Vital Signs. Indicators of the Nonprofit Safety Net for Children in the Washington, D.C., Region ERIC C. TWOMBLY AND JENNIFER CLAIRE AUER

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1 Indicators of the Nonprofit Safety Net for Children in the Washington, D.C., Region ERIC C. TWOMBLY AND JENNIFER CLAIRE AUER THE URBAN INSTITUTE MARCH 2005

2 Indicators of the Nonprofit Safety Net for Children in the Washington, D.C., Region Eric C. Twombly Jennifer Claire Auer March 2005 Community-based nonprofits spent $1.3 billion in 2000 on children in the District of Columbia and its 10 surrounding Maryland and Virginia jurisdictions. From child care and early childhood education programs for preschoolers to afterschool and computer literacy programs for teenagers, these organizations are vital. A snapshot of the region s thousand-plus child-serving nonprofits can be framed in many different ways. Our ranking shows the ratio of nonprofits to the number of children in the jurisdiction. The concentration ranges from six groups for every 1,000 kids in Falls Church to less than one group for every 2,000 kids in Prince William. These rankings help us understand how each jurisdiction compares with others in the region. Taken together, these ratios form a baseline to measure local nonprofit resources for children. The following pages explore the fiscal health of the social safety net for children in the Washington, D.C., area. Nonprofits financial strengths and vulnerabilities can belie the concentration ranking. In fact, Manassas, at number 7, and Fairfax, at number 8, had the financially strongest nonprofit child and youth sectors in Yet, three of the four jurisdictions showing fiscal stress also ranked low on resource concentration Loudoun, Prince George s, and Prince William counties. Prognosis: The vital signs are not good. Nearly one-third of child and youth nonprofits lost money in 2000, one year before the 9/11 attacks on the Pentagon and the World Trade Center. The attacks exacerbated the decline in the D.C. regional economy and likely increased the fiscal stress on nonprofits. One organization for every 1,000 kids might slip as a baseline.

3 1 Falls Church, VA No. 1: With six nonprofits for every 1,000 kids, Falls Church has more concentrated child and youth services than elsewhere in the region. The 15 nonprofits spend $13.5 million on 2,444 kids. 1st 1st 1st 3rd 1st equity balance 6th Median revenue growth, Number of nonprofits serving children Percentage of population who are children Percentage of children in poverty In Falls Church Social welfare 67% Education 13% Youth development 20% Revenues $226,000 $322,000 Total assets $107,000 $144,000 Private donations 41% Client fees and contracts 34% Government grants 16% Other 9% Falls Church In Falls Church Median operating margin $ 6,000 $ 9,000 operating margin Median net assets $70,000 $95,000 net assets In Falls Church Revenue Program spending Total assets Total liabilities 39 10

4 2 Washington, D.C. No. 2: Though resource concentration is high, the nation s capital suffers the region s highest poverty rate 32 percent of its kids live in poverty. The 347 nonprofits spend $503 million on 114,332 kids. 2nd 9th 5th 6th 7th equity balance 2nd Median revenue growth, Number of nonprofits serving children Percentage of population who are children Percentage of children in poverty In D.C. Social welfare 53% Education 28% Youth development 19% Revenues $514,000 $322,000 Total assets $224,000 $144,000 Private donations 32% Client fees and contracts 45% Government grants 18% Other 5% In D.C. Median operating margin $ 13,000 $ 9,000 operating margin Median net assets $144,000 $95,000 net assets Washington, DC In D.C. Revenue Program spending Total assets Total liabilities 8 10

5 3 Alexandria, VA No. 3: Another D.C. area city plagued with poverty, Alexandria has a high ranking for child resources that is somewhat diminished by providers poor fiscal health. The 40 nonprofits spend $54 million on 21,532 kids. 3rd 8th 4th 7th 11th equity balance 5th Median revenue growth, Number of nonprofits serving children Percentage of population who are children Percentage of children in poverty Social welfare 69% Education 13% Youth development 18% In Alexandria Revenues $306,000 $322,000 Total assets $389,000 $144,000 Private donations 24% Client fees and contracts 50% Government grants 18% Other 8% In Alexandria Median operating margin $ 6,000 $ 9,000 operating margin Median net assets $122,000 $95,000 net assets Alexandria In Alexandria Revenue Program spending Total assets Total liabilities 33 10

