Saturday, Aug. 23, 2008

Herb Opalek: Nonprofit factor no laughing matter

A very rich lawyer is approached by a local charity.

The charity's CEO is concerned that the lawyer made more than $1 million last year but didn't donate even one cent to charity.

"First of all," says the lawyer, "my mother is sick and dying in the hospital and it's not covered by health care. Second, I had five kids through three divorces. Third, my sister's husband suddenly died and she has no one to support her four children ..."

"I'm terribly sorry," says the CEO. "I feel bad about asking for money."

"Yeah," the lawyer responds, "well, if I'm not giving them any money, why should I give you any?"

In this economic downslide, what is happening to local nonprofits in Merced County is not a laughing matter.

There is no need to reiterate how bad the housing and employment market are or how much our local bank's profits seem to drop by the quarter.

The county is dependent on the state's budget but whatever the outcome, there is nary a doubt that our county Human Services Department is in for a rough time.

All of these factors trickle down to the deficit of the lost, last and least who roam our streets and live under our bridges and in our parks.

Here are the sad facts from the Center for the Continuing Study of California Economy:

Today the state and nation are in the midst of an economic slowdown.

Housing markets are in the middle of a substantial downward correction in housing prices.

The first baby boomers turned 62 in 2008 beginning a tidal wave of aging that will reshape the state's housing and labor markets.

Since 2000, California's share of U.S. jobs has remained constant, the first time that the state has failed to outpace the nation in job growth when the U.S. economy was growing.

Which trends are temporary and which signify more permanent changes and challenges for California?

One trend is certain. For the next 10 years the number of residents aged 35-54 will show little growth and the current generation of baby boomers will be slowly replaced by the children and grandchildren of immigrants.

What does this tell our "community benefit organization" about its chance to survive?

The question needed to be asked is: How can our local nonprofits take up the slack and serve those who are suffering so severely -- the foreclosed, unemployed and growing homeless population?

And finally, what will government do about the hot-button issue of correcting the illegal immigration chaos that adds, more than in any other state, to California's economic woes?

To borrow the language of Scripture, I am neither a prophet nor son of a prophet.

But this I do know: There are many more types of nonprofits right here in Merced than most of us realize.

I can think of our organizations for arts and culture, education, environment and animal, health, human services, public affairs/social benefit, religious, science and technology and social science.

All of us compete for the same dollar and each and every one of us is hurting.

I believe we must take stock of who we are and what we do.

Community benefit organizations that have outlived their usefulness must merge with stronger, more vibrant organizations and work together to promote their cause.

Funders must become more aware of results and outcomes, rewarding those community organizations and nonprofits that show consistent results for the entire community.

The United Way should take the lead in accrediting our community organizations. On the federal level, this election must produce a president with a viable solution to our immigration problems and better mechanisms for retraining those who lose their jobs.

Our local nonprofits must return thanks to our community, acknowledging its continuing support. We must do our share in developing and promoting Merced.

We cannot remain hidden in the corner and play lone ranger. Most of us are out there in the trenches cooperating with city and county, filling needs not serviced by local government, transforming lives and reeducating those lost in the maze of life.

We must husband our resources, be good stewards of your donations and openly display our financials.

In the recent past, there has been grave disappointment with some of our better known organizations.

Boards of directors of our nonprofits must assume better oversight and retain professionals to run the day-to-day operations. The county and city must monitor those that they give money to and then assure the community that they are getting a better bang for the buck. Indeed, the religious sector must be as responsible as local government as to whom it supports.

I pledge to do my share.

We have cut our costs, including of salaries, by 10 percent. to assure continuity to those we serve. We know that better stewardship reaps rich rewards from man and God. and I challenge our partners -- the other nonprofits, local governments, the federal government and you, our supporters -- to do your rightful share in lessening the plight of those in need.

Herbert A. Opalek is CEO of the Merced County Rescue Mission.