Funders, Nonprofit Service Providers Launch Giving Campaign in Response to Deepening Economic Crisis

United Way Survey Shows Nonprofits Are Feeling Effects

Silicon Valley Open Arms Campaign to Raise Awareness About the Need to Give as Funding Shrinks and Client Numbers Surge

SAN JOSE, Calif., November 13, 2008 – A coalition of funders and nonprofit service providers launched the Silicon Valley Open Arms campaign today in response to the deepening economic crisis facing our country. The campaign encourages community members to come together and open their arms by giving to those in need. (Below is a list of Open Arms Coalition members.)

              The launch of the campaign coincides with results from United Way’s Fall 2008 Nonprofit Pulse Survey, which shows nonprofit service providers in Santa Clara County are feeling the effects of the economic downturn. More than 62 percent of survey respondents from Santa Clara County reported a drop in revenue from July 1 to September 30, compared to the same period last year. More than 58 percent of respondents reported an increase in demand for services during that same timeframe compared to last year.

              With the credit and foreclosure crisis, drop in investment savings, layoffs, and high cost of transportation and food, people are hurting. Nonprofit service providers are struggling to help the growing number of people who need food, shelter and other basic necessities. Not to mention health care, employment training and other services.

              While the need for services is dramatically rising, funding from individual and corporate donors, foundations, government grants, and investments is shrinking. In addition, Governor Schwarzenegger recently announced California is facing drastic budget cuts.

              “It’s a scary time, not only for clients, but for nonprofit service providers as well,” said Carole Leigh Hutton, president and CEO of United Way Silicon Valley. “We understand why someone’s first instinct might be to keep a tight grip on that wallet. But United Way formed the coalition to remind the community that this is not the time to back away from charitable giving. Many of us are still able to give and to volunteer time. We can survive this crisis by working together and helping those who are less fortunate. So we are asking people to give what you can to the charity or cause of your choice. If you are doing well, and many people in Santa Clara County still are, we hope you will increase your giving over last year and give as generously as you possibly can.”

             To help make that possible, the Silicon Valley Open Arms Coalition has developed a website that encourages people to donate and call on others to give what they can. The portal is located at www.211scc.org, where visitors click on a Silicon Valley Open Arms logo to access the website.

             The website provides information about the Silicon Valley Open Arms campaign, ways to donate, and promotional tools to get out the message through letters, blogs, e-mail blasts and newsletters for companies, faith-based communities, schools and the general public.

             United Way’s Fall 2008 Nonprofit Pulse Survey showed that from July 1 to September 30, 52 percent of respondents from Santa Clara County experienced a decrease in donations by individuals, 40 percent saw a decrease in corporate and foundation giving, and 26 percent had a decrease in state and local government funding, compared to the same period last year.

              Of those Silicon Valley nonprofits that experienced an increase in demand for their services between July 1 and September 30, compared to the same period last year, nearly 69 percent were able to meet that demand while 31 percent were not.

              Other statistics confirm the dramatic rise in need, requiring more funding to keep the safety net from eroding. From July 1 to September 30, 2008, calls to United Way’s 2-1-1 Santa Clara County information and referral service seeking food increased 55 percent over the same period last year. Requests for housing jumped 20 percent.

              Other Open Arms Coalition members have experienced huge increases as well. For example, Catholic Charities of Santa Clara County has seen a 37 percent increase in clients over the last year and a 41 percent rise in the number of seniors participating in its senior nutrition program. Second Harvest Food Bank reports that from July to September 2008, the amount of food distributed increased 22 percent over the same period last year. The number of people served rose 17 percent while requests for food assistance jumped 55 percent.

              “Because of circumstances, the newly poor are joining the ranks of those we have already been serving,” said Greg Kepferle, president and CEO of Catholic Charities. “There is an absolute need to increase giving to the safety net as well as programs that help people step up out of poverty like employment services, debt counseling and financial education.”

              United Way’s 2-1-1 also offers a valuable resource for those who need services and those who want to help. The three-digit telephone number and website (www.211scc.org) connects users to hundreds of community services and areas of need. The free, confidential service is available 24 hours a day, seven days a week, in more than 140 languages.

             “Now, more than ever, our services are needed to ensure that those negatively affected by the economic downturn, layoffs, and high food prices have access to healthy food,” said Keith Flagler, CEO for Second Harvest Food Bank of Santa Clara and San Mateo Counties. “We are working hard to meet the rise in demand and need the public’s help to achieve our mission.”

Open Arms Coalition

Asian Americans for Community Involvement (AACI)

Mexican American Community Service Agency

Catholic Charities of Santa Clara County

Community Service Agency for Mountain View/Los Altos

FIRST 5 Santa Clara County

The Health Trust

Second Harvest Food Bank

Silicon Valley Community Foundation

Silicon Valley Council of Nonprofits

Sobrato Family Foundation

United Way Silicon Valley

About United Way’s Nonprofit Pulse Survey

United Way conducted its Fall 2008 Nonprofit Pulse Survey from October 22-28. The survey was sent to 1,807 nonprofit organizations in Alameda, Contra Costa, Lake, Marin, Mendocino, Napa, San Francisco, San Mateo, Santa Clara, Solano and Sonoma Counties. Respondents totaled 292 for a return rate of 16 percent. The majority of respondents in this year’s survey categorized themselves as providing education, health and human services.

For more information, contact:
Maria Stokes
United Way of the Bay Area
(415) 808-4262
mstokes@uwba.org