Growth of nonprofit sector puts a strain on fundraising

By BENNETT HALL

Corvallis Gazette-Times

Cathy Kennedy was at the end of her rope.

A 32-year-old single mother with three boys, Kennedy works in the admitting department at Good Samaritan Regional Medical Center. She has full benefits, but her health insurance doesn't come close to covering the full costs of treatment for her two older sons, who have significant medical expenses that gobble around half of her take-home pay each month.

First she fell behind on her rent. Then she got an eviction notice. In desperation, she started contacting local nonprofits asking for help.

"I called over 30 places looking for assistance," Kennedy said, but none had money to give.

Finally she connected with We Care, a small Corvallis interdenominational group that provides one-time emergency aid for household expenses. A $352 payment to her landlord got her caught up - for now.

"That doesn't help me with September," Kennedy said last week.

We Care is intended to be a last resort for folks unable to get help from other agencies, but the need keeps growing.

"We generally get five or six (requests) every week," said We Care board Chairman Megha Shyam. "We're able to help about half right now."

The same scenario is playing out all over the mid-valley, where not-for-profit social service agencies are struggling to answer a growing chorus of cries for help.

Part of the problem is the weak economy, which has cut into donations to nonprofits everywhere. But there's a longer-term trend that's making matters worse, say charitable agencies that serve the public: a proliferation of nonprofits competing for contributions.

"The demand for nonprofit dollars keeps increasing, but the supply keeps dwindling," said Kavinda Arthenayake, past president of the United Way of Benton County. "Everybody's clamoring for the same dollars."

It's the same story in neighboring Linn County.

"Over here we've seen an increase in nonprofits," said Greg Roe, executive director of the Linn United Way.

Growth industry

The mid-valley's situation is a microcosm of the rapidly expanding nonprofit universe. Statewide, the list of charitable organizations now numbers 13,718, not counting religious institutions, up a whopping 40 percent since 1998. Nationally the numbers are even more staggering, with an estimated 1.1 million charities operating in the United States.

And every single one of them wants your money.

For folks out soliciting donations for everything from the local Little League team to the Oregon Food Bank to the American Red Cross, that means they have to work harder than ever for every penny they get.

"You're competing with a million other charities now," said Michael Nilsen, a spokesman for the Association of Fundraising Professionals, a national trade group based in Arlington, Va. "And about 80 percent of fundraising goes to the biggest 20 percent of charities, so if you're not one of the biggest 20 percent, it's even more competitive."

Donor dollars can also get siphoned off by "flavor of the month" appeals, said John Korb, past president of the association's Oregon chapter and director of philanthropy for Adventist Medical Center in Portland.

After Hurricane Katrina, for instance, Adventist put out a call for assistance that resulted in a temporary drop in support for its own operations. But there also was an unexpected long-range benefit - the hospital's appeal drew some first-time contributors, many of whom continued to give to Adventist after the Katrina crisis abated.

"We were able to attract new donors," Korb said.

Survival strategies

Growing the donor base is just one way that nonprofits can respond to an increasingly competitive fundraising environment. Korb and Nilsen also offered these recommendations:

• Sharpen your focus - concentrate your resources on your core mission rather than branching into other areas.

• Get lean - donors want to see efficient operations with the lowest possible overhead.

• Play well with others - look for opportunities to partner with like-minded organizations to reduce expenses and maximize results.

• Spread the word - use aggressive marketing techniques to tell potential donors about your organization and why they should support it.

"The not-for-profit sector in many ways is just as entrepreneurial as the for-profit sector," Korb said.

In today's overcrowded nonprofit world, the most successful charities are likely to be the ones that do the best job of competing for donors' attention - and their checkbooks. It's apt to be a bruising fight that some may not survive. But in the long run, said Nilsen, that's not necessarily bad.

"Maybe this competition ultimately is a good thing," he said. "Maybe it will whittle down the number of nonprofits."

Numbers game

Finding ways to shrink the number of philanthropic organizations jockeying for contributions has been a major topic of discussion in nonprofit boardrooms for several years, Nilsen said, but so far there's been little in the way of mergers or consolidations.

