Nonprofits enter critical holiday fundraising season with fewer resources, wary of 2021

Three Sparrow's Nest staff members this past weekend began coring and peeling close to 10,000 apples.

The apples would be used to bake roughly 1,000 pies this week as part of the Wappingers Falls nonprofit's annual fundraiser.

Last year, Sparrow's Nest had a kitchen full of volunteers to help with the sorting, peeling, mixing and pouring. This year, there would only be about eight people in the kitchen total, including two volunteers, in order to maintain proper distancing amid COVID-19. 

But still the organization, which provides meals for families dealing with cancer, was grateful for what it had: The apples had been donated from local farms, and community members had lined up to preorder the pies.

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"We're really lucky. We've had so many people just kind of walk through the door and saying, 'We know you're having a hard year, we want to help you,'" said Jean Marie Trick, a staff member, who is also a cancer-survivor herself. 

Not every nonprofit has been as as lucky more than eight months into a pandemic that is hitting the region with a second wave this fall.

Charitable organizations have watched their reserves shrink as they work to meet the needs of a growing population of people who may be unemployed or struggling to make ends meet, and businesses that face uncertain futures.

That will make the next few weeks — the holiday season and a peak fundraising time for nonprofits — even more important than most years. What organizations raise now may help keep them in operation for a few more months into 2021.

Organizations such as Sparrow's Nest are planning promotional campaigns to attract donor attention, starting on Giving Tuesday on Dec. 1st. They are also putting a virtual twist on visits with Santa Claus by selling tickets to talk with Kris Kringle over the phone. 

And because volunteerism has dropped due to COVID-19, some organizations are even providing ways to volunteer virtually, doing such things as writing letters to seniors, some of whom have been isolated for months.

A little more than half the nonprofits nationwide expect a funding shortfall this year, and about 65% intend to spend down their reserves, according to Charity Navigator, an online resource for finding charities. About 48% have canceled servicing one of their primary programs and 77% have hand to cancel fundraising events. 

Nonprofits are often seen as lifelines to vulnerable populations who struggling to survive. The need has snowballed during the pandemic, as more people are having difficulty putting food on the table, finding childcare, or connecting with mental health services.

Looming over all of their efforts is the fear of an intensifying coronavirus surge may force businesses to close once again. 

As they prepare to enter a new year, many nonprofits are preparing budgets based on worst-case scenarios in which expenses are slashed and staff is let go, and seeking creative ways to raise money to stay afloat.

In response, the Hudson Valley Funders Network, formed in the spring amid the pandemic and composed of charitable organizations, has partnered with the New York Council of Nonprofits, to help the nonprofits create realistic and sustainable strategies.

"Philanthropy has an opportunity here to make a difference in a targeted way. They can't fund every service, but they can help people think through strategically how they can survive and be smart about things," said Doug Sauer, chief executive officer at the New York Council of Nonprofits.

Need exacerbated by pandemic

Even before the pandemic hit, many within the Hudson Valley were struggling to stay above the poverty line, or at least make ends meet. 

A report published by the United Way in August, using statistics gathered in 2018, showed roughly 38% of Hudson Valley households and 45% of households across the state were not making enough money to cover their basic needs. 

The United Way of the Dutchess-Orange Region has seen 50% more hunger-related needs since March, an uptick in domestic violence and is wary of a possible "tsunami" of eviction to eventually overwhelm the region in the coming months when state restrictions barring evictions in most cases ends.

The winter has always been a time of increased need, due to rising heating costs when families may be living on fixed income. And this year, those short-term retail job that some depend on for extra income, may not exist due to COVID-19. 

"We are seeing vulnerable families facing devastating crises and additional families seeking help for the first time," said Melissa Clark, senior director of community impact for the United Way of the Dutchess-Orange Region.

The organization has made housing and food funding a priority in the year to come. They raised close to $200,000 earlier this year and helped about 90,000 people with food, personal protective equipment and other needs. 

Organizations stretched thinner

Sparrow's Nest's expenses increased with the pandemic. While the number of families touched by cancer it attempted to feed did not increase, the help those families needed did.

The nonprofit normally delivers trays of meals to about 80 families, such as casseroles, vegetables and desserts. However, because members of those households were more susceptible to the virus in many cases, in some cases family members stopped making their regular visits to grocery stores, and some left their jobs for fear of bringing the virus home.

So, Sparrow's Nest tacked on another delivery, this time with bread, milk and other staple food items, so the families could make to through the weekend. They expect they'll need to start that delivery service again this winter, said Krista Jones, the nonprofit's executive director. 

"Even though our donations were actually down, our expenses were up because we were trying to feed people more than two meals that we normally provide every week," Jones said, adding that they were a "lifeline" for their families. 

Jones noted problems donors experience trickle down to nonprofits.

