Non-Profit Issues
By Robert Beecher
Hey everyone! With so many pressing issues facing the region, and with a gap between the services that government is capable of providing and the services needed to run society, over the past few decades we have seen the rise of Non-Governmental Organizations (NGO’s) that are shaping public policy. With non-profits now seen as the “third sector” of the economy, it’s important that students be aware of the challenges and successes of the non-profit industry. Each week, I’ll be sharing a story about an NGO or related topic, with an emphasis on local issues. This week’s post, however, will focus on an issue that can sometimes be overlooked: the funding of non-profits in rural communities.
Source Article
This article details the challenges faced by rural non-profits in obtaining funding for their worthy causes. As the article points out, “22 percent of the nation’s poor live in rural areas…[but] those areas account for only 8 percent of the total spent by nonprofit organizations”. This is a shame, the article states, because “They may be more fiscally responsible than those organizations located in urban and suburban areas. Just 39 percent of rural nonprofits reported a deficit in 2007 as opposed to 41 percent in urban areas. In addition, 30 percent of rural organizations had less than 3 months of reserves compared to 38 percent of urban groups.”
The article also points out the difference in revenue sources, with a larger percentage of rural non-profit funding coming from both service fees and individual donors. This means that they are receiving les money both in terms of dollars, and percentages from governmental agencies and grants. The article sites the relative lack of education in rural populations and smaller budgets as the reason that talented grant seekers are difficult to find and retain.
Overall, the article discusses the trend of rural non-profits to network together to provide their services. This is different from urban non-profits; when I served in an AmeriCorps program, I saw how many services were duplicated by different small non-profits that had enough funding to self-sustain. The current trend is to link with national NGO’s, though one source discourages this, and says to instead focus on local grassroots efforts.
So next time you want to volunteer, why not check out a rural community? You may be surprised by the rewarding feeling of helping out a population that isn’t typically considered when we think of those in poverty. And for those interested in the non-profit career, why not try to market your grant-writing skills outside of the city; you never know what opportunities it might bring!