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Nonprofits labor to make ends meet in tough times
Squeezed: One in an occasional series on the impact of the economic slowdown
Wednesday, May 28, 2008
Tony DeFilippo, a volunteer from Bethel Park, sorts food at the Greater Pittsburgh Food Bank in Duquesne.

When the economy is hurting, when prices soar and incomes shrink, the pain gets passed along. Consumers have less to spend, and what they spend doesn't go as far. So they cut back on spending ... and often on donations to worthy causes.

The Greater Pittsburgh Community Food Bank and Radio Information Service are just two of many local nonprofit service organizations feeling the pinch. Each has its own particulars, but both face a financial picture considerably less rosy than they did a year ago.

RIS, a reading service for the blind, was looking at a budget shortfall of $105,000 -- almost 40 percent of its $263,000 budget -- until last week when a $30,000 grant was approved by the Pennsylvania Department of Community and Economic Development. Even with that infusion, the group is still a long way from balancing its books.

"The economy tanking really threw us for a loop," said executive director Deborah Weppelman. "We're not going under yet, but we are faced with the prospect of shutting down in the early fall."

RIS has four paid employees, 75 volunteer readers and about 900 clients who pay $40 a year each for a special radio that receives the station's signal. Customers also get a pass code for access to RIS programs streaming on the Internet.

The annual fee is low to make it affordable, so the station relies on individual contributions and foundation money. Both sources are dwindling, Ms. Weppelman said -- philanthropies are changing their funding priorities, and individuals are cutting back.

This isn't RIS's first funding crisis. The service has been in operation since 1976 and used to be funded by the state, but in 2001 its allocation was eliminated. Three years later, the money ran out.

That's when the organization entered a management agreement with Duquesne University and WDUQ radio. The arrangement has allowed RIS to continue bringing listeners the daily newspapers, magazines and original programming on gardening and home repairs for the visually impaired. One of its most popular features is the buyer's guide, with volunteers reading grocery and catalog specials verbatim.

"We are waiting to hear on some grant applications that are out there," Ms. Weppelman said. Meanwhile, the service is planning a fundraiser for June 27 on the Duquesne campus, a cocktail reception and family-style dinner at $100 a ticket. Patrons will be invited to cover their eyes with sleep masks during some portion of the meal so they can experience what RIS listeners deal with every day.

For its part, the Greater Pittsburgh Community Food Bank is facing a quadruple whammy: food product donations are down, as is state funding; purchased food costs are up, along with the demand for services.

"We didn't foresee the drastic rise in fuel costs," said Joyce Rothermel, executive director of the food bank.

"Our trucks drive on diesel so we are experiencing some crunch."

Some shelves that used to hold donated surplus and government commodities -- canned vegetables, meat, fish and fruit -- now hold purchased items instead but in lesser volume because fuel surcharges are eating into buying power.

Also, Ms. Rothermel said, the state cut 4 percent of the agency's funding this fiscal year. That translates into $75,000 less for Allegheny County, where poverty is rising.

But the food bank serves 10 other counties as well. All of them had their funding cut by the same percentage, which means they are relying on the agency even more than in the past.

"It's gotten worse since January," said Ms. Rothermel. "We're paying more for food, more at the pump and the number of new people coming for help continues to rise."

The food bank's current budget is $8.4 million. It serves 383 pantries in 11 counties.

Despite the squeeze, the agency is staying on target to meet its goals this fiscal year: distributing 20 million pounds of food (up from 19.7 million the previous year), with 70 percent of it high-quality nutrition (vs. 67 percent last year).

"It's easier to get snacks donated and harder to get the nutritious foods like fresh produce, meat, eggs and milk," said Iris Valanti, food bank spokeswoman.

She said the food bank has not had to turn down any requests for food, but recent gap studies show that in some areas, the agency is serving as few as 15 percent of people who are eligible for food aid.

"On our best day we're not reaching all the people who need us," Ms. Valanti said. "It could be because of transportation issues, pride or lack of awareness.

"Hunger is not a visible problem" she said. "In a classroom of children, a number of them could be hungry and you wouldn't know it. Middle-class people may be going to food pantries and you wouldn't know it.

"It would be nice if people would think beyond what they can see. That's why our motto is 'Donate, volunteer, speak out.' All are important."

Sally Kalson can be reached at skalson@post-gazette.com or 412-263-1610.
First published on May 28, 2008 at 12:00 am
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