$1million from Lyda Hill will seed The Dallas Foundation’s Safety Net Fund

DALLAS (December 14, 2008) – Recognizing the need for emergency help in a bleak economy, The Dallas Foundation has created the Safety Net Fund to assist local nonprofits, with a lead gift of $1 million from Lyda Hill. The foundation hopes to raise an additional $1 million by the end of the year. The fund already has $406,000 in additional pledges, thanks to a $130,000 commitment from The Dallas Foundation’s Unrestricted Fund, $100,000 from Meadows Foundation and other gifts.

“For nonprofits, an ailing economy is doubly hard: first, donations are down. Second, the number of people in need of services goes up. So just at the time these services are needed most, they are least able to provide them. Our goal is to ensure that worthy nonprofits – and the families they help – do not experience disruptions of service,” said Mary Jalonick, president of The Dallas Foundation.

The local unemployment rate rose to 5.5 percent in October, higher than the statewide rate of 5.4 percent. Home foreclosure rates are lower here than in other regions, but they’re still high by historical standards. By the end of the year, more than 22,700 Dallas County homes will have been scheduled for foreclosure auction, a 13 percent increase from 2007.

The Dallas Foundation polled a dozen Dallas-area charities and found that all were experiencing more requests for help and increasing operational costs. These agencies expected their revenue to, at best, remain flat or, at worst, decline significantly compared to 2007. Some examples of the issues facing these nonprofits:

• One Dallas agency, which offers emergency aid and operates a free medical clinic, has had a 110 percent increase in the number of individuals receiving food between February and September. The organization’s 2009 budget anticipates a $100,000 decline in donations.
• A domestic violence shelter has had an 8 percent increase in requests for help. The agency turned away 376 people this year because of lack of funds and predicts a $300,000 deficit.
• A major provider of childcare and childcare referrals has watched increasing numbers of low-income families lose childcare subsidies because parents have lost jobs.
• Another nonprofit group, which works in East and Southeast Dallas providing emergency aid, adult education, and after-school programs, has seen calls for assistance triple since September.

“My philanthropic focus has always been about science and science education,” said lead donor Lyda Hill. “But I knew in times like these, we cannot neglect the basics. Securing social services for people in need is extremely important right now and I’m glad to be able to help.”

The foundation will begin accepting grant applications for the fund in January 2009. Applications will be reviewed as they arrive, and successful proposals will be funded within 30 days.

“The individuals and families that need help need it now,” Ms. Jalonick said. “They are our neighbors and friends. We’re going to work fast – but carefully – so agencies can provide that help without delay.”

Nonprofits may apply for funds to help pay:

• Salaries of full-time or part-time employees
• Occupancy costs
• Transportation
• Program services
• Capital expenditures related to direct services
• Other needs related directly to maintaining operations or meeting clients’ critical needs

Safety Net Fund grants are not intended to pay for conferences and meetings, event underwriting, bonuses or other discretionary expenditures.

To apply for a Safety Net Fund grant, agencies must be recognized as 501(c)(3) nonprofit corporations serving Dallas County residents. Applicants will be required to submit a written proposal and supporting documents to verify their tax-exempt status, extraordinary financial need and long-term organizational stability. A panel composed of Dallas Foundation Governors, staff, donors, and outside volunteers will review all proposals, conduct appropriate research and site visits, and recommend awards.

“The difference in giving to the Safety Net Fund versus directly to an individual nonprofit is the vetting process,” said Laura Smith, The Dallas Foundation’s director of community philanthropy, who will administer the grants. “Our panel will have a high-level view of the nonprofit landscape in Dallas and will select the agencies that truly need it most.”

For nonprofits wanting to apply for a grant, applications will be on The Dallas Foundation’s website – dallasfoundation.org – beginning January 2.

To contribute to the Safety Net Fund, please contact Mary Jalonick at The Dallas Foundation: 214-741-9898 or mjalonick@dallasfoundation.org.

About The Dallas Foundation

Established in 1929, The Dallas Foundation is Texas’ oldest community foundation. The Dallas Foundation serves as a resource, leader and catalyst for philanthropy by providing donors with a flexible means of making gifts to charitable causes that enhance our community and beyond. For more information about The Dallas Foundation, please visit dallasfoundation.org.