Non-profits Feed on Government Dollars

Government Funded Non-Profits

When the County of Orange filed bankruptcy in1994 and the flow of County money stopped for a while, guess what industry was the first to face insolvency? Numerous nonprofits in the County quickly began to report that they soon would be unable to meet payroll! United Way actually set up an emergency loan program to provide temporary funding so some of them could keep their doors open, at least a little bit.

The big secret is that many non-profits are really government contractors and rely on government funding for their existence. TV news reported yesterday that Home Boy Industries, a non-profit that according to its web site focuses on gang intervention and re-entry services in the Boyle Heights area of Los Angeles, is facing a financial crisis due to State budget cuts. No, the problem is not the level of charity giving by donors, it is shrinkage of government funding!

In Orange County nonprofits are also feeling the reality of their government funding shrinking or disappearing. A Register report recently focused on a women’s shelter and the crisis it faces when the Legislature and Governor did not just cut funding for such programs, the funding was totally eliminated.

Not only do many nonprofits feed on government funding, in many cases their very existence depends on it. We can expect to see a real shake out of these organizations as government revenues have tanked, and some people think that is long overdue. If you feel differently, get out your checkbook and make or increase your contributions. Otherwise, vaya con Dios!

About Over But Not Out

A retired Orange County employee, and moderate Republican. The editor seriously does not know OBNO's identity as did not the former editor, but his point of view is obviously interesting and valued.