In Benton County, where donor fatigue seems to have reached epidemic proportions, the United Way is hoping to move that discussion forward. The organization is teaming with Leadership Corvallis on a project to compile a list of all nonprofits operating in the county and group them into categories based their missions.

With that information in hand, United Way officials hope to encourage similar groups to merge with a view to cutting down the charitable clutter. In effect, they'll be suggesting that some organizations should shut down, or at least take a lesser role, for the greater good. Obviously, that will be a tough sell.

"Nonprofits are driven by people's passions," said Biff Traber, incoming president of the United Way of Benton County. "That's part of the dilemma here. You can't dictate to people."

Consolidation, Traber said, is "the dead moose on the table. It's the big smelly thing you don't want to deal with." But he argues it may be the only way to thin the nonprofit herd to a manageable size, both for fundraisers and for donors.

"I'm not sure what the magic number is," said his predecessor, Arthenayake. "But, at the same time, how many charitable auctions can you go to? How many golf tournaments can you attend? How many pizza nights can you have?"

Roe, the Linn County United Way director, rejects the idea that some nonprofits should be asked to step aside so the rest can thrive.

"We just focus on our work and why people should give to us," he said. "I'm one who thinks you need to give where your heart is at."

Hard decisions

As calculating as voluntary consolidation may sound to some, it may be less cold-blooded than the likely alternative: a Darwinian selection process driven by the philanthropic free market. The fittest charities will survive while others go under.

So where does that leave the people in need, the folks all these charities were designed to help?

For people such as Cathy Kennedy, who's still struggling to keep her own head above water, the argument is more than academic.

Like many struggling nonprofits, Kennedy is doing whatever she can to make ends meet. She's applied for Social Security disability benefits for her medically challenged sons, but she's still waiting for the first check to arrive.

In the meanwhile, she's tightening her budget wherever she can. Her latest cost-cutting strategy involves moving out of her modest house and into an apartment to save on rent - even though that means giving up the family dog, Buddy.

"I had to make a choice," she said. "I either pay my rent this month, or we move."

