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Nonprofit Newswire | New Nonprofits Now?

Rick Cohen
February 22, 2010
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February 18, 2010; Randolph Reporter | Welcome to the new world of nonprofits amidst state budget deficits. In response to Governor Chris Christie’s proposed cuts in K-12 education funding to close budget gaps in New Jersey, citizens in suburban Randolph Township, New Jersey, have revived a dormant nonprofit, the Randolph Education Foundation, to begin raising money for “innovative programs” and “high quality education” in the Township’s public schools. The reborn nonprofit held a wine and cheese reception last week. Randolph will feel a share of the Governor’s nearly $500 million slash in education funding toward eliminating a $2.2 billion deficit that he says he inherited from his predecessor, Jon Corzine. But Randolph’s nonprofit—and its public schools—may not be as hard hit as those of other communities. Randoph is a well off suburb, with estimated household and family income levels in 2008 nearly three times as high as the average in the U.S. and a poverty rate 1/5 the nation’s. What the Randolph nonprofit demonstrates is a twofold challenge to nonprofits in this budget climate: they may find themselves increasingly challenged to raise money from charitable and philanthropic givers to substitute for lost government revenues, and the nonprofits trying to help poorer communities may find themselves competing with and perhaps losing to the Randolph Townships of the world.—Rick Cohen

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ABOUT THE AUTHOR
Rick Cohen

Rick joined NPQ in 2006, after almost eight years as the executive director of the National Committee for Responsive Philanthropy (NCRP). Before that he played various roles as a community worker and advisor to others doing community work. He also worked in government. Cohen pursued investigative and analytical articles, advocated for increased philanthropic giving and access for disenfranchised constituencies, and promoted increased philanthropic and nonprofit accountability.

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