As more people face the fallout of the country’s current financial crisis, some may turn to safety-net services supported by organizations like the United Way.
However, as resources dry up, governments and private businesses are finding it more difficult to make donations to help support those who cannot help themselves. A recent donation to the United Way of Silicon Valley hopes to stem the tide of community programs running out of money.
The recently-announced grants, which total over $1.5 million, were donated by the Applied Materials Foundation and the David and Lucile Packard Foundation. The grants will be used to help bolster nonprofit agencies in Santa Clara County in California.
"More people need help with the basics like feeding their families and paying their rent, yet donations are down in most cases," Carole Leigh Hutton, president and CEO of United Way Silicon Valley, said. "These grants will go toward helping people survive these tough economic times as well as making sure programs are available when people need them."
The Applied Materials Foundation made a one-time donation of $1 million, which will help establish the Urgent Community Response Fund. The fund will aid the United Way’s Assistance Network and a number of other agencies, which will work to provide basic services such as shelter and food.
Another $530,000 was donated by the David and Lucile Packard Foundation. The grant will be used to help the Nonprofit Effectiveness Fund, which will provide education and grants to nonprofits wishing to look into administrative strategies. Doing so may help nonprofits deal with waning donations.
The grants come at a difficult time for nonprofits in Santa Clara County. According to the United Way, nonprofits lost $13 million in government funding through July 1 of this year. As the county deals with a $230 million shortfall, nonprofits may feel a further pinch in the coming months.
Overall, 59 percent of not-for-profit organizations in the county have experienced problems with getting money.
