Non-profits could drain their reserves
Monday, August 24th, 2009
A new statewide study claims the impact of the Pennsylvania budget impasse goes beyond the nonprofit agencies waiting for funding.
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Six of ten nonprofit agencies have dipped into reserve funding to keep operations running, and nearly three in ten are relying on extended credit lines.
That's according to a survey carried out by the United Way of Pennsylvania.
United Way President Tony Ross says the private companies that do business with nonprofits are feeling financial pressure, too.
Ross: 34% of our respondents have missed a rent or mortgage payment. 33% have reported missing a utility payment. Some 50 percent have delayed repairs, or postponed repairs on their facilities. And 63% have reduced the amount of supplies that they're purchasing.
The United Way got input from 500 agencies across Pennsylvania's 67 counties.
Ross points out that even if a budget gets signed in the next few weeks, nonprofits will have to wait until mid-September or later to receive the funding they count on.
He says most operations don't have the resources to last into October without that government support.