Oregon's Nonprofits Face a Tough Challenge

Oregon's nonprofits are in a tight spot. They help people with education, health, jobs, and other essential services. But now, they're under a lot of pressure.

The Growing Gap

Federal money is drying up. Local governments can't keep up with their promises. At the same time, more people need help because housing is expensive and jobs are hard to find.

The gap between what people need and what nonprofits can provide is getting bigger. Governor Tina Kotek and other leaders are trying to fix this. They're working on housing, mental health, and other services. But even with their help, the situation is still tough.

Nonprofits have to make hard choices. They might have to cut services, lay off staff, or even shut down. This has already happened to dozens of nonprofits in Oregon.

Rural Areas Hit Hardest

This problem is especially bad in rural areas. There are fewer services to begin with. When one nonprofit struggles, it affects everyone.

The issue isn't just about money. It's about how these organizations are set up. Most nonprofits focus on providing services, not on running a business. They handle things like payroll, human resources, and technology with a small team. This makes them fragile. Burnout is high. Compliance risks are growing. Leadership turnover is increasing.

A Solution: Shared-Services Consortiums

There's a solution: shared-services consortiums. This is where nonprofits work together to share administrative tasks. Each organization keeps its own board, mission, and programs. But they share things like human resources, finance, and data systems. This makes them stronger and more resilient.

This idea isn't new. The Claremont Colleges in California do this. Seven independent colleges share services through a jointly governed entity. They keep their own identities but benefit from shared resources. This lowers costs, strengthens systems, and makes them more resilient. Oregon's nonprofits can do the same.

Benefits of Shared Infrastructure

Shared infrastructure has many benefits. It lowers costs, improves support for staff and clients, and reduces the impact of staff turnover. It also allows nonprofits to coordinate referrals, reducing service gaps. For funders and public agencies, consortiums offer accountability, scale, and continuity.

The Need for Leadership and Investment

This kind of collaboration needs leadership and investment. Foundations, policymakers, and public agencies must prioritize funding for shared infrastructure. They need to recognize that coordination is now a necessity, not a luxury.

A Path Forward

If Oregon wants its investments in housing and behavioral health to succeed, the nonprofit delivery system must be strong. Shared-services consortiums offer a realistic, near-term strategy to stabilize the sector. This way, essential care, opportunity, and support can endure, even as conditions grow more challenging.