Who Gets What

Shows donations by type of nonprofit organization

Donations Revenue

Education $55,540,115 $125,764,661

Environmental quality, $1,708,062 $5,521,262

Human services-other, multi-purpose $1,560,202 $90,708,240

Health, general, rehabilitative $1,348,291 $404,903,798

Housing, shelter $1,292,054 $3,874,054

Youth development $1,153,212 $3,445,970

Philanthropy & volunteerism $766,187 $993,959

Arts, culture, humanities $637,910 $1,908,436

Food, nutrition, agriculture $282,905 $6,424,272

Mental health, crisis intervention $242,399 $906,064

Recreation, leisure, sports, athletics $218,405 $971,468

Religion, spiritual development $137,981 $178,358

Community improvement, development $82,084 $190,160

Animal-related activities $55,775 $138,022

Public protection: crime, courts, legal services $40,885 $720,504

Unknown, Unclassifiable $14,328 $99,772

International $8,157 $8,168

Civil rights, civil liberties $0 $6,326

Disease, disorders, medical disciplines $0 $0

Employment, jobs $0 $118,594

Mutual membership benefit organizations $0 $111,799

Public affairs, society benefit $0 $30,662

Public safety, disaster preparedness & relief $0 $27,785

Science $0 $22,548

TOTAL FOR THE PERIOD: $65,088,952 $647,074,883

Top Organizational Recipients

Donations Revenue

1 Oregon State University Foundation $52,880,918 $102,798,164

2 Good Samaritan Hospital Foundation, Corvallis $982,417 $1,283,460

3 Benton Habitat for Humanity $965,508 $1,321,404

4 Corvallis Public Schools Foundation $768,644 $809,166

5 United Way of Benton and Lincoln Counties $675,473 $804,670

6 Old Mill Center for Children and Families, Inc. $576,983 $1,862,133

7 Conservation Biology Institute, Inc. $569,624 $1,071,188

8 Community Outreach, Inc. $545,230 $950,319

9 Santiam Christian Schools $504,172 $4,839,271

10 Oregon 4-H Foundation $435,648 $982,409

11 Greenbelt Land Trust, Inc. $428,584 $742,539

12 Heartland Humane Society $412,567 $537,627

13 Boys and Girls Club of Corvallis $346,556 $1,515,581

14 Oregon State University Alumni Association, Inc., The $276,545 $2,132,511

15 Alsea Valley Gleaners $231,223 $232,122

16 Benton County Foundation, The $220,920 $713,311

17 Center Against Rape and Domestic Violence $206,595 $682,934

18 Benton Hospice Service $202,196 $2,755,881

19 Jackson Street Youth Shelter, Inc. $183,986 $240,746

20 Home Life, Incorporated $161,563 $1,862,725

21 Friends of the Family Ministries $146,981 $228,095

22 Benton County Historical Society $131,941 $247,671

23 Corvallis Neighborhood Housing Services, Inc. $122,439 $728,429

24 Grace Center for Adult Day Services $117,807 $317,340

25 Options Pregnancy Resource Centers, Inc. $113,204 $138,710

26 Philomath Scout Lodge $110,497 $138,351

27 Corvallis Caring Place $102,919 $1,240,820

28 Head Start in Lincoln County $90,188 $90,188

29 Ashbrook Independent School $87,178 $1,429,948

30 NIRSA Foundation $85,094 $115,508

31 Oregon Agriculture in the Classroom Foundation $83,569 $119,621

32 Strengthening Rural Families $81,734 $82,987

33 Corvallis-OSU Symphony Society $79,824 $166,895

34 Vina Moses Welfare Center, Inc. $77,485 $122,893

35 Corvallis Pastoral Counseling Center, Inc. $76,597 $333,072

36 Cornerstone Associates, Inc. $72,648 $3,283,644

37 Love in the Name of Christ of Benton County $72,646 $88,185

38 Philomath Frolic and Rodeo, Incorporated $70,410 $157,261

39 Corvallis Sister Cities Association, Inc. $69,522 $83,397

40 Chintimini Wildlife Center $66,832 $117,953

41 Corvallis Environmental Center $65,314 $89,460

42 College of Philomath Community Corporation $64,037 $87,441

43 Philomath Youth Activities Club, Inc. $55,814 $265,136

44 Corvallis Youth Symphony Foundation, Inc. $54,706 $68,520

