Arizona Funders Respond to the Economic Crisis

Arizona Grantmakers Forum is working to compile resources, tools, opinions and ideas to help the philanthropy and nonprofit community be better informed when responding to the current economic crisis.  For other current state and national news related to philanthropy, click here.

Click on the following links for more information:

Impact of Recession on Arizona Nonprofits

Piper Trust Announces $1 Million in Community Relief Grants for Maricopa County Arts and Culture Organizations
Press Release, 11/13/09
The trustees of Virginia G. Piper Charitable Trust announced today a $1 million fund for arts and culture organizations strapped by the effects of the economy. Thirty-seven visual and performing arts and culture organizations, all grantees that have won competitive Piper grants in the past, will receive one-time unrestricted grants.

Arizona Forum on the Impact of the Federal Stimulus Funding (ARRA) on Nonprofits 
On Friday, April 17, Arizona Grantmakers Forum, along with the Alliance of Arizona Nonprofits, Arizona Community Foundation, Community Foundation for Southern Arizona, Frontera Asset Building Network, and St. Joseph's Hospital and Medical Center, presented a forum for nonprofits and foundations to better understand how federal economic stimulus funding under the American Recovery and Reinvestment Act (ARRA) is unfolding at national, state and local levels.  The Forum was beamed via the web to 15 remote sites, including public sites in Yuma, Winkelman, Douglas, Tucson, Prescott, Flagstaff and Apache Junction. (Posted 4/27/09)

State-by-state Review of Recovery and Reinvestment Act (Posted 3/9/09)

"Finding a Way"
From February 3 through 13, the Alliance of Arizona Nonprofits queried nonprofits across the state about the effects of the recession on their operations.  The conclusion of "Finding a Way," demonstrates that while revenues are down and services are affected, Arizona nonprofits are being creative about finding a way to keep essential services afloat during the recession. (Posted 3/6/09)

/Common/Files/AZ_Economic_Crisis_Stats.pdf Impact of the Recession on Arizona Nonprofits

Association of Arizona Food Banks Reports on Impact of Budget Reductions
-- The Arizona Food Buying Cooperative Certificate Program has been discontinued for the remainder of this fiscal year (now through June). Used by approximately 7,000 families each year, this voucher program was an important tool on the path to food security.
-- The annual Statewide Conference on Hunger has been cancelled.
-- $61,000 used for food purchases was cut immediately, leaving us with little time to seek alternative funding needed to purchase food for the food banks for the remainder of this fiscal year. This is a loss of an estimated 549,000 lbs of food.
-- Member food banks already experienced a 47.9% increase in demand for their services in the fourth quarter of 2008, before these cuts were announced.
(Posted 3/5/09)

AGF June Program
On June 26th, AGF presented a panel of four nonprofit community leaders who discussed the current economic state of nonprofit organizations in Arizona. Panel members included Patricia Lewis, ASU Lodestar Center for Philanthropy and Nonprofit Innovation; Patrick McWhorter, Alliance of Arizona Nonprofits; Dana Naimark, Children's Action Alliance; and Brian Spicker, Valley of the Sun United Way.
Click here to link to the 2008 Governor's Survey of Arizona Nonprofit and Faith-based Communities.
AGF Members may access the program video by logging in and going to the Resources page to link to Program Videos.

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Response by Arizona Funders

Ten Arizona funding organizations came together in early January 2009 to create the Changing Face of Poverty Campaign.  The participating organizations contributed a total of $1.385 million to match donor gifts dollar for dollar.  The campaign engaged in a month long media effort to raise community awareness of the poverty facing many Arizonans and to solicit contributions. With the additional dollars raised from the general public, these funders were able to award $1.6 million to 45 human service agencies in late May, 2009.  (Posted 9/1/09)

Pulliam awards $1.5 Million New Grants to 22 Arizona Nonprofit Organizations
The Nina Mason Pulliam Charitable Trust announced $1,475,000 in grants to 22 Arizona nonprofit organizations Wednesday, July 15. Many of the Trust’s grantees are agencies that are struggling to maintain programs because of major cutbacks in state fee-for-service contracts, grants and downturns in their annual giving campaigns. (July 2009)

Pulliam Charitable Trust Awards $2.6 million in Grants to Arizona Organizations - Philanthropy News Digest, (4/2/09)

Campaign offers hope to the many hit by downturn - The Arizona Republic (4/1/09)

Businesses, nonprofits lead effort to raise emergency funds - Phoenix Business Journal (4/1/09)

