Gas prices play havoc with not-for-profit agencies

Published 4:52 pm Saturday, July 5, 2008

NATCHEZ — Nationwide gas, energy and food prices are at record highs. The increases are unavoidable for families and businesses, but the purse strings pull even tighter for some local groups.

Not-for-profit agencies can’t raise prices. They can’t easily cut services. And they are likely already pinching pennies.

The Stewpot, which provides meals for residents who cannot provide for themselves, has seen increases in both grocery cost and energy cost. However, so far, the agency has been able to sustain the increase without cutting services.

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Louis Gunning, director of The Stewpot, said that thanks to donations and volunteers his organization is doing well.

“I’m feeling really good right now about how we are operating,” Gunning said. “We are serving more people than ever and can do that because of the support we get from the community that we need.”

The key for The Stewpot has always been keeping cost low. To do that they have only one salaried employee and depend greatly on volunteers to fill other duties.

One of the most important roles volunteers fill is delivering meals to shut-ins who are unable to come in to the dining room for meals.

Gunning said without volunteers absorbing the cost of delivery his agency would suffer. But he has no reason to think anything will change.

“The thing about it is that even as their costs increase they never complain,” Gunning said. “They are very devoted to volunteering.”

Lamar Braxton, CEO for AJFC Community Action Agency in Natchez said the budget picture isn’t as sunny for his organization

One program operated by the agency has already depleted its entire fuel reimbursement budget for the year.

The money used to reimburse Head Start workers for family visits has been completely spent even though the agency is only halfway through their fiscal year.

The fuel money for buses used in the Head Start program is also going faster than expected with an estimated 60 percent of the budget having already been spent.

“Our year is from Feb. 1 until Jan. 31, so we have more than 50 percent of the program year left and only about 40 percent of the budget left,” Braxton said.

Angie Brown, chapter manager of the Natchez Chapter of the Red Cross, said the fuel reimbursement cost has also been the biggest impact the organization has seen. The Red Cross reimburses volunteers mileage when they respond to emergencies.

The money for that comes directly from the disaster fund.

“We use the disaster fund for clothing, meals, lodging, medication replacement and whatever other services we provide,” Brown said. “The increase we have seen in fuel reimbursement has left that fund a little low.

“If we have a house fire in Amite County or one of our other counties we are going to go,” Brown said. “That is something we don’t have control over. Regardless of what it is going to cost us, we are going to go and service those people.”

The Natchez Chapter of the Red Cross serves Amite, Jefferson, Wilkinson and Adams County regularly and sometimes is needed in Franklin County.

At AJFC Braxton said his agency doesn’t have the luxury of operating after the funding is gone.

“With the increases we have seen, we don’t know how we are going to get through the end of the year,” Braxton said. “We can’t overspend. When you spend all the money you’ve got, that’s it.”

“Any increase we get on one side we try of offset somewhere else but there comes a time when you can’t offset it anywhere,” Braxton said. “We’ve never had an increase in fuel costs like this. Usually it is much more gradual.

“It is going to be a real challenge for us to try to operate for the rest of the year.”

At The Stewpot, Gunning still has time to worry a bit.

He has already started implementing ways to keep costs down for his delivery volunteers. In the past, Gunning said there were a lot of delivery routes but he has been able to reduce that number by allowing people who eat in the dinning room to deliver meals to friends and family members that are eligible.

Still, some delivery routes are around 20 miles in length.

Luckily, the agency currently has enough delivery drivers that volunteers are only responsible for one day of delivering.

“We have more volunteers than ever and you would be surprised by how many regular donations we get from people,” Gunning said.

For Brown and the Red Cross, the emergency response vehicle the agency recently received will cut down on mileage reimbursement for volunteers. The vehicle will have operating cost such a fuel and maintenance but Brown said the agency is exploring ways to offset those expenses.

Braxton said if his agency runs out of money, he basically has no where else to turn.

“All they tell us in risk management is not to over obligate yourself.”