How Inflation Affects Local Nonprofits
Simplified: United States the inflation rate is 8.6%, affecting the cost of living from groceries to gas bills. This price increase is causing some Sioux Falls families to turn to local resources for help, but these nonprofits and support organizations are also grappling with the increased expenses.
why is it important
- As costs increase, more and more people are turning to local organizations for help. The helpline received 600 additional calls for food assistance and 300 additional calls for housing assistance in May compared to the previous year.
- Rising costs are also hitting organizations that are finding needs exceed donations. Places like The Banquet, Feeding South Dakota, Bishop Dudley House and Union Gospel Mission are finding that they have to buy more products themselves to meet the needs of people who come to see them.
- Feeding South Dakota, for example, has experienced a 20% increase in the need for food distribution services statewide, said Stacey Andernacht, director of marketing and communications.
“I was at a mobile food distribution a few weeks ago and helped register people,” Andernacht said. “And there were a few people who said they had never done this before and never thought they would have to.”
What is the impact of inflation on nonprofit budgets?
Because everything from food to fuel costs more, regular operating costs are also increased in addition to food or supply costs.
Madeline Shields, executive director of Bishop Dudley Hospitality House, said their running costs were rising on top of other expenses.
“We’re seeing the effects of rising prices for everything,” Shields said. “Our electricity has increased. Our natural gas has increased.
- The cost of lunch service for Bishop Dudley Hospitality House went from around $160-$200-$250.
- The shields said supply chain issues also make it more difficult for them to complete repairs in a timely manner.
Feed South Dakota also had to increase their grocery budget to cope with inflation and the increased need for food aid.
“It has impacted our financial budget because we find ourselves buying more food than we might have in the past and at this inflated cost that exceeds our budgeted amount to get food. food,” Andernacht said. “So we are able to have food to take away, but we see the impact on our budget line.
What can I do to help?
Donating supplies or your time to local nonprofits can help lighten the load.
“They may only need our services for a few months, or they may need them for longer,” Andernacht said. “The reality is that we don’t need to know why they need our services. We’re just happy to be able to provide them with the food they need so they can take things home, fill their cupboards and feed their family.