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March 29, 2002/Nisan 16 5762, Vol. 54, No. 28
Groups hurting for funds
BARRY COHEN
Editor
In Arizona's recession economy, nonprofits that depend upon state funding are faring worse, in some cases, than those relying on private donations.
Jewish Family and Children's Services is one of the managing partners of the Family Builder's Program, a $1 million program which prevents the abuse and neglect of children. The Arizona Legislature most likely will cut 50 percent of this year's operating budget, and next year could eliminate it completely, said Gail Parin, JFCS president and chief executive officer.
JFCS gets 70 percent of its $20 million budget from the state. The Legislature is considering cuts of $1.8 billion from its total 2002 and 2003 budgets.
At JFCS, private donations have been down since Sept. 11, Parin noted, making matters even worse.
"There may be no way to make up that kind of money," she said.
To maintain services, JFCS is hoping for increased contributions from a major fund-raiser in April and a women's auxiliary event in May, she said.
The Council for Jews with Special Needs, which receives no funding from the state, nevertheless has felt the affects of a recession economy, said Becca Hornstein, executive director. Repeat donors are struggling to match last year's levels, she noted.
"They refer to the shaky economy. ... They are more hesitant and unable to be as generous as they want to be," she said.
A hopeful sign, according to Hornstein, is that CJSN's annual fund-raiser in November raised one-half the agency's operating budget. This was despite the fact it took place on the same night as the seventh game of the World Series.
Other Valley nonprofits, whether dependent upon state funding or not, are facing pressures of the effects of a recession economy and impending legislative cuts, noted Tiffany Bock, assistant director of the Arizona Mental Health Association.
The recession has meant more and more people losing jobs and health insurance coverage, she noted. People in need often look to nonprofits for help, "but nonprofits are not getting increased funding to respond to the increased need," she said.
At St. Vincent dePaul in Phoenix, calls for assistance - for food, clothing, furniture, and help with rent and utilities payments - have greatly increased since Sept. 11. However, private donations have not increased to meet these needs, said Terri Wogan, the agency's community relations director.
Further, the demand for meals from working poor families has increased by more than 40 percent since Sept. 11, she added. Between September and January, the agency served 29,287 meals.
Some programs at St. Vincent dePaul may have to be cut back - such as the Youth Clothes Closet that provided $200,000 in vouchers for back-to-school clothing last year - unless private contributions increase, said Wogan.
While the Valley of the Sun United Way met its fund-raising goal of $47.1 million last year, $2 million was earmarked for crisis response programs for the Sept. 11 tragedy, said Nicole Magnuson, senior vice president of marketing and communication.
"We now need to get people refocused on local needs ... like domestic violence or kids being drawn toward gangs," she said.
United Way faces pressures to raise money to make up for the funds sent back East and to replace programs and services the state would normally provide, she added.
"It is a difficult time for nonprofits. This is not one of our finest, shining moments," noted Parin.
Federation proves to be exception
When the annual campaign of the Jewish Federation of Greater Phoenix began in the fall, signs were not hopeful that the fund-raising effort would meet expectations, commented Art Paikowsky, federation executive vice president.
After Sept. 11, there was a period of uncertainty about how the 2002 annual campaign would compare to 2003, as people contributed to services in New York and Washington, D.C., instead of to the local federation, he said.
In addition, the pace of collections of pledges to the campaign has been slower this year than last year. However, card for card, people are pledging 3.9 percent more this year, he added.
Currently, more than $3.6 million has been pledged, said Josh Belkin, federation major gifts director. Last year at this time, $3.5 million had been pledged.
In addition, federation has raised nearly $700,000 for Israel Now, providing funding for Israel's self-defense, said Paikowsky, who pointed to bullish economic news and increasing consumer confidence to explain the success of the annual campaign.
Federation does not depend on state funding for its annual campaign, which supports 11 local Jewish agencies and 21 national agencies.
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