Nina Mason Pulliam Charitable Trust Responds to Troubled Economy
Nina Mason Pulliam Charitable Trust has made changes to its grant programs in response to the trouble economy. Executives at the Phoenix-based non-profit said it is amending a decade-old policy and is putting a moratorium on applications from organizations seeking funds for buildings or endowments. Instead, leaders will focus on grants to human-service organizations that provide food, clothing and shelter to at-risk citizens. (Posted 3/25/09)

Jewish Community Foundation Awards $50,000 to Support Safety Net Programs for Jewish Individuals and Families in Need
In January, the leadership of the Jewish Community Foundation approved the implementation of the Economic Crisis Response Program, which established a special funding stream to support organizations offering direct stop-gap and safety net services to Jewish people in need within the Greater Phoenix area. This $100,000 initiative is an unprecedented undertaking for the JCF that will funnel much needed grant dollars into the local Jewish community as a direct response to the ever-increasing demand for assistance in meeting basic needs, including utility and rent payments, medical expenses, childcare costs and food purchase. Phase One grantees are Jewish Family & Children's Service, Jewish Free Loan, and the ECE Centers of the Barness Family and Valley of the Sun Jewish Community Centers. Phase Two grants of this invitation-only funding program will be awarded before the end of the year. (Posted 3/25/09)

Arizona Funder Explore Ways to Most Effectively Address Economic Crisis Posted (2/24/09)

In January, the Dorrance Family Foundation granted basic needs funding for the following organizations:

  • Arizona Community Foundation - $25,000 was granted to provide funding to nonprofits in rural Arizona, specifically for programs addressing basic needs such as food, shelter, and clothing.
  • Association of Arizona Food Banks - $50,000 was granted to distribute food to food banks throughout Arizona
  • Central Arizona Shelter Services (CASS) - $50,000 was granted for emergency funding to help with costs of sheltering the homeless
  • Human Services Campus (HSC) - $35,000 was granted for general operations to assist all 15 agencies on campus
  • Salvation Army - $50,000 was granted for the Emergency Assistance Program which provides assistance for food, utility payments, eviction prevention, gas cards, bus tickets, back-to-school and hygiene products
  • YWCA - $35,000 was granted to provide delivery of meals to homebound elderly, families, and people with disabilities (Posted 2/20/09)
/Common/Files/2008_Economic_Impact_Survey-AZ.pdf 2008 Economic Impact Survey
In November of 2008, AGF surveyed its members to find out what impact the recession would have on their 2009 grantmaking.  Click the link above to view a PDF version of the results.

The Community Foundation for Southern Arizona established an Economic Relief and Stability Fund (ERSF) in December 2008 to support nonprofit organizations helping people negatively impacted by the economic crisis. 100% of dollars in the ERSF will be granted through the 2009 Community Investment Grant process. Through the generosity of CFSOAZ fund holders as well as community donors, the Community Foundation plans to have a total of at least $500,000 available to grant for 2009. This year's process will take place between February and May.

Piper Trust Balances Strategic and Emergency Grantmaking
The Virginia G. Piper Charitable Trust has awarded grants totaling $3.4 million, supporting both strategic projects in arts and culture, children and education and emergency grants providing food, shelter and medical services. The emergency grants are part of the a $1 million Community Relief Grant program that Piper Trust launched last fall to support organizations that serve Maricopa County residents most in need. (Posted January 22, 2009)

Piper Trust Announces Second Round of Community Relief Grants for Maricopa County Nonprofits
The Virginia G. Piper Charitable Trust today announced a second group of Community Relief Grants, part of a $1 million commitment to aid Maricopa County nonprofits providing direct assistance to the community. 

Arizona Community Foundation to Match Donations for Basic Needs
The Arizona Community Foundation will match donations to help provide Arizonans with shelter, heat, food, clothing, and counseling as the current economic downturn puts more individuals and families in distress.  ACF will match contributions to its Basic Needs Fund dollar for dollar, up to $50,000.  Gifts and the match will go to qualified nonprofits providing for these basic needs throughout Arizona, with preference given to efficient, strategic collaborations among nonprofit partners.

2nd Trust Shifts Focus to Area's Urgent Needs
Eugene Scott, The Arizona Republic
Nina Mason Pulliam Charitable Trust will not be accepting capital campaign grant applications in 2009, and will focus funds toward the Valley's emergency needs instead.
Posted 11/23/08

Piper Trust Provides Community Relief Grants
The Virginia G. Piper Charitable Trust has committed to providing $1 million to community relief grants directed at Maricopa County nonprofits that provide direct assistance to the community. This funding will be directed toward especially vulnerable populations including families who are working to keep their homes, children, and older adults. Posted 10/28/08

Piper Trust has created a website entitled Greater Phoenix Community Relief to direct donors to nonprofits that work to improve the quality of life in Maricopa County.  Click here for more information.

