A majority of human services organizations in New York City have seen public and private funding shrink substantially during the economic recession, resulting in layoffs and credit and cash flow problems, according to a report released September 9 by the Human Services Council (HSC) and Baruch College’s School of Public Affairs.
The report, titled “The Helpers Need Help: New York City’s Nonprofit Human Services Organizations Persevering in Uncertain Times,” is the result of a survey of 244 executive directors of human services organizations across the New York metropolitan area.
More than 60 percent of surveyed organizations reported cuts to their public funding, with more than 20 percent of those claiming to have received cuts beyond 20 percent. Moreover, 70 percent of surveyed nonprofits said they rely on public funding for more than 40 percent of their operating budgets.
Likewise, 73 percent of organizations said their private funding streams had dwindled.
As a result of the cuts, 53 percent of respondents reported laying off staff in the past year, with eight percent of them reporting layoffs of more than 20 workers.
While more than 62 percent of the social service leaders who participated in the survey said their organizations had not cut programs or reduced services, many expressed concern about more severe resource reductions in the future.
“On a broad level, this is the worst scenario for human services organizations,” HSC executive director Michael Stoller said in a news release, noting that despite a drop in funding, “the number of human service clients keeps increasing as poverty levels go up…”
Jack Krauskopf, director of the Center for Nonprofit Strategy Management, which houses Baruch’s School of Public Affairs, said in the release that he hopes the survey results “help make an impact on public policymaking, philanthropic strategies and personal charity…”
In the end, Krauskopf continued, the goal of the study is to facilitate and streamline the process of delivering vital resources to those in need.
