Convergence: Our Financially Volatile Environment and The Nonprofit Sector

Grantmakers of Western Pennsylvania and The Forbes Funds Present:

“Convergence: Our Financially Volatile Environment and The Nonprofit Sector”

Conveners: Chip Burke, The Grable Foundation and Kenya Boswell, BNY Mellon

The recent state budget crisis certainly created both psychic distress and actual financial damage for many of our community’s nonprofits.  Will the long awaited budget resolution allow nonprofits and funders to return to business as usual?  Not when one considers the other financial pressures at play that potentially impact the work and sustainability of our area nonprofit sector:

• Balancing Federal Deficit. In 2013, the Congressional Budget Office reported that addressing the nation’s long-term debt requires that we reduce future budget deficits. To do this, our highly polarized Congress will need to increase revenues further; decrease spending on Social Security or major healthcare programs relative to current law; cut other federal spending to even lower levels by historical standards; or adopt a combination of these approaches.
• Balancing State Deficit in 2016-2017. Pennsylvania cannot afford the government it already has. Even with no new spending, we face a $318 million deficit this year and a $1.8 billion deficit the next. Without new revenue, we will see massive cuts in health and human services, education and other valuable government programs. 
• Stock Market Volatility. You’ve likely noticed that the market is off to a stumbling start this year – indeed, one of its worst in recent years.  Market volatility and unpredictability diminish earnings on nonprofits’ cash reserves; reduce foundations’ investment income (and grants budgets); and erode the retirement security of senior nonprofit leaders.
• Living with the Impact of 2015-2016 Budget. Due to Pennsylvania’s 2015-2016 budget delay, many nonprofits were forced to reduce services for their consumers, exhaust their cash reserves and credit lines, take out bridge loans, and temporarily lay off tax-paying employees.  In the aggregate, they amassed millions of dollars in interest payments.
• Financially Fragile Sector. According to the Nonprofit Finance Fund, 50% of nonprofit organizations do not have sustainable funding models.  Nonprofits and funders in other states – including Illinois, New York and California – are increasingly recognizing that public-sector contract processes and reimbursements need to be re-thought to account for the real costs of delivering positive outcomes whether it be in human services, community development, environmental protection, afterschool, arts or education.

GWP and The Forbes Funds invite you to attend a lively discussion devoted to examining:

• The financial pressures – federal, state and local – affecting the sector
• The current state of the region’s nonprofit sector and which organizations are at risk  
• What funders need to consider to help re-stabilize and transform the sector

Panelists:

• Kate Dewey, President, The Forbes Funds
• Marc Cherna, Director, Allegheny County Department of Human Services
• Katie Larsen, CRPC®, Founder and Senior Vice President – Wealth Management, The Larsen Group, Sewickley

This session will be designed to encourage your active participation. 

Breakfast Included.

Space is limited.  Please register by April 21, 2016