Non-profits could drain their reserves

    A new statewide study claims the impact of the Pennsylvania budget impasse goes beyond the nonprofit agencies waiting for funding.

    A new statewide study claims the impact of the Pennsylvania budget impasse goes beyond the nonprofit agencies waiting for funding.

    Listen:
    [audio: 090821sdimpact.mp3]

    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.

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