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Impact of the Economic Recession:
  • How safety net nonprofits and their clients are faring

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    A newsletter of the Napa Valley Community Foundation
    December 2008

    First in a series of three special issues

    In March, we reported to you from these pages about how the mortgage crisis was impacting Napa County residents, and the nonprofits they access for services. Since then, the collapse of the housing market has sent shockwaves through the entire economy, and now we are officially in recession.

    Everyone is struggling--working families, seniors living on fixed incomes, businesses of all sizes, nonprofits and government agencies. Even foundations that make grants to support charitable projects are watching the stock market tumble and, as a result, are tightening their belts and reducing their distribution budgets.

    To assess how economic conditions are impacting nonprofits, we held two meetings. The first was a conversation among the major funders of social and human services programs in the Valley, including nonprofit foundations, as well as Napa County's Health and Human Services Agency, which contracts with many nonprofits to provide services to our most vulnerable residents. We discussed how the economy is affecting our ability to make grants and what we were hearing from nonprofits.

    For the second, we convened Executive Directors of nonprofits working in the "safety net" (food and shelter) sector, plus family resource centers, which are the first stop for many struggling families seeking help. In this meeting we talked about how the economy is affecting each nonprofit organization, their clients, and the sector as a whole.

    In three consecutive issues of Community Link, we will present our findings, plus a plan of action to support Napa County's working families. In this first installment, we outline what residents and nonprofits are experiencing.

    Marla Tofle
    Director of Philanthropic Services



    emptywallet How safety net nonprofits and their clients are faring
    Demand for services is up, revenues are down

    Like many other communities, in Napa County, a weak economy has precipitated a number of layoffs (Dey Labs, Queen of the Valley Medical Center, and Calistoga Beverage Co., to name a few), as well as a lack of off-season employment for agriculture workers. More people are making the gut-wrenching choice of whether to pay the rent or the electric bill, whether to eat or fill a prescription. Families that used to be in the middle class are falling into poverty and seeking services in larger numbers--often for the first time.

    As a result, charitable organizations are seeing unprecedented increases in demand for services over a year ago--anywhere from 25 to 350 percent.

    • Applications for food stamps are 20 percent higher.
    • The number of walk-in clients at Calistoga Family Center has doubled, and traffic at Cope Family Center's drop-in assistance clinic is up 50 percent.
    • Napa Valley Food Bank's client roster has increased 46 percent, and The Table (a program of First Presbyterian Church in Napa) is dishing up 150 to 180 hot lunches five days a week--25 percent more than last year.
    • Evictions are up 33 percent county-wide (in part due to the foreclosures), and housing cases at Legal Aid have increased some 350 percent.
    • Family Service of Napa Valley, which provides sliding scale mental health services to adults, including elderly residents, has watched its caseload climb 50 percent.
    • Shelters are seeing more families, as well as people aged 70 and older become homeless, often due to unemployment or fallout from a foreclosure.
    Even though the need is greater than ever, revenues are shrinking:

    • The first round of state budget cuts (with more to come soon), means deficits and layoffs for human services nonprofits that are contracted by the government to provide services to the neediest residents.
    • Donors are feeling the pinch and giving less--local nonprofits are seeing a 10 to 20 percent decline in contributions and fundraising revenues.
    • Emergency aid monies for shelter, food or utilities also were slashed in September's state budget cuts.
    Tomorrow: Napa Valley Community Foundation's plan to help

    Contact the Community Foundation