`People will really suffer'

Oklahoma nonprofits face financial turmoil

With event cancellations and individual donations dwindling, Oklahoma' s nonprofits are preparing for possible financial turmoil because of the COVID- 19 pandemic.

Oklahoma has a robust network of nonprofits that play a significant role in the state's social safety net, and the demand for services from food banks or housing agencies has skyrocketed.

“This pandemic has put more customers at the doors of non profits than ever before,” said Marnie Taylor, president of the Oklahoma Center for Nonprofits, at a recent Oklahoma County commissioners meeting.

According to a July survey by the Oklahoma Center for Nonprofits:

• 70% of nonprofits applied for the federal Paycheck Protection Program.

• 60% canceled a fundraising event.

• Over 50% said they didn't believe they' d meet their funding goals.

Taylor said the center is doing another survey with November data, and she expects the situation to be worse, particularly with the number of staff layoffs or furloughs that might happen.

Heading into the holiday season, the nonprofit sector typically hosts Christmas galas or fundraising concerts, and people are usually giving endof-the-year donations.

But in the ninth month of the ongoing COVID-19 pandemic, large gatherings aren't safe, and families are cutting back on donations, Taylor said.

In Oklahoma, many families and businesses were also impacted by the most recent oil crash.

Compound a series of “very lean years” with state budget cuts and uncertainty around federal grants because of COVID's impact on the economy, and nonprofits will likely face months of financial threats, Taylor added.

“2021 could be harder than 2020 in many ways for nonprofits,” Taylor said.

Nonprofits were eligible to receive millions of dollars in federal coronavirus relief funding — known as CARES Act funding — that was dispersed from federal, state, county and city governments.

Oklahoma City allocated $1 million of its CARES Act dollars directly to the United Way of Central Oklahoma to disperse to nonprofits, and nonprofits were eligible to apply for several other city-directed CARES Act relief programs.

Oklahoma County recently approved a $15 million CARES Act program to provide grants of up to $ 100,000 to small businesses and nonprofits inside the county but outside of Oklahoma City. Applications opened Nov. 23 and close in early December.

Still, the long-term impact of potentially losing federal grants or seeing funding amounts cut has many providers wary.

The YWCA of Oklahoma City serves victims of domestic violence, and leadership said their biggest concern going forward is governmental grant funding being cut because of the economic aftermath of the COVID-19 pandemic.

“We are very concerned about access to services because of funding ,” said Brandon Pasley, director of specialized training for the YWCA.

Taylor hopes members of the public still consider giving what they can this holiday season, particularly since Dec. 1 is the next “Giving Tuesday,” a day nonprofits call out to the public for a fundraising drive.

“I think there are a lot of people in Oklahoma who believe other people take care of nonprofits,” Taylor said. “We are a very generous state, so I'd tell people to stop thinking that.

“People will really suffer — true suffering — if a nonprofit closes.”