October 15, 2009 | Read Time: 2 minutes
For the past decade, Jeremiah Program, a charity in Minneapolis, has provided services such as transitional housing and job-readiness training to help single mothers with young children break the cycle of generational poverty. It is the kind of organization one would expect to shrink in a down economy because competition for private money to finance human services has grown so intense.
Instead, Jeremiah’s board voted in February to create a national board and expand to more cities.
Jeremiah’s decision runs contrary to economic trends, but it is not alone. Several entrepreneurial, grass-roots charities are also bucking the tide and growing.
Some have the backing of philanthropists. Others plan to use money from fees charged to clients to support growth. Still others hope to tap new federal programs for grants. They all have research or newsmedia coverage touting their work — publicity they hope will propel them to the front of the queue as they seek help from donors.
A couple were even spotlighted in June by President Obama, in a speech promoting his new Office of Social Innovation — which, powered by a $50-million Social Innovation Fund, will support creative approaches to solving social ills.
All believe their approaches are sound and merit duplication. All know that any new host community will need strong leadership and local financing to make the programs work.
They face big challenges. The Giving USA Foundation reported in June that charitable giving dropped 5.7 percent last year after inflation, the first drop that steep in half a century. And that’s before the economy dived further in 2009.
Right now, expansion is the exception, not the rule, says Jeffrey L. Bradach, co-founder of the nonprofit Bridgespan Group, which offers management consulting to charities. The exceptions are driven by growing human-service needs due to the recession and a focus on programs with demonstrated success.
“There are a set of funders and different parts of government that are saying, as we hone in on what is really essential, we have to make sure we are betting on what works,” Mr. Bradach says. “That is leading to some opportunities for some organizations.”
Following are some examples of grass-roots charities that are plotting their expansion, despite the challenges posed by the faltering economy.
