A long and growing food line at a neighborhood pantry

As a result of the recent economic downturn, the Novato Youth Center, one of Marin County’s largest childcare centers, saw a growing number of parents laid off or working reduced hours,increasing demand for its subsidized child-care slots and food program. United Way responded with a $10,000 Road to Recovery grant, which will enable the center to serve another 57,000 meals to children.

“United Way’s grant will help us ensure that the kids at our center get the nutritious meals they need to thrive in school and at play,” said Cheryl Paddack, the Center’s executive director. “At the same time, we’re relieving parents of the stress and economic strain of packing daily meals for their children.”

Adapting and expanding services to meet changing needs is a sign of the times for Bay Area nonprofits. Almost 32% of local nonprofits said they have added new services to address rising client needs, according to United Way’s 2009 Nonprofit Pulse Survey, conducted in April. Of those organizations, 44% now offer food, while 38% provide clothing and household-item support, and 35% offer employment assistance.

The weak economy has placed even more importance on collaboration among nonprofits, fostering creative solutions and partnerships: 26% said they have collaborated with another nonprofit during the last six months to provide services. “Nonprofits are working together more creatively and collaboratively, as we are increasingly called upon to do more with less,” says United Way of the Bay Area CEO, Anne Wilson. “This renewed energy around collaboration and partnership might be one positive emerging from these lean times.” She added, “While the findings from our survey are sobering, they motivate us to work even harder to find the most efficient and effective ways to serve.”

Nonprofit Challenges a snapshot of conditions at Bay Area nonprofits:

• 33% of Bay Area nonprofits are concerned they may cease operations within the next year.

• 34% report they have two or fewer months of operating expenses in reserves.

• 42% report that revenue was down in 2008, with 27% experiencing a revenue drop greater than 10%.

• 44% plan to dedicate more staff time to fundraising, meaning employees will have less time to deliver services.

• 77% expect service demand to increase in 2009, with 45% expecting a “significant” increase.

• 20% have laid-off staff during the last six months. Of those organizations,

• 37% are considering further lay-offs.