June 7, 2010

Strengthening the Safety Net

Report Reveals Bay Area Funders’ Response in Economic Downturn

SAN FRANCISCO, CA (Monday, June 7, 2010) – The Safety Net Funders Network today released its report, Strengthening the Safety Net: Bay Area Philanthropy’s Response and Early Lessons. The report details the recession’s impact on families and individuals in the Bay Area and provides new perspectives and strategies for collaboration, setting priorities, public policy, and funding. 

While many economic indicators point to a recovery, families in the Bay Area are still suffering its effects. In 2010, the Bay Area will lose another 20,000 jobs, spiking unemployment to 10.5%, and housing foreclosures are on the rise. The demand for safety net services continues to intensify, calling funders to action. "Given the tumultuous economy, organizations are regrouping and rethinking how to continue mission related services. This report identifies important trends and strategies so that funders can make the most of scarce resources," said Denise Martin, Program Director, Public Policy, Advocacy, and Community Health at The San Francisco Foundation. The full report is available here [2.7 MB PDF].

The report highlights a number of Bay Area grantmaking trends:

• Safety net grantmaking has increased in response to the recession.
• This reflects a shift in priorities in independent, community, and corporate foundations whose grantmaking budgets have overall decreased.
• $170 million was granted to 1,500 safety net nonprofits from 2008 through November 2009. Safety net nonprofits are defined as providing human services, housing and shelter, agriculture and food, and mental health and crisis services.
• Grants mostly ranged from $25,000 to $50,000, with some $100,000 grants, and a few of more than $1 million.
• Community foundations granted the largest proportion of safety net grants in California, distinguishing the state from national trends, where independent foundations played a larger role.
• Of the safety net nonprofits, housing and shelter received the most funds, and mental health services and information and referral received the least.
• Funders mostly provided project funding and restricted support. Core operating support or grants that are given to organizations for general support was the second most common category of funding. 
  

Collaboration, public-private partnerships, and systems change were identified by the report as keys to successfully strengthening the safety net nonprofits, and the public agencies that support them.

The Walter and Elise Haas Fund, the Y & H Soda Fund, the United Way of the Bay Area, and The San Francisco Foundation launched the Safety Net Funders Network in September 2009. Bank of America, S.D. Bechtel, Jr. Foundation, Blue Shield of California Foundation, The California Endowment, S. H. Cowell Foundation, Episcopal Charities, East Bay Community Foundation, Evelyn & Walter Haas, Jr. Fund, Jewish Community Federation, Kaiser Permanente Northern California, Koret Foundation, Dean & Margaret Lesher Foundation, Thomas J. Long Foundation, Philanthropic Ventures Fund, Charles & Helen Schwab Foundation, Silicon Valley Community Foundation, and the Women’s Foundation of California participate in the Network.

Download the full report here [2.7 MB PDF].