By Michael Carrier and Mike W. Ray Southwest Ledger
Oklahoma nonprofit experts are predicting that COVID-19, the coronavirus, is likely to make charitable organizations across the state financially ill for an extended period of time, endangering the work they do to help people in all walks of life.
“Is the virus going to impact charities? The short answer is ‘Yes’. This has really hit like a tornado,” said Dan Billingsley, Vice President of External Affairs for the Oklahoma Center For Nonprofits in Oklahoma City.
Billingsley said the virus effect would a be two-folded monster for those organizations that both give and receive funds to help the state’s individuals, families and a wide variety of service organizations.
“Basically, all corporations that regularly give have already given,” Billingsley said. “But individuals are beginning to hold back. That means foundations are going to have less money to give and that could mean a lot of trouble. “There’s going to be some nonprofits closing their doors or laying off staff within the next 30 days,” he predicted.
“There’s absolutely potential (for the virus) to force some charities to close permanently,” he added. “The ramifications could still be hitting in a year to a year-and-a-half when we’ll see (charitable organization) mergers.”
The impact will spread, Billingsley said, across the board from giving to universities and sports to hospitals, social service agencies, mental health organizations, food banks and other entities.
“I’m most concerned about arts organizations,” he added, noting that the Oklahoma City Arts Fair, the annual event that draws thousands of people to the capital city each year, already has been canceled.
“The Arts Fair getting canceled means there is a monetary loss to the community, to artists and vendors of probably $15 to $25 million,” Billingsley said.
Lauren Ellis, president and chief executive officer of the United Way of Southwest Oklahoma, echoed Billingsley’s assessment. Ellis agreed that times are going to get tough for operations such as hers.
“Our board has approved setting aside an initial $100,000 from our operating reserves for emergency support and we’re asking our previous recipients to fill out a basic needs impact survey to further help,” she said. Ellis said the United Way Board already has approved $5,000 in emergency response funds to seven non-profits that are providing a range of services.
Those seven are the Lawton Food Bank, C. Carter Crane Shelter for the Homeless, The Salvation Army, Hearts That Care Volunteer Health Clinic, the Center For Creative Living, Family Promise of Lawton and Catholic Charities.
Former Marlow State Representative Joe Dorman, who now serves as the CEO of the Oklahoma Institute for Child Advocacy (OICA), said the virus’ impact “has been devastating for us.”
“We had to cancel two major fundraisers because of this.” The OICA is a nonprofit that survives solely on donations and grants. It helps protect Oklahoma’s children who are growing up amid poverty, violence, abuse and neglect. Dorman said the plan to allow nonprofits to apply for Small Business Association loans “helps, but it has to be paid back. If, instead, in the future the loan can be converted into a grant, that would be a relief,” he said.