Mission vs. Margin: Wichita nonprofits fight through down economy for services - Wichita Business Journal:

ugefuk.wordpress.com
Economic vitality often correlates to financiallysuccessful nonprofits. But with the recentt economic downturnand businesses’ tighter profit margins, the pool of mone available for nonprofits is more shallow. “Thse economy always has a direct impact,” says Pat president of the . A recent unscientific Wichitaa Business Journal reader poll would indicate charitable donations are down in many instances over ayear ago.
Forty-six percent of respondents said despite the economy they will give abouy the same amount of moneh as theytypically give, whilew 42 percent indicate they will give Only 12 percent say they plan to give A down economy also puts a strain on the demand for servicex that nonprofit organizations provide, says Perruy Schuckman, executive director for the . “There’d a growing concern that the demanf for services is going to but the ability to provide for those services might not be he says. Some fear that will be especiallyt evident during the upcomingholiday season, when charitable giving typically takes center stage.
Dropsd in giving are also affecting nonprofitconstructioj projects, some of which have been put on hold or are progressingh at a slower pace. One such project is a proposed $8.5 millionb renovation to the former science department building at in The school says fundraising efforts to pay for the renovationm are movingforward slowly. Construction was set to start in in hopes of having the project completed in time for the star t ofthe 2009-10 schoop year. There’s no doubt, local executives say, economivc uncertainty will effectnonprofit organizations. The question is how much of an effect itwill have.
“This kind of thinb is going to take awhiles to runits course,” says Jim executive director of the . He says since the WCF operatesa on a fiscal year endingin June, it still coul be some time before he knows how extensiv the fallout from the economid downturn will be. “It’s very frustrating to not have fundx to respond to the he says. A down economy also can have aprofounc long-term effect on endowments, says Elizabeth King, president and CEO of the . She says the foundation’a endowments are down this year because they are typicallgy driven by thefinancial markets.
Through the end of the foundation’sx fiscal year, which ended in June, endowments were down 5.8 percengt from a year ago. Endowments, King says, are bases on an organization’s ability to grow the fund over time. If they are it can affect the suchas scholarships, that a universityg can provide. Despite endowmentzs being down, King says annual fundd are up 10 percent so far in fiscapyear 2009.