I read an article by Shelly Banjo in the Wall Street Journal talking about how the current budget crunch that is so prominent in New York. It discussed how nonprofits are being hit extremely hard, but behind the scenes, New York legislators are asking that nonprofit managers find some way to keep their doors open. Now, when I read this, I thought why would these companies come to New York State for money unless they really need it. New York is very inefficient so companies try to avoid the state whenever possible. Now, in tough financial times, this is when charitable contributions seem to disappear so more and more people need the services these nonprofits provide. With an increase in demand, and a decrease in funding, these companies are going to the state for capital. And without fail New York state is dead broke. The state spends way more than it takes in so of course there is always a net loss. Now, when companies needed help from the state, there was no help in sight because the state, unlike what it asks of residents, cannot balance a budget.
The biggest thing I got from this article was that New York state didn't seem to realize that these nonprofits that they are essentially closing cannot operate on such a small budget, by those in Albany have no regard for the money they spend. They just spend, and as much as I hate to say this, but it is possibly because it is not their money.
http://foundationcenter.org/pnd/news/story.jhtml?id=296400031
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