Non-profit agencies are experiencing escalating financial woes and they will only worsen without greater investments of dollars and volunteers, say Central Alberta community leaders.
Heather Gardiner, executive director for the United Way of Central Alberta, said a number of organizations funded by United Way in the region are struggling to make ends meet and may not survive in part because federal and provincial cash injections have been slashed in recent years. The United Way, the main vehicle for funding core costs, is trying to stay on top of growing needs.
The United Way aims to raise $2 million by Dec. 31 to directly fund 32 local non-profit agencies that serve a everyone from youth and seniors to those suffering from visual and mental challenges. United Way also indirectly supports dozens of others through community initiatives.
So far, it’s reached 55 per cent of its campaign goal — or $1.096 million. Last year, the United Way’s fell short of its goal for the first time in 27 years — $1.84 million out of $2 million was raised.
Gardiner believes many Central Albertans are unaware of the extent of problems facing non-profit organizations during weaker economic times.
Besides money issues, many organizations are lacking volunteers.
“If people knew how much this sector, which provides so much critical basic need care, is struggling in these storm conditions, they would send out lifelines,” said Gardiner. “We need people to help with marketing, financial management, to set up board meetings, and to bring their technical expertise to these groups.”
Organizations are doing whatever they can to stay afloat. Big Brothers Big Sisters of Lacombe has held numerous fundraisers, including bake sales and bottle drives.
It receives dollars through the United Way for programs and will receive emergency monies as well to bridge the gap.
It hadn’t applied for core funding because it had another sponsor in the past, which has since informed Big Brothers Big Sisters it can no longer commit to these dollars.
The United Way is the only long-term contributor for nonprofit core funding in Central Alberta, outside of government. Family and Community Support Services, funded 80 per cent by the Alberta government and 20 per cent by the municipal government, injects dollars into preventative programs.
Red Deer and District Community Foundation is considered a 360-degree grantor (scholarships, capital projects, environment, etc.) for programs, with some core program costs.
Shirley Berry, president of the 100 per cent volunteer-driven Red Deer Clothing Bank, said if the United Way wasn’t providing rent money, the clothing bank would shut down.
And that would be a huge loss for those who require its services, she said. It anticipates giving out 1,500 coats this year to individuals in need.
“If the public realized how many organizations that the United Way sponsors and if we all closed our doors, what’s going to happen to all these people requiring these services?,” Berry said. “A lot of these services are extended to the youth — and the youth are our future.”
Agencies that do not receive United Way funding are facing similar financial crises.
Halima Ali, executive director of the Central Alberta Immigrant Women’s Association, said her organization is facing increasing need because more newcomers are moving to the region. And yet the level of financial support isn’t increasing.
“The United Way or even the FCSS have to be equipped to help these people — they have a lot of challenges,” said Ali.
“They have to look over their programs and see what programs are working, not working and see the needs of what our new society needs.”
Government agencies also need to look at this rising need, she added.
The association receives program dollars through the Red Deer and District Community Foundation and other funders on an annual basis.
It has no core funding. Staff hours, including for Ali, are aligned with programs, so if the program funding is cut, that has an impact on the employees. Although salaries are cut, that doesn’t mean staff works any less.
The association has tried to access funding through the United Way, but its application process has been closed.
Gardiner said the United Way closed the application process so that it could fund these 32 organizations over the next several years, so they could become stronger. Next year, the United Way will develop a new funding/investment framework, with help of input from various agencies.
Financial challenges have risen in recent years across Canada. Imagine Canada’s Sector Monitor, an ongoing survey program of the national charitable and nonprofit sector, polled groups between June 16 and July 18 and found that one in six (17 per cent) are under high stress. Just over one in eight (13 per cent) experienced similar stress levels in late 2009.
More Central Alberta non-profits have moved to casinos for receiving cash revenue, but that has resulted in longer wait lists.
Gardiner also pointed out the loss of the Wild Rose Foundation grant program in 2009 which provided grants to registered, human-service, non-profit organizations to develop and enhance their organizational capacity.
The Wild Rose Foundation was combined with the Community Initiatives, which supports project-based initiatives in areas such as community services, senior services and arts and culture.
The government said it was an attempt to streamline grant programs, but for organization leaders like Gardiner, it was seen as a financial hit and loss of a Foundation that had an deep knowledge of the volunteer sector.
Gardiner would like to see candid discussions with government to develop a longtime strategy for nonprofit organizations. The struggle is that nonprofit staff are getting paid little for what they do.
“We don’t seem to value the work — we value the structural building of a bridge but we don’t necessarily the same values for a family who has just had a brain-injured child,” she said.
Alberta Culture and Community Spirit Minister Lindsay Blackett has been meeting with representatives of the non-profit/voluntary and arts sector over the last year to find out what can be done to move forward.
He has made it clear less funding is available because of declining revenues and lottery funds, said spokesman Parker Hogan.
The ministry has developed a Community Spirit program, including a donation grant based on total annual cash donations from individual Albertans.
It also offers a charitable tax credit as an incentive to get people to donate to charities. Albertans receive a 50 per cent non-refundable tax credit for every dollar donated over the $200 threshold.
ltester@www.reddeeradvocate.com