Carrie Hoops, Executive Director, Nonprofit Association of Oregon/TACS

Resilience, ingenuity, and perseverance see Oregon’s nonprofits through hard times

As our state motto suggests, we Oregonians pride ourselves on doing things differently. From the legendary waffle-iron origins of Nike to the effervescent music of Pink Martini, the spirit of innovation can inspire success. But when it comes to creating a stable, balanced economy, Oregon struggles with a combination of unique hurdles that include a biannual legislature and budget, capped property taxes, a history of divisive citizen referenda, and a constitutionally mandated surplus revenue rebate. In terms of square miles, we’re the ninth largest state; but in terms of population density, we rank 39th. In our purple state, there’s genuine concern about an urban-rural divide: Oregonians living outside the Willamette Valley often feel overwhelmed by the liberal political weight of what is known with affection and derision as “the People’s Republic of Portland.”

While currently lower than its May 2009 high of 12.3 percent, Oregon’s December 2009February 2010 seasonally adjusted unemployment rate was 11.010.7 percent. But throughout 2009, the state’s teen unemployment rate averaged more than 31 percent. The U.S. Department of Agriculture places Oregon’s food insecurity and hunger among the nation’s highest, and statewide foreclosure rates are currently estimated at one in every 379 homes. So it’s no surprise that the Pew Center on the States recently identified Oregon as one of 10 states on the brink of a financial cliff. In January 2010, we took a step back from the edge when two ballot measures upholding personal and business income tax increases—including raising the minimum annual corporate income tax from $10 to $150—passed in a contentious special election. The measures will prevent a $727 million shortfall in our biennial budget. But nonprofits, policy makers, state agencies, foundations, and other members of the service-delivery sector know that we’re not out of danger yet.

In August 2009, the Oregon Community Foundation conducted a survey of nonprofits to assess the recession’s im-pact on the health of our sector. Respondents reported that since July 2008, the demand for services had increased by an average of 12 percent, but more than 30 percent had eliminated programs and services or laid off staff in response to declining revenue. In the face of such seemingly unrelenting economic gloom, how has the nonprofit community responded? Three examples from the field illustrate the resilience, ingenuity, and perseverance of Oregon’s nonprofits.

According to Oregon Volunteers, Oregon’s Commission for Voluntary Action and Service, 52 percent of Oregonians volunteer in their communities every year. The impact of community service is nowhere better illustrated than at the Oregon Food Bank (OFB), the hub of a network of more than 900 partner agencies serving Oregon and Clark County, Washington. Last year OFB's network distributed a staggering 66.2 million pounds of food. This effort would not have been possible without the small army of volunteers who logged nearly 1.8 million hours: the equivalent of 852 full-time workers at an estimated value of $28.5 million.

Nonprofits have found ways to weather the economic storm through careful management, diversified funding streams, and clear messaging in their communities. Central Oregon’s Deschutes County has been particularly hard hit by the housing and building bust. Deschutes Children’s Foundation (DCF) provides rent-free facilities and no-cost property management for 26 nonprofits that directly serve children and families and, in 2008, logged more than 70,000 client visits. DCF recently completed the $4.1 million Better Together capital campaign for a new East Bend campus and an addition to a resident program. According to Executive Director Kim McNamer, “Our model gives resident nonprofits a platform for collaboration and sharing that better enables them to meet needs in our community.”

Arts and cultural organizations have been especially challenged to raise funds from individuals and foundations that may have redirected philanthropy from their diminished corpuses to meet basic human needs. The Oregon Cultural Trust, a statewide public-private partnership with a protected endowment, strengthens and preserves Oregon's arts, humanities, and heritage nonprofits. Executive Director Chris D’Arcy has adeptly positioned and balanced the quality-of-life and economic-vitality arguments. As D'Arcy notes, “Giving to the Cultural Trust increased by 10 percent by the end of 2009. Oregonians care about the history of their communities and the many ways the arts and culture makes a difference in our lives.”

More than half of the 501(c)(3) organizations registered with the Oregon Department of Justice have annual operating budgets of less than $50,000. From these micro-enterprises in every corner of the state to well-known names such as the United Way and Habitat for Humanity, Oregon’s nonprofits are resourcefully holding distressed communities to-gether, creating safe havens, and helping all Oregonians fly with their own wings.

Carrie Hoops is the executive director of TACS and the Nonprofit Association of Oregon.