"WHAT CHALLENGES DO CHICAGO AREA NONPROFITS FACE TODAY?"

Lisa Davies, Grants Manager from Casa Central
responds to the question posed in a recent issue of eDevelopments:

”I think the newest and biggest challenge in this area is the disappearance of general operating funds. With the United Way of Metropolitan Chicago's recent complete transition from a base allocation (unrestricted funding) system to program restricted grants, a primary source of unrestricted dollars for many agencies is gone. The Chicago Community Trust is also mostly against general operating grants. The Donors Forum recently conducted a survey of both grantors and recipients in the Chicago area, reporting that what grantees need the most is general operating funds, but that grantors are less and less likely, able, or willing to provide unrestricted support. As philanthropic vehicles and recipient agencies continue to move in opposite directions on this issue, Chicago's nonprofit agencies will be handcuffed by the restrictions on their dollars and unable to fill gaps in their programming and administrative budgets. This threatens tiny start-up and huge multi-million dollar agencies alike. ”