Important note: Information in this article was accurate in 2009. The state of the art may have changed since the publication date.
San Francisco Chronicle - April 29, 2009
Meredith May, Chronicle Staff Writer
A survey of 326 charities conducted by the San Francisco Foundation found that the majority are buckling under the wave of newly unemployed seeking aid, and the triple-threat of state funding cuts, smaller foundation grants and an alarming drop-off in donations.
"I really see this as the tip of the iceberg," said Sandra Hernandez, chief executive officer of the San Francisco Foundation.
"Nonprofit executives are starting to be courageous and open up the conversation about whether they should be running a program or giving it to another agency," she said.
The Bay Area is home to 25,000 nonprofits - one of the highest concentrations in the nation. There are 7,000 in San Francisco alone, although nearly half are small, with budgets below $25,000. The combined budgets of all the region's nonprofits account for 14 percent of the Bay Area's gross national product - twice the national average.
Downsizing has become inevitable in today's economy.
This month, the San Francisco Foundation set aside $1 million in emergency funding to help nonprofits restructure.
Of that, $600,000 was divided equally among 20 nonprofits that provide food and shelter to people about to slip through the safety net.
Another $150,000 was put into a revolving loan fund for charities facing short-term cash flow problems caused by delayed state grants.
The remainder, $250,000, was used to create a "Nonprofit Transition Fund," to help charities pay for lawyers, planners and facilities managers to help them merge or close.
So far, six charities - providing AIDS services, summer youth programs, arts and family services - have applied for transition fund grants, Hernandez said.
"Everyone is trying to figure out how to do more with less to preserve the frontline services," Hernandez said.
Tom Nolan, executive director of Project Open Hand in San Francisco, is trying to figure out how to keep delivering 2,600 warm meals a day to seniors and people with HIV, given a projected $750,000 drop in funding in the new fiscal year that starts in July.
His agency was among the 20 that received a $30,000 safety-net grant from the San Francisco Foundation.
"We work closely with Glide Memorial, St. Anthony's and the San Francisco Food Bank, and we're trying to buy together in bulk and share kitchen space, whatever we can to consolidate and save money," he said.
E-mail Meredith May at mmay@sfchronicle.com.
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