Bartering, partnering, in-kind contributions ”“ today, nonprofits are creating ways to provide essential services to a growing community of those in need.?Paul Trader, executive director of Rockland County”™s Cornell Cooperative Extension since 1979, also heads its Institute for Nonprofits. He spoke at length to Rockland Business Association members at a luncheon July 15 at Nyack Seaport, providing a national snapshot of the state of the nonprofit sector.
Trader, citing a 2008 study by the National Council for Nonprofits, said charitable nonprofits employ 13.5 million people, or 10 percent of the nation”™s workforce and generated $540 billion in annual wages. Rockland County mirrored the national image, with Cornell University reporting 11,000 people employed in the county”™s nonprofits, creating an economic impact of more than $1 billion a year.
Like their national counterparts, Rockland”™s nonprofits are experiencing “extreme fiscal stress,” said Trader. While they serve an increased number of people, contributions from individuals, corporations have decreased. “They are also experiencing a decrease in endowment values, while the cost of health care continues to go up,” he added.
Nonprofits now serving an unprecedented number of individuals and families are experiencing a severe cash flow in their organizations and are coping with the challenges via:
”¢Â   eliminating staff positions, replacing full time employees with interns or part-time help;
”¢Â   reducing management and custodial positions and asking staff to be responsible for their own administrative work;
”¢Â   instituting job-sharing programs and using contract workers paid on a per diem basis;
”¢Â   outsourcing work to professional employer organizations;
”¢Â   increasing staff contributions to health care insurance;
”¢Â   reducing hours or cutting back to a four-day work week;
”¢Â   sharing development directors;
”¢Â   reducing mailings and increasing use of e-mail; and
”¢Â   exploring ways to use social media to attract individual, corporate and foundation donations.
The impact on nonprofit employees has been significant. “Astoundingly, 80 percent of nonprofits nationally have not given a cost-of-living increase to their employees for more than two years,” said Trader. “With the cutback of hours, many are working two to three jobs to make ends meet. They are also giving up health insurance, which his placing a tremendous stress on families.”
Nationally, nonprofits have seen a significant drop in the number of people volunteering. “Here in Rockland County, perhaps because we are a smaller, closer-knit community, many people who are out of work are coming to volunteer because they can”™t make a donation” said Trader. “One woman asked if she could clean the office in exchange for taking a class. We are seeing many types of bartering going on. One company offered the use of its trucks during the day when they were not being used for a nonprofit to deliver food or supplies. Many people who pledged but can”™t keep the commitment are offering to volunteer. Any in-kind giving is a tremendous help.”
Where can nonprofits look for funding sources? “The federal government is probably the best source for grant money,” said Trader. “There is approximately $50 billion available through the American Reinvestment and Recovery Act (ARRA) for nonprofits across the nation.”
Trader said many non-profits are becoming so small they are ineligible to apply for grants. “The Cornell Cooperative Extension, which has an office in every county, is now looking at a shared business strategy to create a regionalized network,” he said.
Hicks finds a conduit for funding
Ron Hicks, president and CEO of the Rockland Economic Development Corp. and its Industrial Development Agency, has helped the county create a vehicle through which nonprofits can access funding for capital projects.
Rockland Business Association President Al Samuels told members at the RBA”™s July luncheon an IDA can establish a local development corporation (LDC) for the sole purpose of providing assistance to the not-for-profit corporations under Section 1411 of the state”™s Not-For-Profit Corporation Law.
RFCAD will be administered by the REDC and operated in the same manner as the IDA, with members of the Rockland IA serving as the board of RCFAC and will ensure compliance as required by the Public Authorities Accountability Act. Hicks said the Legislature gave its approval for the county”™s new economic aid for non-profits. RCFAC will be available through the IDA office.
