CT nonprofits shrinking as need grows

Just as their existence is threatened, Connecticut nonprofits are seeing greater demand for their community services than ever, a new survey shows.

The Connecticut Association of Nonprofits found 54 percent of the group's members who answered the survey reported seeing consumers they had never seen before.

They also reported an 82 percent rise in demand for services in general, the survey said.

"The escalated need for services from first-time users was dramatic," says Liza Andrews, public policy director for CT Nonprofits. She oversaw the association's survey of its 500 members. "This increase in demand can be attributed to the fiscal climate and was most dramatic in the health and human services provided by nonprofits.''

Fifty-five percent say they have been forced to cut staff due to lower funding and higher expenses. One third claimed they have had cuts of 10 percent or more in government grants/contracts, investment income and corporate donations.

More than half the respondents say their organizations' current circumstances are worse than a year ago.

Nonprofits continue to do all they can to direct scarce funding towards direct care and services. A large majority of respondents (84 percent) kept their administrative and general expenses to 15 percent or less of their budgets, ensuring that the maximum amount of resources go to the provision of direct services.

Recently, The Village for Families & Children Inc. and The Shelter for Women Inc. are merging, both century-old, announced plans to merge.  In addition, VNA Services Inc. and VNA Community Healthcare of Guilford, two Connecticut nonprofits that provide home-care health service, are merging.

All cited mounting financial pressures for their merger plans.

"It is clear that this pattern of decreased funding, increased costs and enlarged service demand has the nonprofit delivery system headed in a perilous direction," says Ron Cretaro, executive director, CT Nonprofits.