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Prof. Deepak Bhargava on Nonprofits in the Time of Coronavirus

Writing in the Chronicle of Philanthropy, three writers grappled with a thorny question: what happens to nonprofits under the conditions of economic contraction sure to result from the coronavirus?

Democracy Alliance president Gara LaMarche, Progressive Multiplier Fund executive director Philip Radford and Beeck Center for Social Impact and Innovation at Georgetown University ED Sonal Shah write:

…[N]onprofits, especially groups providing and advocating for a social safety net, are typically underfinanced. A report released by Candid shows that half of all U.S. nonprofits are operating with less than one month’s cash reserves, leaving those organizations particularly vulnerable.

If normal patterns follow, we won’t see them getting the help they need from grant makers. Generally, foundations give 5 percent of the average value of their endowment from the previous three years, meaning a steady decline in giving during and after a recession. 

What’s worse, according to data provided by Candid, foundation investments in helping nonprofits achieve financial sustainability after the last recession dropped more precipitously than their overall giving. During recessions is precisely when we should be both supporting and strengthening nonprofits, especially those that serve the neediest and advocate for them.

So what is to be done? The writers spoke to SLU professor Deepak Bhargava, who explained that “in economic downturns, we must do everything in our power to protect and expand the social safety net that offers a lifeline to those who are most deeply impacted and also strengthen the community-led organizations that advocate for that safety net. The community-based nonprofits that serve, organize with, and advocate for low-income people are on the front lines.  They are and yet are also most at risk during an economic crisis.”

So what does that look like? The authors advocate for philanthropists to act now in order to push Congress in the right direction, and to help nonprofit groups weather the storm by taking the following three steps:

  1. Help groups quickly test efforts to improve their fundraising efforts.
  2. Show groups how to turn increased public awareness into long-term financial viability.
  3. Increase flexibility and loosen restrictions on low-interest loans and other program-related investments.

Read the full article here.

Photo by Daniel Foster via flickr (cc-by-nc-sa)

Home, Labor Studies, Urban Studies

From Fast Food to Nonprofits: $15/hr in NYS

As New York State moves towards a $15/hr wage floor for fast food workers, some are asking: are fast food workers enough? In City & State this week, James Parrott and Jennifer Jones-Austin (Opinion: The Importance of a $15 Wage Floor for New York’s Nonprofits) argue for a wage increase for “[t]he 250,000 workers in New York’s nonprofit sector providing essential human services.” They write:

Over 80 percent of these workers are women, most are not represented by a labor union, and nearly two-fifths have at least a 4-year bachelor’s degree (twice the share as in fast food).

Yet half of this workforce makes less than $15 an hour. That’s not nearly enough to provide for basic family budget needs in any part of our state. Like fast-food workers, the earnings of many human services workers are so low that they qualify for public assistance.

Human services pay, they note, is directly linked to state allocations for human service contract funding. They write:

It makes good fiscal sense for the state to increase human services contract funding to raise the pay of low-paid nonprofit workers. High employee turnover will decline, yielding hiring costs savings and improved service quality. After all, many of these government-funded services are intended to help low-income families get back on their feet and to better care for their children and other family members. Improved delivery of these essential services will save taxpayers in the long run, as will the reduced use of public assistance by nonprofit workers.

For the full piece, visit City & State.

Photo by The All-Nite Images via flickr (CC-BY-SA).

Home, Murphy News

Prof. Abramovitz’s Human Services Research Gains Press

Prof. Mimi Abramovitz, who teaches at Hunter’s Silberman School of Social Work and here at Murphy, has been working on a study along with co-coordinator Jennifer Zelnick that looks at human service workplace and practice trends.

Recently, this work has been picking up press: in November, New York Nonprofit Press wrote about the human service workforce study, while two recent podcasts from the University of Buffalo’s School of Social Work discuss the effects of privatization on human services. (See Part 1 and Part 2.) Finally, in September, WVOX 1460AM ran an interview of Prof. Abramovitz conducted by Allison Sesso, Executive Director of Human Services Council of New York City, on Human Service News and Views.