6 4 Arlington, VA No. 4: An influx of multicultural kids and a child poverty rate of 10 percent challenge the county s many services. The 45 nonprofits spend $56 million on 30,944 kids. 4th 5th 3rd 9th 5th equity balance 10th Median revenue growth, Number of nonprofits serving children Percentage of population who are children Percentage of children in poverty In Arlington Social welfare 42% Education 27% Youth development 31% Revenues $168,000 $322,000 Total assets $ 67,000 $144,000 Private donations 15% Client fees and contracts 61% Government grants 11% Other 13% Arlington In Arlington Median operating margin $ 3,000 $ 9,000 operating margin Median net assets $37,000 $95,000 net assets In Arlington Revenue Program spending Total assets Total liabilities 5 10

7 5 Frederick, MD No. 5: Few children in poverty and many providers put Frederick ahead of the region s other Maryland counties. The 63 nonprofits spend $27 million on 53,764 kids. 5th 3rd 8th 5th 9th equity balance 11th Median revenue growth, Frederick Number of nonprofits serving children Percentage of population who are children Percentage of children in poverty In Frederick Social welfare 52% Education 11% Youth development 37% Revenues $152,000 $322,000 Total assets $ 42,000 $144,000 Private donations 20% Client fees and contracts 48% Government grants 10% Other 22% In Frederick Median operating margin $ 3,000 $ 9,000 operating margin Median net assets $36,000 $95,000 net assets In Frederick Revenue Program spending Total assets 4 27 Total liabilities 1 10

8 6 Montgomery, MD No. 6: The size, scope and fiscal health of the nonprofits serving Montgomery s children reflect the county s affluence. The 220 nonprofits spend $366 million on 220,580 kids. 6th 4th 2nd 2nd 6th equity balance 7th Median revenue growth, Number of nonprofits serving children Percentage of population who are children Percentage of children in poverty In Montgomery Social welfare 40% Education 34% Youth development 26% Revenues $488,000 $322,000 Total assets $176,000 $144,000 Private donations 19% Client fees and contracts 62% Government grants 7% Other 12% Montgomery In Montgomery Median operating margin $14,000 $ 9,000 operating margin Median net assets $97,000 $95,000 net assets In Montgomery Revenue Program spending Total assets Total liabilities 31 10

9 7 Manassas, VA No. 7: Though sparse, Manassas providers are on solid financial footing. The 14 nonprofits spend $5.7 million on 13,604 kids. 6th 6th 9th 1st 2nd equity balance 1st Median revenue growth, Number of nonprofits serving children Percentage of population who are children Percentage of children in poverty In Manassas Social welfare 65% Education 14% Youth development 21% Revenues $208,000 $322,000 Total assets $ 84,000 $144,000 Private donations 36% Client fees and contracts 28% Government grants 26% Other 10% Manassas In Manassas Median operating margin $17,000 $ 9,000 operating margin Median net assets $68,000 $95,000 net assets In Manassas Revenue Program spending Total assets Total liabilities 94 10

10 8 Fairfax, VA No. 8: The greatest concentration of children in the region pushes this affluent county down in the proportional ranking. The 179 nonprofits spend $170 million on 250,043 kids. 8th 7th 7th 4th 3rd equity balance 3rd Median revenue growth, Number of nonprofits serving children Percentage of population who are children Percentage of children in poverty In Fairfax Social welfare 38% Education 30% Youth development 32% Revenues $272,000 $322,000 Total assets $138,000 $144,000 Private donations 27% Client fees and contracts 52% Government grants 5% Other 16% Fairfax In Fairfax Median operating margin $12,000 $ 9,000 operating margin Median net assets $107,000 $95,000 net assets In Fairfax Revenue Program spending Total assets Total liabilities 2 10

