Posted: Sunday, September 14, 2008 12:00 am
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