Despite strong signs of a rebound in giving for most charities nationwide, nonprofits in some pockets of the country continue to struggle mightily due to failing industries, lost tax revenue at the state and local levels, and other woes.
For example, fundraising for the arts in Tucson, Ariz., has been “anemic,” says Roberto Bedoya, executive director of the local arts council.
“Since the recession, we’ve lost more than 50 percent of our public funds.” That, he says, has compromised his ability to attract grants from foundations that want to be sure he can bring additional money to the table.
Many local organizations have felt the repercussions of less public money, fewer private foundations investing in southern Arizona, and relatively modest gifts from individuals, says Mr. Bedoya. Though individual donors have been stepping up a bit more lately, he says, “there isn’t a whole lot of money here.”
Relying on One Industry
With the coal industry struggling, many communities in West Virginia are also behind the times in terms of the economic recovery.
“We still haven’t recovered from the Great Recession,” says Paul Daugherty, president of the state’s association of grant makers. “When you look at per capita giving, assets of foundations, grant making, and itemized charitable giving, we are in the bottom 10.”
Itemized giving by taxpayers in West Virginia peaked in 2009 at $515 million, he says, and has dropped since then to $484 million in 2012, the most recent year for which data are available.
“The foundation community here is small but proud,” Mr. Daugherty says. To help them respond to economic realities, he asked a leader from the Kresge Foundation to come talk to him and other regional grant makers about how philanthropy has been used to help Detroit. “We have a lot in common with Michigan because we, too, were largely dependent on a single industry,” Mr. Daugherty says. “For us it’s coal, and for Michigan it was the auto industry.”
And indeed, times remain tough in the birthplace of General Motors. The Greater Flint Arts Council had an $800,000 budget in 2008 but managed to raise only about $300,000 that year as the economy shrank and had to take out a line of credit. Officials there are hoping 2015 will finally be the year they can pay it down.
“It’s taken all this time just to get back to level ground,” says Greg Fielder, the council’s president.
Still, there are signs of hope. Individual donors have been gradually increasing their gifts, and family foundations have been generous. Appropriations from the state arts council have been growing, too, and this year Mr. Fielder thinks he will be able to hire a full-time fundraiser to replace a staff member he lost in 2009.
Worries for the Future
Susan Landis, executive director of the Beckley Area Foundation in southern West Virginia, said that with the coal industry in decline, businesses are failing, young people are moving away, and drug problems are on the rise. The tourism industry, while growing, isn’t closing the gap, she says.
“We need more diversification of our employment base,” says Ms. Landis. “You can’t just enjoy having nice stores; there has to be some major economic driver that provides enough income, so you need the nice stores.”
Ms. Landis says her organization has done well financially during the past five years as baby boomers have retired and stepped up their charitable giving, but she doesn’t expect that trend to last.
“They did very well in their working years,” Ms. Landis says. “The next generation is what I’m concerned about.”