"Our local restaurants that normally give us extra food or gift cards are struggling," she said. "We’re in a position where it’s really hard for us to ask the business community to sponsor an event when they themselves are struggling."

That many nonprofits are surviving only by spending down reserves is only part of the problem. With fewer volunteers, they're also losing resources that would be provided for free.

"With the value of a volunteer hour currently estimated to be $27.20, the sharp decrease in volunteerism caused by COVID-19 represents an impact of millions of dollars across the nonprofit community — a devastating blow for many organizations, stated a report from Fidelity Charitable, an organization that advises donors on how to maximize their donations. 

Virtual volunteering is one way to combat this. Clark said the United Way recently organized Zoom card writing parties to write cards for local socially isolated older adults.

A lifeline for nonprofits

The Hudson Valley Funders Network is a group of grantmaking foundations that came together to find a way to help the nonprofits in the region from going under. The network partnered with the New York Council of Nonprofits to create one-stop shop of technical resources that would help nonprofits strengthen their infrastructures for what's to come ahead. 

“Nonprofits have demonstrated their resilience and creativity in challenging times throughout history, often with scarce resources. To ensure essential programs and services can be preserved and sustained, organizations must have the capacity to adapt strategically in times of significant change,” Sauer said.

The nonprofits council conducted a survey of nonprofits in the region during July and found that they needed help with fundraising, planning, finance, operations and technology, organizational leadership, and marketing.

The survey also found that nonprofits providing education and childcare-related services were among those organizations most at risk of failing.

The result of the survey was the creation of a website, hudsonvalleyfundersnetwork.org, which provides resources on building a better organization, dealing with staffing challenges, online fundraising, providing strategies to manage finances and facilitate mergers to help with sustainability.

"It may be smart for some of them to close earlier, which is a very hard when a lot of need is coming to your door for services," Sauer said. "Rather than spending all your resources trying to meet the need to the point where you're not just closing the business, but going out of business."

The survey found that about 30% of the nonprofits were likely to go out of business and 79% experienced revenue shortfalls after the pandemic started in March. But, Sauer said, going out of business may result in mergers and the consolidating of resources that could make for stronger organizational models and organizations that can reach a broader audience.

What lies ahead

For many charitable organizations, this holiday season may be challenging, but what comes next year may determine whether or not they can survive. Many nonprofits are budgeting for what could be another unprecedented year with no real end in sight for the virus.

“I think 2021 is going to tell a different story, so we’re really trying to get ready and just cut as much as we can, because we’re projecting that income is not going to be nearly as much as what we bring in year after year,” said Sparrow's Nest's Jones

The nonprofit has already cut expenses this year and is projecting to take a one-third cut in funding next year.

They've been lucky with local farms, which have donated thousands of dollars worth of produce. But, they've also have to cut most of their drivers and can't allow for volunteers for the most part due to COVID-19. 

If the need arises, both Jones and her staff of three are willing to take pay cuts in order to continue their work feeding families. 

“You can’t really plan for this or budget for this. I am giving worst-case-scenario numbers so that I know what I need to do to survive,” Jones said. 

And for some nonprofits that worst case scenario might become a reality. Sauer suggests nonprofits plan in three-to-six-month chunks of time rather than trying to anticipate what will happen over the course of the year.

Charitable organizations can no longer depend on business and corporate sponsorships, as many local businesses are also struggling to make ends meet.

Sparrow's Nest had to cancel an annual fundraiser that brings in roughly $300,000, and pivot to raising funds online in creative ways. During this holiday season, they are selling tickets for a phone call with Santa Claus.

"We're just trying to be as creative as we can just, you know, to get through next year." Jones said. "We'll be okay, I think, you know, it all depends on what the next 11 months looks like."

Holiday Helping Hand

For thousands of Dutchess County residents, the holiday season can be one of uncertainty, due to food insecurity, unemployment, bills or other financial stress. For some, simply providing their children with a gift is an annual strain.

That's where Holiday Helping Hand had provided assistance for nearly four decades. The program, a collaboration between the Poughkeepsie Journal and United Way of the Dutchess-Orange Region, provides funds to community organizations that in turn host events such as gift card giveaways, breakfasts with Santa and holiday dinners.

Each year, the funds raised go toward the following holiday season's programs. That means funds donated last year are enabling programs to function this year despite the ongoing pandemic. However, it also means your generosity is needed now to provide for a merry holiday season in 2021.

Last year's campaign raised nearly $29,000, which is being used to fund 28 programs this season.

To donate, visit www.uwdor.org/hhh or mail a check to Holiday Helping Hand, United Way of the Dutchess-Orange Region, 75 Market St., Poughkeepsie, NY 12601. Checks should be made payable to Holiday Helping Hand. All donations go directly to Dutchess County organizations to serve those in need.

Saba Ali: Sali1@poughkeepsiejournal.com: 845-451--4518