Money down, need up

• By EMILY KERN HEBERT
• Advocate staff writer
• Published: Jul 5, 2009 - Page: 1D

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With funding down, local nonprofits face having to do more with less this year.

The Louisiana Association of Nonprofit Organizations surveyed more than 300 nonprofits in Louisiana to determine the extent of fundraising difficulties among Louisiana agencies.

Those agencies reported an average 11.5 percent decrease in funding in 2009 compared to their 2008 operating budgets, said Kellie Chavez Greene, LANO’s development director.

Despite having less money, the overwhelming majority of agencies surveyed predicted they would face an increased need for services in 2010, Greene said.

LANO’s full report of survey findings is available online. The agency plans to present its findings at community events across the state, but Greene discussed some of them in a recent interview.

In a different survey by the Nonprofit Finance Fund, survey findings from 950 nonprofits across the country paint a bleak picture at nonprofits nationwide dealing with a sluggish economy.

Key findings include:

• 12 percent expect to operate above break-even this year.
• 16 percent anticipate being able to cover their operating expenses in both 2009 and 2010.
• 31 percent don’t have enough operating cash in hand to cover more than one month of expenses, and another 31 percent have less than three months’ worth.
• 52 percent of respondents expect the recession to have a long-term (two or more years) or permanent negative financial effect on their organizations.
• 93 percent of lifeline organizations that provide essential services anticipate an increase in demand in 2009.

In Louisiana, Greene said, the survey showed the funding decreases were spread evenly across the state with no particular region hit harder than another.

The agencies reported the greatest decreases in funding from state government, followed by donations from individuals, United Ways and other corporate giving programs and foundations, respectively.

At one local agency, Catholic Charities of the Diocese of Baton Rouge, spokeswoman Carol Spruell said her agency’s funding is pretty even with last year.

“I think the work we’ve done in disaster relief has heightened our profile,” Spruell said.

The agency’s funding comes mostly from Catholic Charities USA and others for disaster relief work,  along with government grants and the United Way.