Over 300 funders and nonprofit representatives met to hear a presentation and panel discussion on how Cleveland area funders are responding to the economic crisis.

Michel Benz, United Way – They are almost at the end of their 2008 campaign and they expect to miss their goal, but not significantly. Some donors are stepping up to the plate and making up for donors who are unable to contribute as they have in the past.  UW has done cost cutting in its own operations and frozen all staff salaries.

Barry Doggett, Eaton Corp. – Eaton’s 2008 profits are down 38% and 2009 will be worse.  Since funding comes from pre-tax income, giving will be down. All other corporations are in the same fix except PNC/National City whose execs say they will fund the same in Cleveland for 2009 as National City did for 2008. They will not fund as many capital grants. Those they do fund will be less for less and will be spread out over more years.  Sponsorships will decrease.

Bob Eckardt, The Cleveland Foundation – assets are down 25% to 1.75 billion.  1.75 is still a lot of money and significant grants will still be made to the Cleveland community.   2009 will be flat funding – no increases.  June’s capital giving will be deferred in order that the Foundation may be as flexible as possible to the community’s needs.

Joe Gauntner, Cuyahoga County Department of Employment and Family Services – The county has seen an increase of 1000 households per month requesting public benefits – in December it was 2000.  The county will cut back, if necessary, to funding only the programs it legally must fund. It expects to receive some money through the economic stimulus plan.

Bob Jaquay, The George Gund Foundation – The Foundation has seen a 30%+ decline in assets.  Will payout 6% of portfolio value in 2009 - $18 million this year down from $23 million in 2007.  They will continue to be flexible on operating support and are still looking at the “hopeful opportunities,” not just survival of nonprofits.  The Foundation continues to be open to any new ideas that nonprofits may have.

Tips for grantees:

• The nonprofit world is going to shrink just as the rest of the economy is shrinking;

• Focus on capacity building, not new programs;

• Form strategic alliances to cut costs or advance services;

• Collaborate with other nonprofits;

• Look for opportunities to merge – there are too many nonprofits in Cuyahoga County – choose a partner before one is forced upon you;

• Continue to work on the alignment between nonprofit needs and public policy.  The amount the govt. gives nonprofits is always far greater than foundations can offer;

• Look for earned income opportunities;

• Use volunteer support from corporations to build capacity – this can still be had even when profits are low and they have to cut grant funding;

• Nonprofits that need assistance to do these things should turn to the nonprofit centers at Cleveland State and Case Western Reserve University, Business Volunteers Unlimited (BVU) and foundation program officers for advice and help; and

• Research new grantmakers at the Cleveland Foundation Center Library, www.foundationcenter.org/cleveland