Wednesday, February 16, 2011

Funding Shortfalls Continue to Challenge Us All

Funding shortfalls from government and the private sector continue to negatively impact South Carolina’s nonprofits. Organizations that previously seemed impervious to the economic downturn are now suffering tremendously. Nonprofits are cutting staff and programs and simply doing whatever is necessary to keep the doors open. The sad news is there is no immediate resolution on the horizon.

The reality is that organizations must operate using a scaled-down model. In some cases, nonprofits have reduced their staff by 50%, yet the demand for the services they provide has increased. Foundations must also be willing to change with the times. For example, the Sisters of Charity Foundation is funding operational expenses for nonprofits. This is something we did not consider for many years. To allow more organizations to apply for our Caritas Grants program, which are grants that meet basic needs, we have raised the operating budget limit for potential applicants. In an effort to be grantee-friendly, the Foundation is lifting a process that has been in place. If an organization is funded in one year, they can now apply for a grant the following year. Previously, a full year had to expire before this was possible, and often grantseekers were forced to wait nearly a year and a half to reapply for funding. Additionally, the Foundation is looking at providing restructuring and reorganization grants to allow nonprofits to look at new models, mergers and even dissolution. 

 
The fact is that our Foundation funds are tight. This is the smallest budget we have ever had in our 15-year history. We cannot let this stop us from reaching as many nonprofits as possible. We will have three grant cycles in 2011 and, along with our initiative funding, we will award more than $2.4 million across South Carolina. In addition to grantmaking, the Foundation will provide multiple learning opportunities and training sessions for nonprofits to attend free of charge. A current list is updated regularly on our Web site. These free sessions are geared towards helping organizations find ways to be more successful and to operate more efficiently. The programs will be available in Columbia, S.C., at the Foundation office as well as other locations in the state. So even though times are extremely challenging, there are still many opportunities.


Success may be measured differently this year. Our success will be measured by how many organizations we can assist and therefore, how many individuals and families living in poverty we can help.  It is my hope that every organization operating will find a way to garner the resources they need to operate necessary programs this year. Otherwise, needy individuals and families will continue to suffer and bear a large part of the brunt of these tough economic times.







Tom Keith is the president of the Sisters of Charity Foundation of South Carolina

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