“The Los Angeles human services nonprofit sector is stressed and stretched, and given government human services current and future cuts, the situation is likely to get worse before it gets better,” concluded a study presented on January 31, 2012.
UCLA’s Center for a Civil Society issues a report each year on the state of the nonprofit sector in Los Angeles. The latest report, “Stressed and Stretched: The Recession, Poverty, and Human Services Nonprofits in Los Angeles 2002-2012,” is divided into two parts.
The annual statistical review of the sector as a whole comprises Part II. The more than 31,600 nonprofit organizations in Los Angeles County collectively employ 256,000 people and report total expenditures of $35.4 billion. The breakdown by subfield reveals a familiar picture. Health and Education nonprofits dominate with expenditures of $14.2 billion and $10.3 billion respectively. Human Services organizations’ expenditures total $6.2 billion, followed by Arts, Culture, and Humanities groups at $1.3 billion. For anyone interested in the shape and size of the nonprofit sector in Los Angeles, this study is a good place to start.
Part I of this year’s report surveys the human services sector in Los Angeles; with support from the James A. Irvine Foundation, this survey provided a comparative look back to a 2002 study of human service nonprofits. The quotation at the top of this post suggests the wear and tear the social safety net has undergone in recent years.
The report features a sidebar on homeless shelter organizations, which notes that, among the organizations surveyed in 2002 that provided shelter for individuals who were homeless or at risk of homelessness, more 25% had disbanded by 2011; this represents a failure rate twice as great as organizations providing childcare, mental health/substance abuse assistance, and aid to people seeking employment. Revisions in public policy by government and changes in funding priorities by foundations have had a role in this outcome.
“Although age and a fledgling fundraising capacity appear to play important role in shelter organizations’ survival, a shifting emphasis from funders and government agencies towards permanent housing has also significantly altered the shelter landscape over the last decade.”
Since the Great Recession, beginning in 2007, these annual reports have documented the continuing effects of a sluggish economy on the sector; this year the authors (led by Zeke Hasenfeld, professor of social welfare) found in surveying the human service sector that, with increasing demands for services and a challenging scramble for resources, the safety net has become frayed.
The authors make six recommendations to nonprofit leaders:
- Increase data gathering and sharing, collaboration and strategic planning across the nonprofit, philanthropic, government and academic sectors.
- Focus on poverty first.
- Inspire, encourage, promote, and cultivate new private and personal giving.
- Strengthen advocacy.
- Consider and re-consider opportunities for collaboration, partnership, and mergers.
- Participate in capacity-building activities.
