From the December 15th edition of the Times Colonist:It would be a great loss if valuable agencies such as the B.C. Schizophrenia Society had to slash services -- or even close -- as an unintended consequence of a provincial government funding policy and the economic downturn.To read the entire article, click here.
One of the Liberal government's policy shifts after the 2001 election was a move from block funding to non-profits across the province to targeted program funding.
Where the government had reviewed an organization's overall operations and decided on an appropriate level of public funding, it adopted a new approach.
Non-profits could apply for money to cover the direct costs of specific programs. For anything else, they were on their own.
There are merits to the approach. The government has more control on how the money is used and can assess value for money spent more directly. It can set priorities, rather than leaving it up to the local non-profit to assess community needs. And ministries know where their contribution is being spent.
But the shift also created problems. Non-profits' core expenses -- rent, basic administration staff, fundraising, newsletters and programs not covered by the province -- were no longer funded. The expenses were necessary to maintain the organization, but the funding formulas didn't acknowledge that reality.
And the agencies lost the flexibility that allowed them to react to emerging needs by shuffling funding. If there was a spike in the need for services for seniors suffering from schizophrenia, for example, in the past the society could have shifted money from another program. That was no longer allowed by government.
Most rose to the challenge by seeking donations or holding fundraisers to cover core expenses. That was difficult, because donors -- like government -- respond more enthusiastically to appeals for money to support specific programs.
Also see:
Sinking into debt, health care non-profits fight for survival
Image courtesy of the British Columbia Schizophrenia Society (click on the image to enlarge it).

