In recent months, trying to keep track of which programs are going to continue to be funded and which aren’t has been challenging to say the least. It seems like the game plan changes from day-to-day in terms of how and where money is going to be allocated, so I was excited to get word a couple of weeks ago about an event in Corbin that could shed some light on exactly where we stand.
The event was a forum hosted by the Kentucky Nonprofit Network (KNN) at the Corbin Center. The idea behind the forum was to, as the press release put it, assist nonprofit organizations as they continue to “grapple with an uncertain future for federal grants and other funding sources.”
The Corbin forum, which took place last Wednesday, May 7, was one of nine such events that the KNN is hosting throughout the month of May. The first forum was held in Lexington on May 6, there was another forum in Hazard later in the day on May 7, and there was one in Ashland on May 8. Upcoming forums are scheduled for Fort Wright (May 14), Bowling Green (May 15), Owensboro (May 15), Paducah (May 16) and Louisville (May 21).
When I showed up at the Corbin forum last week, I was introduced to Danielle Clore. She is the CEO and Executive Director of KNN, and while I only had a few minutes to converse with her, she was able to send me away with quite a lot of useful information. I would like to take this opportunity to relay some of that information to all of our readers now…
According to IRS data collected in 2023, Kentucky has well over 21,000 registered tax-exempt nonprofit organizations in operation within its borders. In our region, the Cumberlands, there are over 1,100 nonprofit entities. When breaking down the primary purpose of the nonprofits that are operating in the Commonwealth, human services tops the list by a pretty wide margin.
Religious nonprofits and those providing public/societal benefits were the next-largest categories, followed by education, arts/humanities and health.
Overall, I learned that the nonprofit sector is the fourth largest in Kentucky, employing nearly 163,000 people and paying out over $10 billion in wages annually. In the Cumberlands, nonprofits account for nearly 11,500 jobs across the 12-county region, paying out a combined $600 million in annual wages.
The main concern among nonprofits at the moment appears to be three-fold. There is the threat of broken government contracts, the decline in charitable giving, and the (false) public perception that nonprofits are, generally speaking, not doing anything to benefit the lives of the average American.
The KNN exists to unify nonprofits and help them find ways to save money, especially in times of economic uncertainty. They also aim to educate and provide information on helpful resources that they hope will allow nonprofit managers to overcome current barriers and continue to provide vital services to those people they are intended to serve.
A packet that I picked up at the Corbin forum was titled “The Facts About Charitable Nonprofits, Federal Funding and Why It Matters to You.” The six-pages included in the packet are filled with information, and offer an overview of several important topics, including Kentuckians who are most at-risk, the continued delivery of critical services, potential effects on employment and the economy, and ensuring that organizations providing services to the community remain accountable and transparent.
Again, there is a lot of information, but I will do my best to provide a snapshot of each individual topic.
When it comes to those who are affected by the work of nonprofits, or would be negatively affected if nonprofits ceased to operate as they do now, the KNN stresses that pretty much 100% of Kentucky residents are impacted by the work of charitable nonprofits in some form or fashion, whether it be directly or indirectly.
As for the nonprofit sector’s ability to continue providing services in a variety of critical areas, the KNN is getting the word out that government sources account for 33% of annual revenue for nonprofits in Kentucky and that 66% of those nonprofits are now facing the potential loss of government funding. This would be bad news for the many thousands of citizens across the Commonwealth who are currently benefitting from the work being done by charitable nonprofit organizations.
In terms of employment and the economy, go back to some of the previous figures that I shared concerning the amount of people employed by nonprofits and how much money is paid out in the form of wages on a yearly basis. In addition to that, the KNN is highlighting the fact that, according to the U.S. Census Bureau, Kentucky has the fifth-highest overall poverty rates in the country. Job loss anywhere is not good, but it could be especially catastrophic here, where so many are already dealing with a severe lack of resources when compared to most other states.
Finally, the KNN is pointing out that charitable nonprofits must operate under strict government regulation and public scrutiny. Because of this, and other factors, they say that the idea of private philanthropy being able to fill the gap and ensure the continuation of various services is false, and will never work out as intended. Aside from the potential ethical risks, private donors would have to increase their giving by just over 280% in order to replace lost government funding. That’s a 280% increase over the $107 billion average that is already being given annually, by the way.
As you can see, there is a lot to look at here. There is a lot to consider, and a lot to chew on. For that reason, I am hopeful that I can follow up with Clore and some of the other folks who were present at the Corbin forum last week. I would love to hear more about some of the concerns that each individual organization is having right now, so stay tuned. We’ll see what happens. In the meantime, learn more about the Kentucky Nonprofit Network by visiting them online at www.kynonprofits.org.
Very quickly before I wrap up… since we are discussing nonprofits, I wanted to mention that the News Journal is getting the opportunity to help out with a project that is going to spotlight a nonprofit organization that is doing great work in the local area. The project is being spearheaded by the Leadership Tri-County Class of 2025, and the winning organization will get some coverage here in our paper, as well as other publications in the tri-county area. Forcht Broadcasting is also offering some free airtime to help promote the chosen organization’s good work. There is a nomination process currently underway where folks in the community can submit their ideas for which nonprofit they would like to see featured. More details can be found on our Facebook page, as well as the Facebook page for SAM 103.9 WWEL-FM in London. Thanks to Leadership Tri-County for putting this project together. We look forward to doing our part to help promote the chosen nonprofit!
