Despite the problems that have hit many of San Francisco's LGBT-related nonprofits in the past year, some – while not completely trouble-free – appear to be faring better than others.
What those organizations seem to have in common are diverse funding sources and exercising frugality in a time of economic turmoil.
AIDS Emergency Fund, which provides cash grants to people living with disabling HIV/AIDS so that they can pay rent and other expenses, has increased the total amount of money it distributes to clients.
For AEF's 2005 tax filing, which covers March 2005 through February 2006, grants distributed were about $1 million. That had grown by approximately $300,000 for 2010. Every year, the number of grantees ranges from about 2,200 to 2,400.
Asked about what's made the difference for his agency compared to others, AEF Executive Director Mike Smith said, "I think we're very lucky," and the agency has always had "very diverse sources of revenue," so that during "bad times like this, one thing might not do okay, but something else does." Funding sources include the Bare Chest Calendar and the Bob Ross Foundation. (The foundation, named for the Bay Area Reporter 's late founding publisher, is a separate legal entity from the newspaper.)
The agency has had to make adjustments, though. It is spending more on fundraising than it was five years ago. Smith said that "isn't the ideal situation, but if we're going to maintain our level of service to clients, we had to work a lot harder to come up with the money the last few years."
One way to gauge the efficiency of an agency is to look at the proportion of expenses allotted for program services versus management, fundraising, and general costs. Together, the latter are typically known as indirect expenses. Generally, nonprofits aim for 20 percent to 25 percent or less.
For 2009, about 20 percent of AEF's expenses were for indirect costs. That's a higher number than what the agency had for 2005, but Smith indicated that the increased management and fundraising costs have been worth it.
"The board made a conscious decision we should spend more on administration and finance so we had a good grip on the business, and we were being good stewards of the resources," he said.
AEF shares offices, a board of directors, and staff resources with the Breast Cancer Emergency Fund, of which Smith is also the executive director.
AEF and other organizations have "all been getting less government funding each year, and raising new dollars has been difficult," Smith said. "No one wants to cut client services, so the easiest thing to do is to keep paring away at your back office, administrative and support staff."
However, he said, some agencies "cut it too close," and they're not able to keep up in areas such as billing. "They don't have the support staff to man their finances appropriately, and it just blows up in their face," he said.
Not 'people with money'
Another agency that appears to be doing well is AIDS Housing Alliance/San Francisco.
According to the nonprofit's tax filing for 2005, revenue was about $35,000. That had grown to approximately $232,000 for 2009.
Among other things, Brian Basinger, director of AHA/SF, attributes the growth to adding new programs. He also said he's tried to create an organization "where I don't have to be afraid of what rich people think about the work that we do. ... In the housing world, and in this city, there are sort of times when we're at cross-purposes with people with money."
Basinger's total compensation for 2009 from AHA/SF was just over $8,000; he has long been critical of the highs salaries of many nonprofit executives and advocates more money be spent on client services.
Asked how he lives on that, Basinger quipped, "I'm a hooker on the side, honey." He said he also gets help from Social Security Disability Insurance.
About 16 percent of the AHA/SF's costs for 2009 were related to indirect expenses, according to the tax filing. Basinger said that figure means, "We're really efficient, and that disabled people with HIV and AIDS really can do the work, and we can do an effective job with absolutely the most efficient use of the resources."
He added, "I think what it is also is we're poor, we're broke, do you know what I mean? We're used to getting by on nothin' in our personal lives," and "that creates a culture, in the organization, of frugality."
"We get our office supplies from the dollar store and from the Goodwill," he said.
The agency's budget is about $400,000. AHA/SF serves from 550 to 600 households a year, Basinger estimated, and because of the economy, demand for services "is quite strong," he said.
Jose "Pepe" Vazquez, 44, is a person living with AIDS. He said Basinger helped him get housing. He said he'd probably have to live on the streets or rely on shelters otherwise.
"It's kind of scary. ... It makes you think about when it's going to be our agency's turn," he said about other organizations that are struggling to survive.
Vazquez said he tries to be positive, but dealing with issues like doctor's visits and finances is difficult.
"I'm not that young anymore, so it's hard to concentrate and to try to think about a lot of stuff," he said.
Successful street fair
Folsom Street Events, which produces the famous Folsom Street Fair and other parties, has also remained strong, despite the rough economy. This year's street fair is September 25; the Up Your Alley fair, a warm-up to the main event, takes place July 31.
In November 2010, the organization presented checks totaling $326,161 to beneficiaries, and Executive Director Demetri Moshoyannis has said everyone received full payment.
Last year, the suggested donation for entrance to the Folsom Street Fair was $7, but "you don't even have to pay that," Moshoyannis noted.
In an interview last week, Folsom Street Events board Treasurer Thomas Pscheidt said Folsom officials have noticed in recent years per-person donations and tip bucket contributions "are a little down."
However, asked about the impact of the recession on his organization, Moshoyannis said, "All the early indicators are that we're going to have a pretty good year, at least on par with last year, and the reason for that is our sponsorships are on par with last year, if not a little higher." Early ticket sales to the associated parties the organization produces are also in line with last year, and may be better, he said.
Sponsorships this year should be around $140,000 in cash, according to Moshoyannis, who added in an email that his nonprofit also receives "tens of thousands" of in-kind support, such as free advertising and donated products.
The sponsorships cover Folsom Street Fair, the Up Your Alley fair, and sometimes dance parties, he said.
Moshoyannis put the current budget for Folsom Street Events in the range of $1.1 to $1.2 million. According to its 2010 audit, 15 percent of its costs are for indirect expenses, he said.
In an interview last year, Moshoyannis said when adding new events, organizations should "Do it based on what the community's interests allows you to do. You don't just create a new event because you think it's a good idea, or a few board members around the table think it's a good idea. Investigate and research what the community actually wants."
The success of the main street fair also depends partially on the weather.
"If it rains, God forbid, on Folsom day," the income won't be there, said Pscheidt.
He also said challenges can be political. "The Board of Supervisors can blink and all of a sudden we have 58 new regulations to deal with," he said.