The rising cost of living and financial instability have brought stress to residents of Orange County, who rely on non-profit organizations (NPOs) to provide necessary assistance. However, limited resources and structural challenges make it difficult for many NPOs to keep up with the growing demand. On March 18, the first Orange County NPO Needs Assessment Report was held at the Beckman Center on the Irvine campus of UC San Diego, aiming to guide charitable donations to where they are most needed.
The Samueli Family Foundation and the Orange County Community Foundation (OCCF) collaborated to release the assessment report, with participants including Charitable Ventures and UC Irvine. Through comprehensive research and investigation, with insights from 607 NPO leaders and 13 focus group discussions, the report assessed the strengths, needs, and challenges faced by non-profit organizations. Key factors hindering service provision included inability to pay wages, limitations on professional development, skills gaps, and operational challenges.
The three keynote speakers were Lindsey Spindle, President of the Samueli Family Foundation, Shelley Hoss, President and CEO of OCCF, and Anne Olin, President and CEO of Charitable Ventures. Spindle stated, “When you invest over a hundred million dollars annually, relying solely on intuition is not enough. We need comprehensive data and insights to become informed investors who can improve the community.”
Firstly, NPOs need to recruit and retain capable staff, provide ethical and professional training to equip them with skills in areas such as government contracting and labor laws to maintain compliance, innovation, and efficiency in a complex environment. Over seventy percent of respondents indicated staff shortages, with employees having to shoulder multiple responsibilities, while half said they are unable to offer competitive wages due to personnel costs not being included in management fees.
Secondly, NPOs require critical infrastructure to deliver effective services, but many organizations face challenges such as long-term underfunding, outdated facilities, financial instability, technological and affordability challenges. More than half of respondents reported difficulties in obtaining loans, and 19% stated a lack of cash reserves.
Thirdly, collaboration between non-profit organizations, funders, and government agencies is crucial. For instance, collaborating with city housing authorities and county agencies is necessary to provide housing for over a hundred youths emancipated from foster care. Eighty-six percent of respondents recognized the importance of collaboration but cited structural and financial barriers.
Furthermore, restrictive project-based funding constraints hinder infrastructure development and long-term planning. Eighty-two percent of respondents found it extremely challenging to secure multi-year funding, and sixty-seven percent strongly believed that unrestricted funding would benefit the staff.
The report urges philanthropists to reassess their funding strategies, focusing on multi-year grants and supporting general operations. Hoss stated, “Funding constraints severely impede NPOs’ ability to fulfill their long-term mission.”
Since assuming her role in 2000, OCCF’s sponsorship for scholarships and educational grants has grown over twenty times, with annual donations increasing from $5 million to a hundred million dollars, making it the seventh most active charitable organization in the U.S., with total donations exceeding $1 billion.
Established in 2007, Charitable Ventures, managed by Anne Olin, oversees funds exceeding $12 million annually, playing a role in enhancing immigrant services, multi-tenant housing, family resources, and healthcare. “NPO leaders know how to drive change,” Olin expressed, “By focusing investments on priorities, Orange County’s NPOs will become stronger, more resilient, and better serve the community.”
The Samueli Family Foundation, founded by Henry and Susan Samueli in 1993, focuses its charitable interests on science, technology, engineering, mathematics (STEM) fields related to their professions, medicine, and Jewish culture. In 2024, the foundation will allocate 60% of its resources to Orange County.
Spindle also serves as Chair of the Audit and Governance Committee for the Skoll Foundation and previously served as CEO of the Jeff Skoll Group. In 2020, the foundation allocated $200 million to address the economic, health, and social impacts of the pandemic.
After nearly three years of research, the Samueli Foundation decided to take action to address the challenges faced by non-profit organizations. The foundation pledged $15 million, with $5 million allocated for scholarships and training opportunities for the executive teams of 100 NPOs, $5 million for the “Build OC” fund to support capital projects of non-profits, and another $5 million annually for the “Breakaway Fund” to help NPOs overcome financial challenges without traditional financing constraints.
Spindle explained that the latter two initiatives will launch on May 1 on the Samueli Foundation website, with the first cohort of leadership enhancement trainees already registered. “This new, accessible funding will enable NPOs to more swiftly address their operational obstacles,” she added, noting that funding sizes will be determined based on feedback.
Orange County, the sixth most populous county in the United States, is home to nearly 3.2 million multi-ethnic residents. The Asian community encompasses various cultures and histories, with distinct needs and challenges. Spindle expressed delight in assisting residents, noting that many first-generation immigrants receive services at Orange County public libraries supported by them.
In Orange County, Asians comprise around 23.7% of the population. Olin shared that many investment projects by Charitable Ventures target minority groups, yet the Asian community, comparatively, receives less attention and could benefit from direct outreach.
Hoss mentioned that OCCF has been collaborating with the Asian and Pacific Islander communities in recent years and continues to seek out community organizations that would benefit most from charitable support. With unique needs, including education, the economy, extracurricular education, mental health, healthcare, and immigration status, OCCF aims to better understand and support these aspects. She identified housing and homelessness needs in Orange County as surpassing other areas.