Tough Economy Takes a Toll on Open Arms

Wow, it has been quite the rollercoaster ride this year, for all of us. Just as households and governments have struggled with a falling economy, so have non-profits. Open Arms has not escaped the consequences of the economy either.

Last year by September we were predicting a $60,000 deficit in our 2009 budget due to falling grant and donation income. That amounts to almost 10% of our budget. Part way through 2009 we got hit again with another loss of income that amounts to almost $50,000 in trickle down state funding and lost client fees. Many of the persons we serve have lost jobs and are unable to pay service fees. They are on scholarships or reduced rates or paying over extended periods of time.

And of course we know that family violence calls for assistance increase during economic hardship. Last month we served more than 50 clients through outreach and court advocacy. That’s an agency record for one month.

In addition to the direct economic loss, costs for everything continue to rise. We have battled significant increases in regular expenses like health insurance and utilities, just like many of you have. We have also been faced with unusual expenses. More clients need assistance with food while in shelter and we have fewer in-kind donations coming in.

In-kind donations are the non-cash donations that provide things like cleaning supplies and paper products. In 2007 we had more than 255 in-kind donations valued at more than $22,000. In 2008 that fell to $11,000 worth of items and so far in 2009 we have only had $7,000 worth of those donations. This means that we have been forced to spend more cash than usual on supplies.

To weather the economic losses, we started working last summer on ways we might be able to save money and raise additional dollars. The Board of Directors had a strategic brainstorming meeting and created goals to focus on for the coming year, many of which have been achieved. The staff got together and agreed to change some procedures that make more work for them but saves the agency money. And we started applying for funding in every nook and cranny we could find it.

We renegotiated every utility and line item expense we have to make sure we were getting the best deal possible. We cut two full-time positions and reduced the hours of 38% of our staff. We were awarded some stimulus funding that will help get us through this year and next and we were the surprise recipients of a Mary Kay Ash grant. Several local funders have given us the dollars we need to buy supplies for school prevention programs and Rotary honored its commitment to provide us with funding to handle building needs.

It has been a wide scale community effort. Open Arms staff should be commended for their sacrifices. The agency looks a little different, but we’re still standing. We are grateful to everyone who has helped along the way. As long as donations hold steady for the remainder of the year, we are hopeful we will not post a significant deficit. Like anything, as long as we stick together, we can get through it.