To see a video of charity officials describing their budget situation, click here.
With the state budget running tight and a national loss of wealth, nonprofit organizations and charities are left to pick up the pieces – with a shrinking budget of their own.
Mike Manning, president and CEO of the Greater Baton Rouge Food Bank, said total funding for the state’s five food banks was cut from $5 million to $500,000 for the next fiscal year despite the food banks asking the state for $18 million.  
Manning said the food banks, representing Shreveport, Monroe, Alexandria, New Orleans and Baton Rouge, collectively asked for $15 million during the last two years, but needed more funding this year after seeing a 20 percent increase in demand for the first half of 2009.
Manning said while the Baton Rouge Food Bank’s cut of the $5 million was $775,000 for the past two years, they will only receive $100,000 at most next year.
“It’s going to be a dramatic reduction in the amount food we can purchase,” he said.
“Especially at a time when we’re seeing an increase in need because of the economic downturn.”
Manning said the recession is causing more people to seek emergency assistance as more jobs are cut. He said more people are looking for help in periods between jobs.
“The reality is more people are now living paycheck to paycheck,” he said. “They can only go a couple of missed paychecks before they start to hurt.”
Michael Acaldo, president and CEO of St. Vincent de Paul, a charity organization, said larger contributions in the $10,000 to $25,000 range have decreased since the recession started, though smaller contributions – $25 to $100 – have remained constant.
Acaldo said St. Vincent de Paul does not receive state funding, though it does receive federal funds, which have remained steady because of the stimulus package. He said federal funds accounted for approximately $1 million of their $9 million budget last year.
“Though we always appreciate the smaller gifts, missing out on some of the larger gifts and contributions has created hardships,” he said.
Acaldo said St. Vincent de Paul is working harder to find funding sources and is managing their budget more tightly, but he said they have not yet had to make any tough decisions.
“So much wealth has been lost because of the stock markets,” he said. “Supporters tell me they can’t give money they no longer have.”
Manning said the food bank’s contributions have not decreased, but they are hoping to receive more contributions this year to make up for the loss in funding.
“Our contributions are holding their own,” he said. “We’re hearing about other organizations that are losing major contributions, but so far we’ve been fortunate.”
Angela Noble, Here Today Gone Tomorrow thrift store associate, said they’ve seen a decrease in contributions – mostly in furniture, their biggest seller.
“Our income has decreased since the recession,” she said. “Clothes are still being donated, but not as much as in the past. Furniture has been the biggest loss.”
Noble said the thrift store has had fewer customers since the recession started – something the employees found surprising.
“We expected the amount of customers to increase, since a lot of people don’t know what’s gonna happen with their job – if they have a job,” she said.
Ann Williamson, Louisiana Association of Nonprofit Organizations president and CEO, said many nonprofit organizations are feeling the impact of a loss of funding and are looking for ways to manage funds – including sharing costs with similar organizations.
Williamson said two years ago Governor Bobby Jindal and the legislature created criteria non-profit organizations must meet to receive state funding: the organization’s work must advance the priority of a state agency; the organization must complete the proper disclosure form; their work must be openly presented and discussed during legislative committee hearings; and their work must have a regional impact.
“With greater challenge comes opportunity,” she said. “We’re sure these times will pull out the best in everyone to really evaluate their work with greater discipline and continue to move forward.”
Acaldo said St. Vincent de Paul has a “wait and see” approach to budgeting for next year, trying to stretch a smaller amount of money to cover all of their services. He said he expects to make cuts, but doesn’t know what will be affected.
Though times may be tough, Acaldo said this setback isn’t the worst hardship St. Vincent de Paul has faced. The organization was active in Baton Rouge during the Great Depression, managing to help those in need despite trying circumstances, he said.
“Charities are being challenged,” Acaldo said. “They have to meet a higher need for services with what little funding is available.”
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Contact Steven Powell at [email protected]