45 Calyx, Inc $53,399 $46,138

46 Da Vinci Days, Inc. $52,051 $207,204

47 South Corvallis Food Bank $51,682 $51,682

48 Philomath Community Foundation $48,887 $51,477

49 Coast Range Association, Inc. $45,556 $45,200

50 Grace Lutheran Church Foundation $44,604 $69,252

51 Benton Furniture Share $43,966 $49,875

52 Majestic Theater Management, Inc. $43,101 $209,245

53 CASA-Voices for Children $39,835 $120,032

54 Benton County 4-H Leaders Association $39,591 $63,210

55 Golden Bond Rescue of Oregon, Inc. $39,408 $89,282

56 Bellfountain Cornerstone Christian School $38,122 $221,441

57 Benton County Committee for the Prevention of Child Abuse, $35,804 $210,449

58 Corvallis-Benton County Public Library Foundation, The $35,656 $46,986

59 Corvallis Arts Center, Inc. $34,839 $312,277

60 Corvallis Waldorf Association, The $34,813 $486,462

61 Heart of the Valley Children's Choir $32,667 $115,162

62 Corvallis Community Children's Center, Inc. $32,563 $758,538

63 Corvallis - Benton County Council of Religious Organization $32,091 $32,105

64 Cascade Pacific RC & D Area, Inc. $31,178 $1,286,469

65 Institute for Applied Ecology $30,057 $507,605

66 Oregon Websites and Watershed Project, Inc. $30,000 $30,000

67 Philomath Community Services, Inc. $28,527 $28,724

68 ArtCentric Endowment, Inc. $27,895 $37,255

69 Zonta Service Foundation of Corvallis $26,996 $67,567

70 Chamber Music Corvallis, Inc. $26,333 $68,759

71 Corvallis Little League $22,675 $74,662

72 Assistance League of Corvallis $22,360 $88,621

73 OSU Beaver Dugout Club, Inc. $21,655 $37,661

74 International Student Fellowship, Inc. $20,731 $20,731

75 Monroe School District #1J Foundation $19,388 $20,389

76 Circle of Hope Drop-In Center $19,353 $22,726

77 Senior Citizens Foundation of Benton County, Inc. $17,483 $19,856

78 ARC of Benton County, Inc., The $17,147 $619,319

79 Audubon Society of Corvallis $16,367 $40,550

80 Senior Citizens Council of Benton County, Inc. $16,018 $600,942

81 Cascades Campus Foundation $15,891 $20,753

82 Chintimini Chamber Music $14,278 $26,848

83 Mid-Valley Housing Plus $14,121 $100,417

84 Great Basin Society, Inc., The $13,549 $169,399

85 Planting Seeds, Inc. $13,383 $22,541

86 Benton County Fairgrounds Foundation $13,105 $19,773

87 Garfield Elementary PTA $12,087 $24,921

88 Alsea Rural Health Care, Inc. $10,269 $151,921

89 Benton County Veteran's Memorial, Inc. $9,638 $10,717

90 Corvallis Kiwanis Foundation, The $9,591 $22,410

91 Wilson Elementary PTA $8,337 $20,858

92 Albanian Alps Institute $8,157 $8,168

93 Corvallis Montessori Society, Inc. $7,928 $764,812

94 Willamette Valley Community School, Inc. $7,122 $10,433

95 NW Wildlife Conservation, Inc. $7,100 $1,342

96 Corvallis Fall Festival $6,272 $116,265

97 Windmill Center, Inc., The $6,200 $14,134

98 Mental Health Association of Benton County $6,090 $277,541

99 Community Housing Services $6,000 $761,086

100 Northwest Habitat Institute $5,836 $283,334

101 PayE, Inc. $4,843 $21,611

102 Financial Stewardship Resources, Inc. $4,675 $19,510

103 Corvallis Aquatic Team $4,488 $277,900

104 Newman Foundation of OSU, Inc. $3,885 $12,182

105 Corvallis Multicultural Literacy Center $3,849 $54,066

106 Philomath Montessori School $3,602 $96,661

107 Willamette Institute for Biological Control, Inc. $3,285 $43,385

108 BENCO $2,890 $3,099,505

109 O.M. Associates Inc of Oregon $2,117 $37,555

110 Oregon Pacific Area Health Education Center $2,100 $302,322

111 Housing, Employment and Learning Programs for Self $1,700 $1,700

112 Corvallis Community Theatre, Inc. $1,344 $77,352

113 Marys River Watershed Council $1,080 $125,165

114 OSU Folk Club Thrift Shop, Inc. $1,075 $87,101

