Where is the Bailout for Charities Serving Children and Families?

Teresa De Crescenzo, Executive Director of GLASS Youth and Family Services, wrote an excellent opinion article for the Los Angeles Times where she asks “Where’s the bailout for non-profits?” She continues, “The stock market is in free fall, financial organizations are being bailed out and the Detroit automakers may yet get financial help from Washington. But what about those of us in the non-profit world? Where’s our bailout?” I salute Ms. De Crescenzo for expressing what many of us who devote our lives to helping others feel.

The State of California is enmeshed in their own fiscal meltdown it appears that it will not be in a position to help non-profits for many years. In fact, the exact opposite has been and is occurring. As the Executive Director of a major residential treatment center for children in foster care and families, my Board and I struggle to give abused, neglected and abandoned children the treatment that they need and deserve. Despite the fact that the State has failed for years to cover the costs of these comprehensive services, we continue to treat thousands of children and their families each year with a system of funding that has only given Hillsides an increase of 5% after more than five years of flat funding---not even an annual cost of living increase.

In effect, charities like Hillsides and the clients we serve have been burdened almost to the breaking point while we as a society are willing to bailout corporations who are now experiencing the aftermath of their own mismanagement and greed. Where is the equity for those children who are unfairly being accused of depleting state funds due to an increase in demand for the free lunch programs, as reported in the Pasadena Star-News on December 4? Where is the fairness for those children who are suffering due to the cuts in educational support or whose families have had their child care subsidies slashed?

If I sound angry and frustrated, I am. Everyday, I see firsthand the suffering and challenges people face—particularly the children in foster care who have no voice. Out of a commitment to create safe places for children and families living in Los Angeles County, the Board of Hillsides continues to take the position that rather than cut vital services, our charity is using our limited financial reserves to manage this downturn in the economy. Our reserves are not an endless source of revenue and, frankly, I do not know how much longer we will be able to continue doing this. A non-profit’s only alternative when funding is not available is to turn desperate people away, as we have no bailout to fall back on.

If the choice is between sitting on the sidelines willing to maintain status quo or letting children continue to suffer the ravages of child abuse or go without breakfast and lunch or providing assistance to charities, the answer seems simple to me. While many of you might not like the idea of tax increases, I believe this is the only option left open to the State of California. We’ve tried budget cuts with disastrous human consequences, now it is time to consider “Whoever does this on the least of thee does it to me.”