social services bellefaire front view
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History of Social Service Non-profits and Government Funding
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A large increase in social service philanthropy occurred during the Great Depression on a community level. “These agencies provided services that ranged from institutional care for juvenile delinquents, orphans, or the aged, to boys clubs, summer camps, counseling, and emergency assistance (fuel, food, clothing).” (Grønbjerg) These essential agencies and nonprofits grew in numbers but remained small in size and underfunded for some time.
In the 1960s, federal aid became substantial and about 4.4% of the public social welfare budget started to go into social service organizations. There are disputes of how much of social service philanthropy is government-funded, an accepted estimation, made in 1999, is shown by the following diagram:
Around this boom of funding and social services agencies, Cleveland's own Bellefaire JCB grew in size and reoriented its mission to tend to children’s mental health, rather than just functioning as an orphanage like it had for decades prior. Now they provide a range of mental health services and social services to children and their families. Similar to many social service agencies, a large portion of Bellefaire's funding comes from government entities at a local, state, and federal level by means of the juvenile court, children’s services, the mental health board, and Medicaid.
One reason some nonprofits sought after government/public funding is that private donors started to lose interest in consistently funding projects (Reingold). In an interview with Bellefaire’s Executive Director, Jeffery Lox, Lox discussed how when the economy is doing poorly, people tend to give less. In this case, an agency's income of charitable dollars may run low. This is one of the benefits of having other, bigger sources of funding, such as public dollars, to maintain the agency as best as possible when philanthropic dollars run low.
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Challenges Posed to Social Service Philanthropy by Politics and Government
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It has been argued that human services philanthropy is the most effective way to help others because it withdraws these services from the political sphere. So, at first glance it may seem like social service nonprofits are most likely not susceptible to challenges that may occur at the hands of the government and politics.
But, as seen on the previous page, a substantial amount of the funding going into social service sector of philanthropy is from public dollars and government grants. In his article "Social Services and Government," Reingold states that, "these organizations utilize federal public funds to pay for staff, implement training and technical assistance, and support fundraising efforts, among other basic organizational functions," when referring to the well-known organizations such as Habitat for Humanity and Teach for America.
Impact of the Current Administration
In 2017, it was thought that nonprofits of all kinds would run the risk of losing funding during the new Trump administration as a good chunk of funding, especially to social service nonprofits, comes from public dollars. This fear mostly came from the uncertainty associated with President Trump's intentions with regards to policy at the beginning of his term.
Executive Director of Bellefaire JCB (whose main campus is pictured), Jeff Lox, says when structuring Bellefaire's programs the agency tries to align the programs to be as neutral as possible to prevent any major impact on the functioning of Bellefaire as a result of party control changing. By maintaining a neutral mission in most of what an agency does, they can keep in programs and missions that can potentially appeal to the agenda of both sides.
Obstacles such as restructuring program to be neutral is an unfair task that nonprofits shouldn't necessarily have to face, because they are not 100% government controlled, or government entities at all for the most part. But, due to the large about of public dollars on a federal, state, and county level, this is something nonprofits, especially those in the social service sector often must consider.
The opinions of other nonprofit CEO's nationally regarding predictions of the impact Trump's presidency would have can be found in the following linked Forbes article.