115 Friends of Corvallis Police, Incorporated $1,050 $1,052

116 Oregon Cascades (ORCA) Orienteering Klubb $978 $3,565

117 Oregon Master Gardener Association (PARENT) $785 $57,237

118 Sandcastle Preschool $683 $51,274

119 Altrusa International, Inc., of Corvallis $565 $12,346

120 Friends of the Corvallis Public Library, Inc. $500 $53,553

121 Northwest Scholastic Press $400 $18,270

122 Business Enterprise Center, Inc. $350 $43,587

123 DC-3 Aviation Museum, The $100 $100

124 3 Sigma Institute, Inc. $70 $2,570

125 Council For Children $49 $582,750

126 ADA Build It Right, Incorporated $0 $3,928

127 Albany General Hospital $0 $67,377,719

128 Childbirth and Parent Education $0 $3,030

129 Firstcare Health Foundation $0 $166,520

130 Firstcare Medical Foundation $0 $27,523,059

131 Good Samaritan Hospital, Corvallis $0 $181,909,711

132 InterCommunity Health Plans, Inc. $0 $57,345,938

133 Mid-Valley Healthcare, Inc $0 $58,173,826

134 Rainbow Health Resources $0 $193

135 Speech Camp All Stars Incorporated $0 $518

136 Work Unlimited $0 $5,099,033

137 Corporation for Ocean Research and Learning $0 $0

138 Corvallis Community Band $0 $13,509

139 Corvallis Folklore Society, Inc $0 $16,802

140 Corvallis Repertory Singers $0 $18,567

141 Crossroads, Where World Friendships Begin, Inc. $0 $470

142 Kalanjali: Corvallis Indian Fine Arts Academy $0 $0

143 Music for All - Corvallis $0 $12,202

144 Oduduwa of Oregon $0 $235

145 Opera Theater Corvallis, Inc. $0 $12,872

146 Pacific International Livestock Exposition Foundation $0 $24,500

147 South Benton Communities Historical Association $0 $15,474

148 Children's Array of Psychiatric Programs $0 $129,664

149 Coastal Range Food Bank, Inc. $0 $0

150 Hour Exchange $0 $1,774

151 Mary's River Gleaners Association $0 $6,346

152 Oregon Association of Family and Consumer Sciences $0 $4,297

153 Plaza Comunitaria Hispano Latino Americana Las Americana $0 $0

154 Samaritan Health Services, Inc. $0 $73,353,147

155 Samaritan Seniorcare, Inc. $0 $5,548,016

156 South Benton Community Center in Alpine $0 $22,299

157 South Benton Nutrition Program, Inc. $0 $9,054

158 Volunteer Interfaith Caregivers of Corvallis, Inc. $0 $7,703

159 Wellspring, Empowering Women Worldwide, Inc. $0 $3,372

160 Ahimsa Sanctuary Foundation $0 $0

161 Avay PTSA $0 $588

162 Civics Education League $0 $0

163 Coast Range Natural Resources Education Organization $0 $0

164 Corvallis Chinese School, LTD $0 $6,303

165 Diabetes Health Promotion Coalition of Benton County $0 $1,015

166 Family Christian School $0 $6,900

167 Inavale PTO $0 $22,545

168 Kaori Speech and Language, Incorporated $0 $0

169 Kings Valley Charter School $0 $1,540,694

170 League of Women Voters of Corvallis $0 $15,202

171 Linux Fund, Inc. $0 $116,588

172 Mater Research Institute $0 $76

173 Mt. Hood Philosophical Society $0 $5,232

174 Oregon Nanoscience and Microtechnologies Institute $0 $2,345,075

175 Oregon State University Bookstore, Inc. $0 $4,939,536

176 Oregon State University Students Alliance $0 $6,289

177 OSU Educational Foundation, Inc. $0 $0

178 Parents for Education Plus, Inc. $0 $7,483

179 Philomath Public Schools Foundation $0 $13,576

180 Project Graduation of Monroe Union High School Inc. $0 $13,681

181 Racing Performance Mechanic's Club of Linn and Benton $0 $0

182 Rotary Club of Corvallis Scholar Loan Foundation $0 $58

183 SAIC, Incorporated $0 $0

184 Soap Creek Schoolhouse Foundation, The $0 $1,400

185 Valley AIDS Information Network, Inc. $0 $4,861

186 Willamette Chinese School $0 $638

187 Association of United Ways in Oregon $0 $5,553

188 Corvallis Elks Charity Trust $0 $4,710

189 Friends of Benton County Retired Senior Volunteer Program $0 $5,716

