As donors struggle with the economy, so do non-profits

LYNN – Add local non-profit organizations to the list of entities clinging to financial life-support as the drooping stock market and cuts in state funding have led to a drastic drop in available cash for essential programs and services.Local organizations like the Boys & Girls Club of Greater Lynn and Operation Bootstrap have managed to weather some expected cuts in state funding in the past few months, but are fighting to make up for a drop in private donations, mainly stemming from the recent stock market struggles.”We rely heavily on foundation support and individual giving,” said Boys & Girls Club Executive Director Robert “Obie” Barker. “But a lot of that is predicated on money foundations make in the stock market, and we all know what investments are doing these days. We have had foundations that normally donate generously reduce donations or deny us.”Barker said the organization has been forced to cut about $150,000 from its approximately $700,000 budget – meaning that programs have been scaled back and staff levels reduced.At Operation Bootstrap, which also relies on private donors along with state adult education funding, organizers say that the tough times are beginning to make everyone nervous, but are yet to drastically alter staffing or program schedules.Gov. Deval Patrick’s first budget cut, made in late 2008, took a chunk of funding away from the Department of Elementary and Secondary Education’s Adult Education Fund, which trickled down to Operation Bootstrap. While the latest cuts, made in January, spared the non-profit from further damage, Executive Director Donald Edwards says the financial future of organization is still murky.”We are nervous like everyone else is right now,” he said. “The unknown is what is troubling, we don’t know how it will affect our state funding, and our foundation funding is less than it has been.”Edwards says he has not had to cut any staff or programs yet, but he has been forced to curtail spending and keep a close eye on the future of his budget.”We are really having to watch our cash flow closely, both on a weekly basis and to the end of our funding period,” he said. “But we have to stay confident and continue to do what we are here to do. I am confident that we will get through it, it is the history of our country when things are bad we are able to come through it and I am confident we can do that again.”While the Boys & Girls Club has been struggling to maintain services, their partners in child care at the Greater Lynn YMCA are enjoying a higher level of success despite the economic woes- due in part to the way their organization is structured.Private donations and state support are lacking at the Y just as they are in other organizations, but a state voucher program has actually helped keep childcare programs busy.The YMCA receives state vouchers to provide child care for qualified parents receiving federal aid so that they can remain employed, which helps keep funding levels steady even as other members drop out because they can no longer afford membership costs.The state has scaled back its funding of those voucher slots, but the organization has been diligent in making sure that the available slots remain full throughout the year.A new facility in Peabody has helped bring in additional revenue to the organization as well, and Executive Director Bruce Macdonald says the Lynn branch is also thriving this year.”It is interesting – I don’t want to give the wrong impression – but we are doing pretty well right now,” said Macdonald. “The new facility (in Peabody) along with some key staff changes have led to us having a pretty good year.”That is not to say that the YMCA is without its economic issues this year, as the state has slashed funding originally earmarked for the organization and private donors have significantly scaled back contributions. Macdonald says he has been forced to eliminate pay raises for staff members and keep a closer eye on organizational spending.The o