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Since I shared our initial response to the changing economic landscape with you in early October, the economy has continued to deteriorate, affecting us all. A recent Chronicle of Philanthropy survey found that many foundations lost nearly one-third of their assets due to the steep decline in the stock market over the past year. Meyer Memorial Trust experienced a 23% decline in the value of assets during this period, leaving a balance on December 31, 2008 of $530 million.
(MMT asset graph reflects investment performance, grants and loans paid out, administrative and investment expenses, etc.)
As a result, we anticipate having less money to distribute over the next few years than we have had in the recent past. At the same time, we are well aware of the double challenges confronting the nonprofit sector –- organizations are faced with responding to increasing demand for critical human services at the same time they are coping with declining revenues from individual and corporate donors, reduced public funding and declining foundation funding.
In the midst of the constant bombardment of bad news, however, I want to offer some reassurance. While the Trust’s payout will be less this year than in the recent past ($32 million in FY '07, $37 million in FY ’08 and approximately $29 million anticipated for FY ’09), we are open for business and we plan to continue to make new awards throughout the balance of this calendar year. We of course plan to honor all grant and loan commitments already awarded.
Despite these challenging times, we find much to feel positive and hopeful about. We have developed a number of targeted ways to respond to current economic conditions that we hope will give nonprofit organizations reason to feel positive and hopeful as well.
MMT is launching an Operating Funds grant program to help small- and mid-sized organizations that have been hit particularly hard by the economic crisis. This opportunity will provide grants of up to $50,000 to key organizations that have received a Responsive or General Purpose Grant from MMT within the past five years and for whom a cash infusion will be critical to weathering the economic storm. This program is now open, with more information posted here and here.
Other types of operating requests should continue to be made through the Trust’s Responsive and Grassroots Grant programs as usual.
As we recently announced, MMT is soliciting proposals for planning grants to allow nonprofits to explore shared space and services opportunities in order to increase efficiencies and reduce costs. Details of this opportunity are available here.
MMT is focusing the lens through which we review funding requests. Over the balance of 2009, the following considerations will guide our work:
>> Proposals to expand or maintain critical human services in response to demonstrated needs will be our highest priority. While we will continue to consider requests from nonprofits working in other areas of social services, the arts, education, and the environment –- and anticipate making grants in some or all of these areas over the coming year –- critical human services will be prioritized.
In all areas, expansion of existing programs to serve increased demand created by the challenging economy will generally be preferred over development of new programs. Opportunities that are time-sensitive or have strong potential to leverage other funds will be favored over those that could reasonably be postponed until the economic outlook is brighter.
>> Capital projects will only have limited funds available. We will look most favorably on modest requests for capital projects for which most funds (~80%) have been raised or for which MMT funds would be paid out in future fiscal years.
>> Capacity building investments will be modest. As always, capacity building projects based on solid planning and reflecting credible projections will receive best consideration.
>> Multi-year awards will generally be modest and limited. Modest multi-year funding requests are preferred given the uncertainty about when the economy will stabilize.
>> Requests to enhance efficiencies and effectiveness are encouraged. We also encourage well-planned proposals designed to gain efficiencies or increase effectiveness in the delivery of program services. For example, transfer of services between organizations, mergers, co-locating, sharing of back office functions, etc.
Finally, we encourage current Meyer Trust grantees to contact their program officers if there is concern about the ability to effectively carry out work funded by our grants.
We are also reducing MMT administrative expenses. Consistent with prudent business practices we have and will continue to take steps to reduce our operating costs in order to maximize the level of funding available to nonprofits across the region.
We know that –- in great part due to the good work of local nonprofit communities in our region –- we will get through these uncertain and challenging times. Thank you for your creative and passionate work that informs our efforts to continue delivering significant social benefit to Oregon and southwest Washington communities.
We will keep providing you with updates as we continue our way through uncharted waters. We also pledge to challenge ourselves to look for more and new ways to provide support to our nonprofit partners. We welcome your suggestions and wisdom.
Doug Stamm
CEO, Meyer Memorial Trust
Please note: The comment period on this entry has expired
Thank you MMT--sound thinking, planning and communication. Much appreciated. We must remain optimistic and will work even harder in our communities . . . it will be done! Thanks for all you have done over many years, and into the future--Sam in Salem
Thank you, very much, for initiating your Operating Funds Grant Program. After more than 25 years working mostly in the non-profit sector I know what a difference your support in this way could mean to small to medium organizations. I am encouraged by your response to these challenging times!
I so appreciate that you have started offering support for operating funds. I believe that preserving an existing, effective program already operating in a community is a sound investment.
I appreciate about your strategic thinking and areas you are focusing upon; shared resource planning, operating support for human services, and limiting capital support unless the campaign is in the final phase. As Jeff said above, the opportunity of this time is to reflect on how we as a sector operate and see how else we might do our work. Practice collaboration vs. talk collaboration to strengthen our communities as a whole. Thanks MMT, we look forward to working together in this way in southern Oregon.
As always, thanks for being so transparent!
I am particularly heartened by your support for efficiencies, mergers, etc. One of the few bright spots of our current situation may be that we finally see a few of our redundant organizations merged...but it will only happen if pressure from funders and the economy are able to overcome egos, turf issues, and transaction costs.