In a decision described as “unthinkable a month ago,” YMCA of Greater Charlotte leaders on Monday announced further staffing cuts due to COVID-19.
YMCA officials will extend previously-announced furloughs, cut pay for roughly 200 employees still working and eliminate 55 positions that include senior leadership, YMCA CEO Todd Tibbits said in a statement.
“It is impossible to overstate the deep impact that membership and program cancellations have had on YMCAs across the country, including ours,” Tibbits said.
Charlotte nonprofits are responding to a rapidly-shifting financial and operational landscape during the COVID-19 pandemic, forcing some to furlough or lay off staff, adapt to remote work and try new ways to reach clients. Others are learning how to work without in-person volunteers and adhere to social distancing.
The YMCA announcement comes less than two weeks after leaders confirmed furloughs for 3,700 employees. Tibbits said the organization has encouraged members to convert monthly dues to donations after it closed its branches and camps March 17.
“Nevertheless, the fact remains that extended closures have significantly impacted our financial forecast and forced us to make decisions that seemed unthinkable a month ago.”
Financial hits
Nonprofits of all sizes and specialties are hurting, said David Heinen, vice president for public policy and advocacy for the North Carolina Center for Nonprofits.
“Like (for profit) businesses, nonprofits are obviously struggling to try to provide services remotely, to shift what they do while recognizing that a lot of the revenue streams have suddenly gone down or disappear altogether,” he said.
In a survey of nearly 700 North Carolina nonprofits last month, nearly three-quarters said COVID-19 has had a significant effect in their operations. Cancellation of events and programs, disruption of services and budgetary concerns were the top three areas of impact.
For nonprofits who rely on ticket sales, memberships or other in-person activities, the closures have been brutal.
Unlike responses to natural disasters like hurricanes or wildfires when people in unaffected areas are often quick to donate to nonprofits, this public health crisis has hit everyone to some degree, Heinen said.
“Everyone — not just in North Carolina but across the country and around the world — is impacted by this,” he said.
“Many people are uncertain of their own financial position. It’s not they don’t care enough or that they don’t want to invest in the work of nonprofits, but it’s a tougher time to give.”
YMCA officials said they tried several routes to reduce expenses, including renegotiating credit lines, lease agreements and debt payments, seeking tax credits and deferrals, and salary cuts for senior leadership.
An employee assistance fund is available, and Y officials said they are working with Harris Teeter and Lowe’s to find temporary, part-time work for furloughed staff.
Tibbits said the Y’s programs and membership make up almost 90% of revenue and branch closures “have made it impossible to sustain its current workforce and structure.”
Other prominent nonprofits such as Daniel Stowe Botanical Garden and Discovery Place, have announced similar large-scale furloughs or layoffs.
As thousands of workers lose jobs and income, the demand for employment services from Goodwill Industries of the Southern Piedmont is steady —even growing —leaders say. But stay-at-home orders have closed the two dozen retail stores that are the main economic driver to keep programs free.
“Now, probably more than ever… people are really looking for opportunities to continue to build their skills and for support,” said Chris Jackson, president and CEO of the local Goodwill.
But since closing its stores in late March, Goodwill has laid off about 85% of its 950 employees, Jackson said, a mix of full-time and part-time staff mostly working in the second hand stores or positions connected to retail operations.
Jackson said they were able to move its programs online in just a few days, and have added additional resources for people affected by COVID-19.
He said his staff will listen to state and federal guidelines to decide when to re-open stores and get employees back to work.
“We will get on the other side of this,” he said. “It’s more a matter of how quickly, and what do we need to have in place to make sure we’ve got a safe environment for our team and our shoppers.”
For leaders at Charlotte-based Veterans Bridge Home, the decision to cancel its spring fundraising luncheon was obvious. But, it’s left an estimated $60,000 hole in the budget, Executive Director Blake Bourne said.
“It’ll hurt, no question, it’ll definitely make a difference,” Bourne said. “But we’re confident in our financial position right now and we’re confident in the work ahead of us.”
In addition to helping veterans and their families secure housing and employment, the organization emphasizes building social capital.
“When you’re used being in the military, you’re constantly surrounded by people,” he said. “You’ve got that very tight knit fabric of camaraderie and social capital.”
Bourne said the organization has found digital alternatives to in-person gatherings, and reminds people to check in on each other by phone or video call.
Economic stimulus
Local and federal relief is beginning to appear, though demand far outpaces supply. The CARES Act, the $2 trillion federal stimulus Congress passed in response to COVID-19, includes provisions for nonprofits.
Nonprofits with up to 500 employees were eligible for forgivable loans through the Paycheck Protection Program to keep staff on the payroll, though officials said last week initial funding had been exhausted and the program was not accepting new applications.
Congress is expected to approve additional money to replenish the fund.
In Mecklenburg, more than $6 million has been awarded to nonprofits through the COVID-19 Response Fund, managed by the United Way of Central Carolinas and Foundation for the Carolinas.
Allocations from the fund, which has raised more than $16 million to date, focused first on organizations whose missions address “basic needs,” including food assistance and housing, said United Way CEO Laura Yates Clark.
“We wanted to get money into the community as quickly as we could could for those organizations that we knew were on the front lines and needed the resources immediately,” she said.
The second round of funding went to nonprofits working in education, employment and mental health, as well as additional awards for shelter and food assistance.
Clark said calling the situation “unprecedented” feels inadequate.
“What has struck me is different from recessions in the past …. the escalation of needs has been so dramatic,” she said. “Part of what we’re trying to accomplish with the fund is helping our nonprofits be able to deliver those services in this time of escalating need. “
The latest grant period for the COVID-19 Response Fund opened Monday and closes May 1.
Shifting operations
Trish Hobson, executive director for The Relatives youth shelter in Charlotte, uses one word to describe the current situation: “Stress.”
“It’s been really stressful, especially at first to keep the programs running and everything sanitized because we really need to be open for the kids,” Hobson said. “They often don’t have anywhere else to go.”
Hobson said the thousands of volunteers who usually bring meals, hold workshops to teach new skills and take clients on field trips aren’t allowed to help right now.
“They connect our kids to people in our community,” she said “We definitely miss them.”
The Relatives has not had to cut any of the 35 county-funded employees, some working from home now. Hobson said the board approved a $2 an hour pay increase. The organization also received $35,000 from the COVID-19 Response Fund.
“Our clientele is in a more desperate situation and I’m so grateful we’re able to stay open to help,” she said.
This work was made possible in part by grant funding from Report for America/GroundTruth Project and the Foundation For The Carolinas.