Saturday, October 22, 2011

Reduced Funding Sources Present Opportunity to Reduce Nonprofits' Duplication

As reported in the San Francisco Chronicle, the difficult economic times for state and local governments, in particular, as well as other funders is presenting some nonprofits with hard choices - either merge with another nonprofit with similar programs or cease to exist.  The City of San Francisco, which spends approximately $500 million per year to fund local nonprofits that provide a variety of health and human services, is a prime example of how nonprofits must seek partnerships to survive in these times of decreased funding sources.  The article illustrates that in many instances the combining of nonprofit agencies has lead to increased services and public impact.  For instance there are presently 10 nonprofits that provide employment counseling services to the homeless.  Some of these nonprofits receive over $100,000 for providing such services; others receive between $30,000 and $40,000.  There is a strong argument that the aggregate funds could be better utilized if the various agencies combined to offer a single, comprehensive program.


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