Nonprofit Staff Go Without Pay

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November 22, 2010; Source: WSOCTV.com | In Hickory, N.C., Exodus House, an agency that helps ex-cons transition back to society finds itself unable to pay its staff. Over the past two years, according to the executive director, Susan Smith, the agency has also lost $350,000 in revenue and closed two of three facilities. Says Smith, “We have, every day, tried every idea that we could think of to cut cost and raise revenue.” One of the problems, according to this article from WSOCTV, is that a part of the organization’s revenue comes from the working residents—and with unemployment fewer residents are working. Exodus House has to raise $75,000 by year’s end but it is not clear in what condition that will leave the agency. In a recent survey by GuideStar, a full 8 percent of nonprofit respondents said they felt in imminent danger of closing. As NPQ watches the news reports as this year draws to a close, we are noting what kinds of operations may be placing themselves in this category.—Ruth McCambridge

  • Deidre Badu

    I know the feeling. We are in the same situation at Hindsight 20/20, Inc. We never had paid staff members and depend on working clients. It is a tough situation and getting money from sponsors is requiring me to get 1 million dollars of liability insurance. The ironic thing about this is we provide housing for WOMEN!