New Jersey nonprofit and charity groups are still suffering from decreasing donations and cuts from federal funding, as demand for their work grows, according to a report by NorthJersey.com. "Without a doubt, it’s an extremely difficult time," said Linda Czipo, executive director of the Center for Nonprofit Corporations in North Brunswick. "It’s forcing organizations to have very honest conversations...
A 2000 file photo of a truck at American Red Cross Morris County chapter.New Jersey nonprofit and charity groups are still suffering from decreasing donations and cuts from federal funding, as demand for their work grows, according to a report by NorthJersey.com.
"Without a doubt, it’s an extremely difficult time," said Linda Czipo, executive director of the Center for Nonprofit Corporations in North Brunswick. "It’s forcing organizations to have very honest conversations about how they do things, and what can be done."
Czipo’s organization conducted its own online survey of 326 Jersey nonprofits earlier this year. More than 40 percent of the respondents reported they had frozen or cut salaries, and nearly a third had cut staff.
The tighter budgets have also forced nonprofits to refocus their fundraising efforts and work harder to attract donors.
"I spend hours and hours, much more time than I ever have, doing fundraising," said Kathy DiFiore, founder of Several Sources Shelters, a women’s shelter group in Morris County. "Before, I would send out a mailing and say we need used cars, and two or three benefactors would step up. Now, we can’t even get used clothing for the winter."
DiFiore estimated donations had decreased nearly 20 percent this year, forcing her to lay off four staffers and shut down a shelter in Mendham, despite a surge in demand for services.
Many nonprofits groups, like the American Red Cross in Central Jersey, have seen cuts in corporate and private foundation grants.
As a result, the group has shifted away from special fundraising events, like auctions and golf tournaments, which tend to be more costly, said chief executive Kevin Sullivan.
"We hold monthly sessions with donors that we call ‘60 Minutes with the Red Cross,’" Sullivan said. "We’re trying to get to really know our donors."
Some organizations have adapted to the new financial environment.
Phyllis Dunlop, a vice president of resource development at the Community Food Bank in New Jersey, said the size of individual gifts has generally shrunk, but more donors are chipping in smaller amounts.
The group has also seen an uptick in its volunteer rate, which has increased 30 percent over the last year.
"I think that’s a reflection of the times," Dunlop said. "People really want to help and may not have the financial means to do it, but feel they can come to volunteer."