0 $0

117 Sweet Home Community Singing Christmas Tree $0 $3,367

118 Veterans Commemoration Association $0 $24,250

119 Wilderness Village Foundation $0 $0

120 Albany Area Seniors, Inc. $0 $15,892

121 Caring Team Ministry $0 $10,934

122 Central Valley Harvesters $0 $209

123 Chamberlin House, Inc. $0 $1,869,527

124 Christmas Storybook Land, Inc. $0 $12,974

125 Consumer Credit Counseling Service, Linn-Benton, Inc. $0 $122,836

126 Friends of the Retired Senior Volunteer Program of Linn $0 $7,516

127 Helping Hands Gleaners $0 $5,328

128 Lebanon Basic Services Center $0 $36

129 Lebanon Gleaners, Inc. $0 $10,273

130 Life Source $0 $3,660

131 Mid-Valley Gleaners $0 $11,013

132 Mid-Valley Singles, Inc. $0 $2,790

133 On Our Own Visions Team $0 $37,054

134 Rainbow Childrens Center, Inc. $0 $118,994

135 S.C.I.O. Cares $0 $6,229

136 Santiam Canyon Youth and Families Alliance $0 $13,700

137 Scotty Graham Memorial Fund $0 $1,481

138 World Deaf Timberfest, Inc. $0 $24,638

139 Cascades Elementary PTA $0 $0

140 Cascadia Community TV, Inc $0 $80

141 Chuck Smith Scholarship Fund $0 $0

142 Fastworks of Lincoln Middle School $0 $1,200

143 First Christian Church Preprimary School $0 $98,420

144 Graduation Celebration $0 $13,200

145 Green Acres Parent-Teacher Club $0 $16,828

146 Harrisburg Dollars for Scholars Foundation $0 $14,589

147 Kids and Company of Linn County $0 $3,547,318

148 League of Oregon Charter Schools $0 $0

149 Linn County Foster Parents Association, Inc. $0 $300

150 Mid Valley Learning Center $0 $58,143

151 Mill City Library $0 $2,928

152 Morrison Campus Alternative Charter School $0 $644,307

153 Munchkin Meadows Childcare & Preschool $0 $0

154 Oregon Connections Academy $0 $2,836,770

155 Oregon Elite Parent Club $0 $8,275

156 Oregon School Resource Officers Association $0 $18,255

157 Pioneer School PTC $0 $10,854

158 Reed School Association $0 $10

159 Rock Hill School Foundation $0 $5,070

160 Save our Schools and Playgrounds $0 $3,168

161 Senior Alcohol-Free Entertainment, Inc. $0 $26,165

162 Waverly PTA $0 $7,747

163 Altrusa Club of Lebanon, Oregon Foundation $0 $14,524

164 Albany Timber Carnival Association $0 $0

165 Brownsville Community Foundation $0 $0

166 Brownsville Neighborhood Watch $0 $200

167 Friends of Linn County $0 $2,190

168 Lebanon Booster Club $0 $22,856

169 Lebanon Strawberry Festival Association, Inc. $0 $83,838

170 Lebanon USBC Association $0 $21,950

171 Linn Christmas Greeters $0 $9,293

172 Linn County Endowment Fund $0 $727

173 Mill City Fourth of July Committee $0 $1,743

174 President's Club, The $0 $9,564

175 Scio Community Improvement Organization $0 $0

176 Sodaville Neighbors Improving our Community $0 $2,604

177 Legacy Land Conservancy $0 $5,640

178 Small Utilities Service Corp. $0 $226,703

179 Third Force for Forestry $0 $375

180 Friends of the Sweet Home Library $0 $14,028

181 St. Mary's Senior Residential Housing $0 $0

182 Wapiti Bowmen, Inc. $0 $24,829

183 Catherine Freer Foundation, The $0 $0

184 Foster Scouter Club $0 $1,695

185 Friends of Troop 377 $0 $235

186 Lebanon Mat Club $0 $12,543

187 CAT Champion Corp. $0 $3,596

188 Oregon Raptor Center, Inc. $0 $5,802

189 Spay $0 $21,334

190 Linn County Committee for the Prevention of Child Abuse, Inc. $0 $5,202

191 Mental Health Association of Linn County $0 $3,766

192 Lebanon Emergency Shelter $0 $15,736

193 Linn County Affordable Housing, Inc. $0 $0

194 Oregon Rural Housing Services $0 $85,079

195 Parkside Court Apartments $0 $191,459

196 Albany Little League $0 $49,447

197 Albany Woman's Club, Inc. $0 $110

198 Brownsville Recreation Center, Inc. $0 $24,282

199 Corvallis Ski Swap, Inc. $0 $16,219

200 Crabtree Community Club $0 $3,124

201 Eugene Ski Swap, Inc. $0 $0

202 Flutering Wings Bird Club, Inc. $0 $0

203 Harrisburg Sports Program, Inc. $0 $16,137

204 Mid-Valley Soccer Club, Inc. $0 $7,500

205 Mid-Valley Swim Team $0 $40,236

206 Mill City Recreation Association, Inc. $0 $11,935

207 Mill City/Gates Community Assistance Center $0 $7,034

208 Oregon Horsemen's Association $0 $12,191

209 Oregon Junior Bull Riders Association $0 $14,350

210 Recreation for Kids and Community $0 $10,698

211 Riverview Community Clubs $0 $1,906

212 Scio Buckaroos, Inc. $0 $6,557

213 Snow Peak Youth Camp, Inc. $0 $798,458

214 Tombey Mat Club $0 $7,980

215 West Cascade Back Country Horsemen of Oregon $0 $1,347

216 Linn County Sheriff's Mounted Posse, The $0 $4,216

217 Oregon Network of Child Abuse Intervention Centers $0 $16,599

218 Fair Share Gleaners $0 $13,091

219 North Santiam Gleaners $0 $7,551

220 Oregon Purebreed Sheep Breeders Association $0 $1,281

221 Albany Fire Fighters Community Assistance Fund $0 $16,304

222 Harrisburg Volunteer Firefighters Association $0 $13,613

223 K-9 Homefinders and Rescue, Inc. $0 $17,921

224 Lebanon Fire District Auxiliary $0 $1,438

225 Tangent Rural Volunteer Fire Department $0 $8,360

226 Circle of Well Being $0 $0

227 Linn County Victim Impact Panel, Inc. $0 $17,655

228 Reaching Out Ministries $0 $18,086

229 Work Experience Coordinators of Oregon $0 $45

230 Exodus II (Foundation for the Enrichment of Human $0 $4,284

231 Willamette Crisis Pregnancy Center $0 $17,093

TOTAL FOR THE PERIOD, these organizations: $10,416,925 $52,550,44