Global economic downturn threatens local programs

Many Centretown associations have been left without program funding after the Community Foundation of Ottawa announced it is not in a position to run its grant-making program in 2009.

The philanthropic organization, which helps hundred of groups in the city each year, attributes its financial plight to poor market returns on its investments.

 It will not be accepting applications to the competitive grants program until conditions approve.

In the meantime, countless community associations and centres are faced with a scramble for patronage that – for some – will be a matter of survival.

“This is absolutely a significant setback,” says Jackie Rai, executive director of the Vesta Recovery Program for Women, which received close to $10,000 from the foundation to support addiction-recovery programming

“Without this funding, we will have to cut our direct service hours of staffing.”

Vesta was one of more than 470 groups to receive support from the foundation in 2007.

That year alone, the foundation provided more than $5.4 million to the Ottawa area. At the end of September 2008, it had already given about $4 million to community causes.

Since its inception in 1987, the foundation has come to manage 600 funds contributed by Ottawa philanthropists and pooled for investment to generate earnings for the good of the community. It currently has just under $90 million invested.

Barbara McInnes, president and CEO of the Community Foundation of Ottawa, says her organization’s troubles were brought on by a series of circumstances related to the present economic downturn.

“The markets are down, so the investment portfolio isn’t generating any returns,” McInnes has said in interviews with local media.

“People are giving less, they haven’t stopped giving but they are giving much less; and the needs of the community are increasing.”

Such a state of affairs poses a catch-22, as poor economic conditions call for increased support, but with more limited means and resources.

Bruce House is a community-based organization providing housing, compassionate care and support for people living with HIV and AIDS.

Last year, the program received a strategic impact grant of $15,000 from the Community Foundation of Ottawa to aid in case management.

J.J. Koornstra, executive director of Bruce House, acknowledges that receiving grants has been an important part of his organization’s work.

“We recognized that the finding of funding would be a problem when the economic downturn became quite evident, and this will certainly have an impact on local foundations,” says Koornstra.

“It doesn’t surprise us greatly, but it is a concern in terms of the fact that we’re depending on grants within the next fiscal year," he says.

McInnes is confident in her organization’s investment strategies and expects the Community Foundation of Ottawa to bounce back in 2010.

However, its presence will be sorely missed in the coming year by organizations in Centretown – and throughout Ottawa – in need of financial support.

“We hope people will continue to be generous in the community, because the community will need philanthropy this year more than ever.”