United Way survey shows hard times for PA nonprofits

Posted by on January 29, 2012

United Way survey shows hard times for PA nonprofits

A survey conducted by United Way of Pennsylvania confirms that the stagnant economy is driving up demand for help from nonprofits just at the time as government support for social service programs is declining.

Agencies report that in the last year they have laid off staff and reduced hours while waiting lists for their services have grown, according to the survey.

The survey found that 69 percent of 800 agencies surveyed received funding cuts last year, and 80 percent reported increased demand for assistance. Many agencies’ funding shrank for the fifth straight year.

More than half the agencies said they had laid off workers.

“We need to remember budget cuts don’t happen in a vacuum,” said Tony Ross, president of the United Way of Pennsylvania. “Significant reductions in funding have broken important pieces of the safety net.”

“It’s a vicious cycle,” Ross told the Philadelphia Inquirer.  He mentioned examples such as the $10 million Homeowner Emergency Mortgage Assistance program that was zeroed out, and an emergency home-repair program that allowed the elderly to stay in their homes that was also cut.

“The loss of those funds is causing more people going into shelter programs and nursing homes,” he said.

Funding for the Human Services Development Fund, which has historically supported social service programs in suburban and rural Pennsylvania counties, has plummeted from $42 million in 2003 to $14 million 2011-12.

Jill Michal, president of United Way of Southeastern Pennsylvania, said that agencies were already operating on a shoestring.  “Everybody understands the need for a balanced budget,” she said. “But you have to balance that with quality of life and the need to invest in what works.”