Nonprofits tied directly to governments fare better in funding

Mar 9, 2010 — Star-News

Shelby Sebens

Mar. 9, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- As local governments pinch pennies and prepare to explain every dollar they spend in this tight economy, it's likely nonprofit agencies will see less cash coming their way.

Faced with shrinking budgets as the economy continues to struggle, government officials say they plan to take a harder look at the funding given to outside agencies.

Brunswick County Commissioner Phil Norris said during a recent budget meeting he would consider not funding nonprofit agencies at all.

In an interview Monday, he scaled back that statement and said the board instead needs to take a harder look at what each agency brings to the county.

"I think we should look at it on a cost-benefit ratio," he said.

This week the county is releasing applications for nonprofits to request funding. Assistant County Manager Steve Stone, who oversees the county committee that makes recommendations to the board on funding nonprofits, said although the commissioners did not set a monetary amount for the nonprofits they alluded to reducing those expenditures.

"We are going to ask him (Stone) to look a little deeper into this," Norris said.

In the current budget, the board of commissioners approved reduced spending for nonprofits, giving them $501,000, which was $54,200 less than the year before. The nonprofit agencies had requested $885,685.

"There wasn't enough money to go around. That may be the case this year," Norris said.

Council members in Wilmington, who have said a tax increase might be necessary to make up for declining revenues, are also faced with how much to give to nonprofits.

Council members have mixed feelings about a $100,000 funding request from the Cameron Art Museum. Councilman Earl Sheridan recently told the StarNews he was leaning against giving the museum money but needed more information on its financial situation before deciding.

Pender County officials also reduced funding in this current budget for nonprofits and are looking at a tight year again.

"I think that will certainly be on the table again this year," Rick Benton, county manager, said of cutting nonprofit funding.

Exceptions to the rule

How much money nonprofit agencies receive from local governments will depend on what they bring to the table.

"All of them have to be looked at on a case-by-case, individual basis," Norris said.

In Brunswick County, most nonprofit agencies will apply for funding and be evaluated by a committee of Stone, the finance director and other department heads. The committee then comes up with a recommendation that is part of the county manager's recommended budget.

The agencies in the past have also had the opportunity to address the board about their requests.

But some agencies will be the exception to the rule as they carry more weight for the county. Brunswick County Senior Resources Inc. and the Economic Development Commission might function as arms of the county government, have offices in the government complex and even be a part of the county's overall budget, but they are technically nonprofit agencies.

BSRI provides the county with all its senior resources, from running the activity centers to Meals on Wheels.

"The mission that BSRI has, it's really a mandated service for the county," said Jim Russell, president and CEO of the program.

The senior service organization formed almost 10 years ago when a senior citizen task force in the county wanted its own organization. So the county dissolved its senior citizens division in the Department of Social Services.

Being a nonprofit makes it easier to get grant funding and to solicit donations from the public, Stone said.

The bylaws also require that 51 percent of BSRI's board be senior citizens.

"It is very much a senior-guided organization," he said.

Stone said several area counties have similar set-ups where nonprofit agencies serve practically as departments of the county.

When forming BSRI, Brunswick looked to Pender County's Pender Adult Services Inc., Stone said.

Any budget cuts could ultimately come down to how much service an agency gives residents. But the value of each agency will also be in the eye of the sometimes divided elected officials.

Councilwoman Laura Padgett, for example, has said of funding the Cameron museum that it would be "perilous" to risk losing cultural attractions.

Shelby Sebens: 343-2076

On Twitter.com: @ShelbySebens

Newstex ID: KRTB-0217-42717799