by Max Marbut
Staff Writer
Addressing Tuesday’s meeting of the City’s Public Service Grant Council, Jessie ball duPont Fund President Sherry Magill began her remarks by pointing out she understands the City Council has only about $2.5 million for distribution to non-arts-based public service organizations, then added, “And I fear that will shrink. The Jessie Ball duPont Fund gives away $14 million a year but even with that pool of money, sometimes it’s not enough. The needs are so severe and growing rapidly due to the decline in the (financial) markets and the deepening recession.”
The council is comprised of seven members and is chaired by former City Council President Alberta Hipps. The group is responsible for distributing the City’s annual Public Service Grant Appropriation. It reviews and evaluates applications submitted by local organizations seeking City funding for projects and conducts on-site evaluations.
In order to qualify for a City grant, an organization must have been in operation a minimum of three years, be a 501(c)(3) organization, a Florida not-for-profit corporation or a governmental agency. In addition grant recipients must serve what has been identified by legislation as a “Priority Population,” including homeless and low income persons and families, victims of abuse and neglect, adults with physical, mental or behavioral disorders or residents of neighborhoods at a high risk of crime. Public Service Grants may also be appropriated for improvements to the quality of life through cultural activities.
A panel of executives from three philanthropies was joined by Rena Coughlin, executive director of the Nonprofit Center of Northeast Florida, an organization that serves as an advocate for the nonprofit community.
“Our mission is to connect with the funding community and remove the adversarial relationship between organizations who need funds and those who award funds,” said Coughlin.
The group was invited to the meeting to give the council an overview of the current state of private non-profit organizations and the state of organizations that fund them. Under the current conditions, the City will be in a similar situation as the private funding sources. More organizations are likely to be seeking appropriations, but it’s likely less money will be available than in years past.
Magill said the 600 organizations that receive money from the fund have seen their assets decline by one-third due to the devaluation of the stock market and added, “We have lost $100 million ourselves. Assets are declining and so is public support. (The State of) Florida went from $72 billion in public service appropriations last year to a projected $61 billion this year. That’s a swing of more than $10 billion in two years and it’s going to affect education and children’s programs, people who don’t vote. That loss of dollars will not be made up by private money.”
The Community Foundation of Jacksonville was founded in 1964 and has $125 million is assets. In 45 years, it has awarded $140 million in grants, said its Vice President for Grantmaking, Cheryl Riddick.
Last year the foundation’s grants total was $16 million, with $15 million coming from what Riddick called “donor advised funds.” In other words the donors have specified what kinds of programs their donations can fund, leaving the foundation with $1 million of discretionary grants.
“The need is great and resources are few,” she said and then advised, “We must qualify organizations and their purpose. Grantmaking is a thoughtful process and we have to make careful decisions with the resources we have available.”
The depressed stock market and its effect on the economy has also impacted the United Way of Northeast Florida, one of the oldest philanthropies in Jacksonville. In operation for the past 85 years, the United Way currently funds 90 programs at 70 agencies, said Melanie Patz, vice president for community impact.
She said the United Way is supported by a combination of funding sources including national grants and contributions made by federal, state and local government employees. The United Way spends 11.5 percent of its budget on administrative and operations costs and about 8 percent of pledges are “uncollectible.”
“That leaves about $10 million a year for programs,” said Patz.
After listening to the comments from the executives, Grant Council member Ron Mallet commented that he thinks it’s time for non-profit organizations to change their mindset when it comes to funding sources.
“Organizations are going to have to find ways to generate revenue in order to not be so dependent on federal, state and local funds.”
Coughlin replied it may be more realistic for organizations to improve their operations and efficiencies rather than try to come up with ways to generate revenue that is outside their mission. She also pointed out that “fragile organizations” are not likely to prosper or even survive “and we have to be prepared for that to happen.”
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