September 09, 2009
Social-Service Charities Face Severe Financial Pressures, N.Y. Study Reveals
By Caroline Preston
Social-service charities are severely strained — and the worst may be yet to come.
Those were the most common refrains from leaders of the 244 New York City social-services charities polled in June.
Seventy-three percent of the charity leaders reported drops in private donations, 62 percent have seen dips in government support, and 75 percent have no endowment nor line of credit to get them through the tough times.
The survey — part of a study by Baruch College’s School of Public Affairs and the Human Services Council, both in New York — found that layoffs have become widespread.
Fifty-three percent had laid off employees in the past year, according to the study. Sixteen percent shed more than 15 percent of their work force.
‘Very Difficult to Plan’
A smaller, but still significant number, of charities have cut programs. Thirty-five percent of nonprofit executives in the survey said they had eliminated entire programs over the past 12 months.
But even groups that have taken such dramatic steps are still trying to maintain services. Seventy-four percent of charity leaders polled said they had not significantly cut back on the assistance they offer people.
Many charity leaders expressed frustration and concern over their inability to plan for the future or reassure staff members their jobs were safe.
“The most difficult part is the uncertainty and last-minute decision making of all funders — foundations, government, and individuals,” said one survey respondent. “It is very difficult to plan without a clear sense of direction.”
Nonprofit leaders, even those of groups that have held up relatively well in the recession, expected the next 12 months to be even more difficult.
“The impact of the current crisis is anticipated to hit us in a more profound way in the next fiscal year,” said one person.
The report will be available on the Human Services Council’s Web site.
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