Local nonprofits struggle, report rising need for funds

Saturday, 19 December 2009 06:27

To survive the plunge in donations and continue responding to the rising need among Fairfield County, residents, nonprofit organizations, donors and government officials must take immediate steps and work together, according to a report by the Fairfield County Community Foundation’s Center for Nonprofit Excellence that analyzes the challenges facing the county’s residents and nonprofits. The foundation surveyed more than 200 of the county’s 1,340 nonprofits in April and May of this year, including 79 organizations serving New Canaan residents.

For nonprofits serving New Canaan, 84 percent saw fund-raising revenue decrease and 73 percent said they expect revenue to continue dropping the coming year. Another 52 percent reported that they are experiencing an increase in demand for services. Thirty-eight percent responded that they had no operating reserve fund, while another 24 percent had less than $100,000 in reserve.

Moreover, 23 percent had laid off staff, while another 15 percent were considering future layoffs. Twenty-three percent have eliminated or reduced programs and services.

Recommendations based on the survey advise nonprofits, donors and government officials on the steps they can take to survive the recession, improve operations and maximize the impact of charitable and public dollars.

For nonprofits, recommendations include: building reserve funds to cover at least six months of operating costs; sharing services and programs with similar organizations; creating online giving campaigns for rapid response fund-raising needs, and communicating changing needs to donors.

For donors, recommendations include: making gifts for general operating support rather than to specific programs; funding operating reserves and endowments; supporting advocacy initiatives to increase government funding in the county, and covering the cost of shared services and mergers to improve efficiency and reduce costs in the long term.

For government officials, recommendations include: correcting the “Gold Coast” myth and demonstrating that many Fairfield County residents have real needs and face challenges similar to those in other regions; streamlining the government grant process, and building relationships with the nonprofit sector to increase collaboration and public funding of services

The report, as well as the complete data from the survey, is available at fccfoundation.org.

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