Southern Arizona Grantmakers Respond to Economic Crisis
Steve Alley, President/CEO of the Community Foundation for Southern Arizona blogs about "A Conversation with Nonprofit Organizations about the Economic Crisis." Posted 10/27/08

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Strategies for Funders and Advice for Grantees

Courtesy of Donors Forum:

Strategies for Funders

  • Be transparent about your grantmaking priorities and levels so that nonprofits can plan accordingly. Give grantees ample notice if a grant will be an exit grant, or the last one the grantee can expect.
  • Fund operating expenses, and support the efforts of nonprofits to establish an operating reserve. In this economic climate, grantmakers should shore up their investments in current grantees with less restrictive and more multi-year grants. Grantees don't have a lot of time or money these days to apply for funding, so try to offer a faster turnaround, less formal process, and operating support.
  • Consider a long-term strategy of awarding grants based on the previous 12 trading quarters (a "trailing average") to create a buffer against a changing economy.
  • Support capacity-building efforts so that nonprofits can develop healthy infrastructure. Offer tools and information on developing a planned giving program. Funders can also give grants that can be used to generate matching funds, whether from a new or existing pool of individual donors.
  • Consider giving priority to organizations that primarily serve low-income communities and to organizations that are meeting unique or very basic needs, and which, without grant support, would close their doors.
  • Grantors are also encouraging and facilitating mergers and partnerships that help grantees reduce expenses. The Chicago Community Trust, along with The United Way of Metropolitan Chicago, recently committed to funding a partnership of nine large human service agencies that will consolidate back-office operations.
  • Continue to support and conduct advocacy.

    Advice for Your Grantees
  • Have a development plan, and make sure it includes contingency plans for lean times. Avoid large investment in fixed assets and infrastructure, such as a building purchase, new hires, or expansion of services. If growth or retrenchment is likely, nonprofits need to work with funders and board to build a cushion to allow flexibility and course corrections.
  • Develop a diverse revenue stream and explore new revenue possibilities. If a period of inflation ensues, the best nonprofit strategy will be to push toward earned income, which is a much more reliable source - and a potentially richer source - than foundations or corporations.
  • Try not to cut development budget or activities. 
  • Stay in touch with donors: remind them of the organizational mission, and why it's important to keep funding in uncertain economic times. For instance, social service organizations can experience cuts in government funding and a longer reimbursement period; they also typically experience a greater demand for services during economic downturns.
  • Two simple steps nonprofits can take to lessen the likelihood of reduced giving by current individual donors are sending out pledge reminder cards or emails, and offering to renegotiate a longer pledge payout period. It's also important to remind individual donors to check with their employers about a matching gifts program.
  • Remain diligent in practicing good governance and adhering to best practices.
  • Cut expenses: take advantage of work-study employees from local universities to assist with clerical and technology work, ask staff to carefully watch expenses and cut out unnecessary spending, or look into sharing office space, resources, or back-office functions with other organizations.
  • Ask current board members for additional contributions during difficult times, and reach out to new board or committee members who can bring in resources.


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    Additional Resources for Funders

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    Resources for Nonprofits

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    ARRA Resources

    • /Common/Files/ARRA and Texas Funder Response.pdf ARRA and Texas Funder Response - A report produced by The Meadows Foundation and The Boone Family Foundation to help funders better understand how the federal stimulus package will affect nonprofits in their state and how they can be involved. (Posted 6/10/09)
    • Recovery.org is a new website - run independently from the federal government's site, Recovery.gov - that tracks ARRA spending. The website enables you to view all the active projects in your state, and further narrow the results by city, by county, by type of project, or by project cost. The site also provides unique public opinion insights through its visitor comments section for each project.
    • /Common/Files/ARRA2009-Special_Bulletin.pdfSpecial Bulletin - The American Recovery and Reinvestment Act of 2009: Act Appropriations Beneficial to the Nonprofit Sector and Key Resources for Organizations to Approach and Access Funding Sources - Center on Philanthropy at Indiana University (Posted 4/28/09)
    • Arizona Forum on the Impact of the Federal Stimulus Funding (ARRA) on Nonprofits (Posted 4/27/09)
    • State-by-state Review of Recovery and Reinvestment Act (Posted 3/9/09)
    • The National Council of Nonprofits has just issued five special reports on the new American Recovery and Reinvestment Act (commonly known as the stimulus act) and what it means for community-based organizations. (Updated 3/5/09)
    • www.Recovery.gov: A new government website that answers Frequently Asked Questions, provides a timeline on when various events are to occur, and is the official "go to" site for the public to keep track of how the money is spent.  (Posted 2/26/09)
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    • Current Philanthropy News 
    Foundations Giving to Help Foreclosure Crisis
    Click here for current philanthropy news.