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Canwest News Service
Ontario's not-for-profit sector has been hit hard by the recession, with no clear end in sight, says a new study by the Ontario Trillium Foundation (OTF).
The grant-making foundation interviewed a hundred of its grantee organizations last January to find out how they were coping with the economic bust, and interviewed them again in the fall.
Three-quarters — 75 organizations — reported they were feeling the effects of the economic downturn compared with 30% who responded similarly in January.
Most say a significant decrease in corporate and individual donor support in 2009 has had a negative impact on their programs and services.
"The biggest challenge facing non-profits is keeping their eye on the long term," said Robin Cardozo, CEO of OTF. "Because of these short-term donation crises, many organizations are focusing entirely on the day-to-day."
If non-profits are unable to think about the future, "the impact of this recession is going to continue for years," he said.
The impact is already obvious to certain segments of the population. Employment and credit counselling services are more in demand than ever. Ontario's Niagara area alone has faced six plant closures and major manufacturer layoffs since 2008, including 800 people laid off when John Deere closed its St. Catharines plant. In response, the Employment Help Centre, which has offices in St. Catharines, Welland, Grimsby and Smithville, saw its client numbers double in the first six months of 2009.
The centre's wait time to see an employment counsellor has risen to four or five weeks instead of one.
"Five weeks is a long time to wait when you need help with your resume or are thinking about a career change," Mr. Cardozo said.
The silver lining? Tight budgets and the uncertain year ahead have forced the non-profit industry to become more efficient, he said. Many organizations have found new ways to collaborate with other non-profits, including sharing space and resources.
"Organizations are learning how to collaborate on things they might have done purely on their own in the past," he said, adding non-profits are also thinking more creatively about fundraising.
"Lately, there has been some economic relief, employment numbers are up, stock numbers are up, housing is up," Mr. Cardozo said.
"I think there's a danger in assuming that when these numbers are up, everything is OK for not-for-profits too. But they have a way to go before they climb out of [the recession]."
There are still plenty of unknowns. Federal and provincial deficits, for one, will have an impact on government grants.
And nobody knows how much corporate and individual donors will give in 2010.
"It's hard to ask traditionally generous companies to give when the corporate sector has had a very tough year as well," Mr. Cardozo said. "But we have to encourage companies not to cut off the organizations they support."