11 9 Loudoun, VA No. 9: Even with the lowest child poverty rate in the region, a rapidly growing population stretches Loudoun s resources. The 37 nonprofits spend $21 million on 50,436 kids. 8th 2nd 6th 10th 8th equity balance 4th Median revenue growth, Number of nonprofits serving children Percentage of population who are children Percentage of children in poverty In Loudoun Social welfare 32% Education 24% Youth development 44% Revenues $128,000 $322,000 Total assets $ 70,000 $144,000 Private donations 37% Client fees and contracts 2% Government grants 39% Other 22% Loudoun In Loudoun Median operating margin $ 4,000 $ 9,000 operating margin Median net assets $33,000 $95,000 net assets In Loudoun Revenue Program spending Total assets Total liabilities 30 10

12 10 Prince George s, MD No. 10: Prince George s may be the wealthiest majority-black county in the nation, but with 10 percent of its kids living in poverty, resources are spread thin. The 117 nonprofits spend $69 million on 214,522 kids. 10th 11th 10th 8th 10th equity balance 8th Median revenue growth, Number of nonprofits serving children Percentage of population who are children Percentage of children in poverty In Prince George s Social welfare 43% Education 23% Youth development 34% Revenues $187,000 $322,000 Total assets $ 82,000 $144,000 Private donations 16% Client fees and contracts 54% Government grants 16% Other 14% Prince George s In Prince George s Median operating margin $ 3,000 $ 9,000 operating margin Median net assets $45,000 $95,000 net assets In Prince George s Revenue Program spending Total assets Total liabilities 1 10

13 11 Prince William, VA No. 11: At 50 percent below the region s median of one provider for every 1,000 children, this outlying county ranks last. The 37 nonprofits spend $11 million on 85,432 kids. 11th 10th 11th 11th 4th equity balance 9th Median revenue growth, Number of nonprofits serving children Percentage of population who are children Percentage of children in poverty In Prince William Social welfare 41% Education 5% Youth development 54% Revenues $133,000 $322,000 Total assets $ 76,000 $144,000 Private donations 23% Client fees and contracts 38% Government grants 6% Other 33% In Prince William Median operating margin $ 2,000 $ 9,000 operating margin Median net assets $61,000 $95,000 net assets Prince William In Prince William Revenue Program spending Total assets Total liabilities 50 10

14 Location of Nonprofits Serving Children and the Number of Nonprofits per 1,000 Children in the Washington, D.C., Region, by Jurisdiction Frederick Nonprofits per 1,000 Children (age 0-17) Less than More than 2 Nonprofits Serving Children and Youth Montgomery Loudoun District of Columbia Falls Church Fairfax Manassas Prince George's Prince William Arlington Alexandria

15 Glossary Children. Residents in the Washington, D.C., region age 0 to 17. Child and Youth Nonprofits. Local 501 (c)(3) public charities that focus on children s education, youth development, or social welfare. D.C. Region. The District of Columbia; Frederick, Montgomery, and Prince George s counties in Maryland; Arlington, Fairfax, Loudoun, and Prince William counties in Virginia; and the independent cities of Alexandria, Fairfax, Falls Church, Manassas, and Manassas Park in Virginia. To ensure robustness and statistical validity of the analysis, the study combines Fairfax and Fairfax City data, as well as Manassas and Manassas Park data. Operating Margin. Total revenue minus total expenditures. For the purpose of this study, a nonprofit with a positive operating margin is in the black, while one with a negative margin is in the red. Net Assets. Total assets minus total liabilities. Net assets serve as a proxy for the net financial worth of a nonprofit organization and can be positive or negative. Data Sources al Nonprofit Database, a data file created for an ongoing study of nonprofit child and youth groups in the Washington, D.C., region, was used to produce the organizational findings in this booklet. Child population and poverty data were obtained from the U.S. Bureau of the Census.

16 THE URBAN INSTITUTE 2100 M Street, NW Washington, DC THE URBAN INSTITUTE 2100 M Street, NW Washington, DC Copyright 2005 Phone: Fax: pubs@ui.urban.org For more information on nonprofit resources for children in the Washington, D.C., metropolitan area and this project, see the Urban Institute web site or contact Eric C. Twombly, etwombly@ui.urban.org or Jennifer Claire Auer, jauer@ui.urban.org. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.

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