190 African Private Enterprise Development Organization $0 $0

191 Alsea Community Effort $0 $10,864

192 Beaver Creek Community Club $0 $190

193 Corvallis Volunteer Fire Department $0 $13,346

194 Kings Valley Area Association $0 $1,379

195 Leadership Corvallis, Inc. $0 $11,220

196 Mountain View Community Works Together, Inc. $0 $0

197 Northwest Association of SBM Instructors $0 $175

198 Northwest Lichenologists, Inc. $0 $29

199 Solid Waste Association of North America (SWANA), Oregon $0 $8,236

200 Wren Community Club, Inc. $0 $18,147

201 Alpine Garden Club $0 $101

202 Alsea Garden Club $0 $486

203 Alsea Valley Alliance $0 $0

204 Council on Forest Engineering $0 $45,711

205 Makindu Water Project 205 $0 $10,135

206 Marys Peak Natural Resources Interpretive Center $0 $500

207 Native Plant Society of Oregon, Corvallis Chapter $0 $1,022

208 South Benton Community Enhancement Association $0 $13,879

209 Sustainable Studies Institute $0 $70,054

210 Terrestrial Ecosystems Research Associates $0 $314,857

211 Madison Avenue Task Force, The $0 $4,565

212 Multnomah County 4-H Leaders' Association $0 $0

213 Ninos Del Lago $0 $12,060

214 Northwest Business Council $0 $0

215 Rebounders, The $0 $4,017

216 Cameron Highlanders of the Northwest $0 $9,364

217 Monroe Junior Dragon Sports Program $0 $15,230

218 Myrtlewood Youth Services, Inc. $0 $0

219 Oregon 4-H Leaders Association, Inc. $0 $8,514

220 Dalmatian Assistance League/DALSAVERS $0 $396

221 McKenzie River Cat Club, Inc. $0 $173

222 Pacific Wild Horse Club $0 $5,660

223 Willamette Valley Rabbit & Cavy Association $0 $1,961

224 NAMI Mid-Valley $0 $12,681

225 Neighborhood Building Corporation $0 $41,206

226 Samaritan Village, Inc $0 $680,766

227 Benton Bowmen, Inc. $0 $11,227

228 Corvallis Cruisers Volkssport Club, Inc. $0 $738

229 Corvallis Indoor Park $0 $6,609

230 Corvallis Rowing Club, Inc. $0 $20,906

231 Cyberspace Snow And Avalanche Center $0 $17,381

232 FC Willamette, Inc. $0 $181,621

233 Independent Community Club $0 $287

234 Kairos Consumer Council $0 $1,722

235 Mid Willamette Fly Fishers $0 $1,704

236 Orange Crush Wrestling Club $0 $5,840

237 Oregon State Wrestling Boosters Club, Inc. $0 $0

238 Summit Community Educational Outreach $0 $1,017

239 Timberhill Harriers Inc. $0 $6,875

240 Valley Futball Club, Inc. $0 $29,212

241 Benton County Legal Defense Corp. $0 $599,420

242 Agricultural Research Foundation $0 $6,131,916

243 Benton County Livestock Association, Inc. $0 $4,088

244 North American Truffling Society, Inc., The $0 $812

245 South Benton County Gleaners $0 $3,651

246 Corvallis Secular Society $0 $1,093

247 Oregon Now Foundation $0 $0

248 PFLAG Corvallis/Albany $0 $5,233

249 Corvallis Mountain Rescue Unit $0 $9,488

250 Mary's Peak Search and Rescue, Inc. $0 $5,584

251 Philomath Volunteer Fire Department, Inc. $0 $12,713

252 FG Syndrome Family Alliance, Inc. $0 $5,392

253 Friends of Marys Peak $0 $0

254 Gifts For A Better World, Inc. $0 $13,292

255 Oregon Now, Inc. $0 $11,978

256 Conservation Planning Institute, Inc., The $0 $22,548

257 North American Alliance of Patients with Neuro-Endocrine $0 $0

258 Corvallis Professional Firefighter's Charity Fund $0 $2,740

259 Oregon Workforce Partnership $0 $115,854

260 Bellfountain Cemetery Association, The $0 $926

261 Consumers Power Charitable Trust $0 $19,678

262 International Institute of Fisheries Economics and Trade, The $0 $91,195

263 Christian City Ministries, Inc. $0 $190

TOTAL FOR THE PERIOD, these organizations: $65,088,952 $647,074,883

Total Contributions, all (263) organizations, this county: $65,088,952

Total Revenue, all organizations this county: $647,074,883