Worthy causes outpace incoming money

Corvallis has a reputation for generosity among the 200 or so nonprofit agencies operating in the community. But that pool of money is finite, and as worthy causes increase, both within the community and beyond, the amount going to each organization can be spread thin.

Community Outreach Inc., which serves the needs of some of the county's most vulnerable residents, including the homeless, transients, displaced families and those with drug and alcohol addictions, often finds itself struggling financially to serve clients.

Executive Director Rich Donovan said by its very nature, Community Outreach will always be looking for new resources, new donors and new grant monies.

"We struggle, but the needs are always more than we'll ever have enough money for," Donovan said. "In terms of financial stability we're certainly in better shape than we were three or four years ago."

However, going into fiscal year 2007-2008, COI is facing a $60,000 shortfall. That's because the money it had budgeted to arrive from another nonprofit, United Way of Benton and Lincoln Counties, hasn't arrived. And the reason United Way is struggling to keep donations flowing into local organizations is exactly the same reason Community Outreach is facing challenges: A finite pool of donations is being distributed to more and more locations.

At United Way of Benton and Lincoln Counties, Jennifer Moore, the new executive director, said Community Outreach hasn't been singled out by United Way.

"The overall pattern of giving has been declining," Moore said. It's not that people are less generous. Instead, the number of local nonprofits is increasing, offering new ways for people to donate their money. In addition, huge fund-raising efforts for national disasters such as Hurricanes Katrina and Rita, as well as international ones like tsunamis, pull donation dollars out of Benton County.

The result: Local organizations are seeing fewer and fewer dollars coming in. And with fewer dollars to distribute, Moore said, United Way isn't able to support nonprofits at the same level as it was in the past.

Moore, who has four years experience with United Way organizations and who came to Benton County's organization in December, is leading a complete organizational assessment to address the funding issue and the distribution of shrinking funds.

She is hoping to make the donation process more transparent so that donors better understand how their money is being distributed and how it is helping within the community.

"A lot of programs are doing wonderful things," Moore said, and she wants United Way donors to see what kind of return the community is getting with their donation.

United Way and Community Outreach will discuss the funding issues in early April.

Meanwhile, Community Outreach is looking at ways to cut corners, as well as looking for new revenue sources.

"I don't intend to lay anyone off, but we have frozen hiring and wage increases for a couple of months until we can see if we can get through the rest of this fiscal year," Donovan said.

Community Outreach receives $100,000 from the City of Corvallis, and has financial arrangements with Samaritan Health Care and the Veterans Administration. The rest of its funding comes from grant money and donations, and a large team of volunteers, between 600 and 700, helps provide many services to clients.

As insurance costs, utilities and other operational costs increase, and funding shrinks, the challenges for Donovan and his staff multiply.

"We provide a quality service regardless of reimbursement and we are helping people straighten their lives out," Donovan said. "We are the agency of last resort and so we tend to see people who are chronic meth users, alcoholics, and who tend to be older. We also see mothers and fathers who have their own issues and have their kids with them."

Because Community Outreach is a rather unusual agency that doesn't fit the normal nonprofit model, Donovan said it's been more difficult to get grants. However, the organization has an AmeriCorps grant writer who is beginning to have success in that arena.

Donovan is optimistic that even if United Way isn't able to provide the amount of money Community Outreach budgeted, other donors in the community will come forward to help with the shortfall.

"We always live kind of on the edge here."

To learn more

For more information on Community Outreach, call 758-3000 or go to http://www.communityoutreachinc.org. For more information on United Way of Benton and Lincoln Counties, call 757-7717 or go to http://unitedwayblc.org/