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August 2006
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Buffalo News Editorial Wilmers speech signals new urgency for consolidating charitable agencies When the person who gives the most in personal and corporate charitable donations in this region warns there are too many non-profit agencies for its wealth to support, a lot of people better listen and act. M&T Bank Chairman Robert G. Wilmers, long known for his candor and prescient view of problems, said recently: "Our region continues to have a great many agencies - yes, I'll say it, too many agencies - with similar, even identical missions." "You owe it your best effort to chart a business model which provides the most services for the most citizens - and which this region can afford and sustain," Wilmers told non-profit leaders attending a local conference. It's a clear equation. There are more agencies - 1,870, up 11 percent since 2002 - than there is wealth to support them and their current budgets. This region supports 16.3 non-profits per 10,000 people, while the national average is 14. That of course raises the question of need. Does a poor Rust Belt region have more problems and more people who seek help? In part, that may be so. But Wilmers' clear point is that people are over-served, that there are agencies duplicating agencies and that givers are over-taxed. Consolidating agencies would provide more direct aid to clients, less overhead and administrative costs and provide a tighter safety net. He's right. The United Way of Buffalo and Erie County has been a leader in showing non-profits how to consolidate, or at least save money by coordinating services like accounting, technology, advertising, printing and the like. People Inc. has recently merged other similar operations under its umbrella. In large part, continued and more aggressive United Way direction on this issue is needed. As the numbers show, consolidations need to accelerate. The responsibility for making these changes resides with the non-profits' boards of directors. Few chief executives can be expected to say their agency should fall on its sword, though in some cases strong leaders might work out ways to make that as painless as possible. Whoever does it, action is needed. |
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