Nonprofit Blog

Welcome to the Nonprofit Blog hosted by the professionals at Armanino, CPAs & Consultants. This blog is set up to inform nonprofit organizations of trends, rule changes, best practices and free educational offerings that we have built to support nonprofit organizations. Our professionals bring you their insights from an accounting and organization perspective to help nonprofits reach their goals. We support our clients with advice, direction and best practices.

Tuesday, May 15, 2012

AIDS Funding Cuts in San Francisco

Posted by Armanino Nonprofit Team

San Francisco is recognized nationally as having one of the best models of care for people living with AIDS and HIV and those at highest risk of infection. Approximately 15,523 people in the city are living with the virus, many of them for years or decades. One reason is due to San Francisco’s effective system of care. Unfortunately, San Francisco’s ability to continue this level of care and prevention is under risk due to upcoming funding cuts. The city is set to lose about $8 million in federal AIDS funding this year and another $10 million next year. These cuts represent the biggest one-time cuts ever.

About 40 programs run by the city and San Francisco nonprofits rely on funding from the Ryan White Care Act and the Centers for Disease Control. Combined, the city received about $41.8 million from these two programs during the current fiscal year ended June 30. The money is used for services such as legal counsel, food delivery to the homebound, dental and medical care, mental health and substance abuse counseling, housing assistance and hospice care. Leaders of AIDS care organizations are hoping that the city will step in to fund the money lost from these two programs.

A lesson all nonprofit leaders should learn from this is the importance of diversifying your organization’s revenue sources. Becoming too dependent on one source of funding puts your organization’s ability to carry out its mission at a significant risk when that funding is cut. Nonprofit leaders should seek a revenue model that produces funding from several sources, i.e. federal and state funding, foundation grants and other private contributions, program fees, etc.



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