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State budget cuts force nonprofits to reduce services

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A survey conducted by the Delaware Alliance for Nonprofit Advancement (DANA) found that state funding cuts have forced nonprofits to reduce services.

The fiscal year 2018 budget reduced grant funding to nonprofits by more than $25 million, including over $8 million in grant-in-aid dollars.

Last fall, DANA reached out to nonprofit executives to better understand the impact of the budget cuts. Among the 52 respondents, a number said they have reduced service hours, promotions and employee benefits. In addition, 13 organizations laid off a total of 40 workers.

“Several executives offered additional insight that the greatest impact of decreased funding is their inability to
expand services to meet growing demand,” said Sheila Bravo, CEO of DANA. “They reported that they reduced hours, transportation services, or have to increase wait lists for clients to be served.”

Some short term strategies to the fill the gap include holding more fundraising events, forming strategic partnerships and eliminating “fringe programs,” according to DANA.

“The shifting and shrinking funding climate for community services can be an opportunity for nonprofit leaders to focus on what they do best and innovate to deliver services in new ways,” said Bravo. “However, there also comes a point of diminishing returns when so little investment is flowing into the social sector, that we lose a critical mass of services, thus diminishing the quality of life we desire in Delaware.”

The full report is available here: delawarenonprofit.org/research-and-resources

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