Sidewalk, a nonprofit dedicated ending homelessness in Thurston County, has sad news

Mary Beth Harrington, CVA

You probably have heard the sad news of the closing of a local nonprofit – Sidewalk. Ironically, I had a note on my calendar to feature Sidewalk in this column this month, I didn’t realize how accurate I would be. According to CauseIQ Sidewalk’s mission was to end homelessness in Thurston County by combining volunteerism and intensive community engagement with data-driven, evidence-based methods to accomplish their mission. I may not have featured Sidewalk, but they received several mentions, such as in January when I listed local organizations that support the homeless, as well as an article listing organizations that partner with Interfaith Works. The point is this was not some small start-up (in the business we call that emerging) nonprofit. In fact, according to Charity Navigator, Sidewalk scored an 80% or a three-star rating on their charity scorecard. Cause IQ indicates that Sidewalk, which was incorporated in 2015, had eight employees, and on their latest tax filing from December 2001 (this is normal), a breakdown of their finances reveals:

• Total Revenue - $546,933
• Total Expenses - $470,533
• Total Assets - $110,341

The Life of a Nonprofit

In March 2022, Phil Owen, the co-founder and executive director of Sidewalk, announced his plans to step down from his position and leave Thurston County to be closer to family. The Board of Trustees started the search for a new Executive Director. This would have been a very pivotal and anxious time for the nonprofit. Most nonprofits are started by individuals who see a need in the community and possess the passion and vision to give birth to the organization. In our industry, we label this the “birth” stage because it is very similar to giving birth to a baby – the founder is responsible for feeding, clothing, and everything that is necessary to keep the organization alive. Following the birth stage is the “child” stage, whereby the founder is still responsible for keeping the organization alive, but like a grade school-age child, the organization now has other benefactors mostly friends of the founder, who also support the organization.

Following the child stage is what we consider the most volatile stage for a nonprofit, the “adolescent” stage. Just like an adolescent, the organization is growing, taking risks, and starting to have friends who may not necessarily have been friends of the founder. Often at this point, a founder may either try to have a tighter grip on the organization or may move on to let the organization grow without them. Ultimately, we want every nonprofit to grow into an “adult” organization that can sustain itself.

The Death of a Nonprofit

What we do not often talk about is that a nonprofit has a life expectancy and at some point “dies.” Like a person, this could happen for several reasons, such as “natural causes” (the nonprofit fulfilled its original mission) or “disease” (which often means the organization died from within), or “malnourishment” (which often indicates some kind of financial crisis). According to the article in The Olympian, the four current board of directors for SideWalk decided to shutter the organization after “careful consideration,” This closure announcement came a month after the nonprofit asked supporters for donations amid a “critical financial crisis,” according to a July 7 Facebook post and donation webpage. According to the webpage, the donation drive had a $63,000 goal, but only $15,080 was raised. A message to supporters on the webpage described the situation in stark terms.

A Nonprofit’s Rebirth

When a nonprofit closes, it is not like a family business that may pay off its creditors and hang a closed sign on the door. There are specific procedures and rules that a nonprofit board of directors must follow to ensure that they are in compliance. I recently facilitated a retreat for an organization in Idaho that was contemplating closing, and they were astonished when we discussed the procedures from the National Council of Nonprofits. (I think they decided to make another effort to stay open in part to avoid going through the process). One of the most critical aspects is to identify the nonprofit (s) that will receive any assets remaining from the closing organization. Often this recipient organization is the one that was identified for this when the closing organization was first incorporated. According to a news release, SideWalk indicated it intends to transition its programs to the nonprofit Community Action Council of Lewis, Mason, and Thurston Counties and other community partners.

Resources

The life and death of a nonprofit is a scary and exhausting process. If you work at a nonprofit or are on the board of a nonprofit organization and would like more information on this, feel free to reach out to me. I am happy to help, and my advice is always free. You may also check Warning signs that an organization may be dying.

Happier News School is starting soon, so The Little Red Schoolhouse Project (Red Schoolhouse) will be hosting its big fundraising drive on Friday, August 11 as part of Radio Day on Mixx 96. According to one of their board members, Connie Fischer, Red Schoolhouse has provided backpacks, and school supplies to school districts in Thurston County, including North Thurston, Olympia, Tumwater, Yelm, Tenino, and Rochester since 1991. This year they plan to provide for 3000 students. “Our motto is ‘back to school with pride.’ We are committed to providing for families in need so children can begin the school year with their basic needs for school” says Fischer. Red Schoolhouse is a local nonprofit organization under the fiscal sponsorship of Family Education and Support Services (that means they do not yet have their incorporation designation from the IRS). “We fundraise throughout the year and receive help from local rotary clubs, women’s clubs, foundations, banks, and businesses throughout the county,” says Fischer. “Some businesses provide matching funds for dollars raised on Radio Day. You can tune into KXXO Mixx 96.1 all-day Friday, August 11 to hear interviews, information, and total dollars raised for the children of Thurston County.” While these financial donations allow Red Schoolhouse to purchase items in bulk, they do accept donated items as well. “We have donation bins in Heritage Bank locations, OBee Credit Union, FESS, St. Michaels Church, and at KXXO Mixx,” says Fischer. For more information on the items needed, check their website, click here.

Volunteer Opportunity

The City of Tumwater is trying to keep recyclable and compostable items discarded at their events out of the landfill. To do this effectively, they are seeking volunteers (21+ in age) to be Recycling and Compost Attendants at Tumwater Brewfest on Saturday, August 19th from 1:00 to 8:00 pm at the Tumwater Valley Golf Course. According to Alyssa Jones Wood, Sustainability Coordinator, you can either volunteer for a shift or the whole day. “This volunteer role is key to helping people learn how to properly sort their waste.” If you are interested in volunteering at this or future Tumwater events, please contact Alyssa Jones Wood at ajoneswood@ci.Tumwater.wa.us or (360) 754-4140.

Soliciting your ideas

If you know of a nonprofit that is doing something great, celebrating a success, needs some outstanding volunteers, or hosting an event, let me know! This column (aside from a little education) celebrates nonprofits!

Mary Beth Harrington, CVA (Certified Volunteer Administrator) lives in Tumwater. She travels the country speaking at conferences and to individual organizations articulating issues facing nonprofits. Send your ideas to her at MaryBeth@theJOLTnews.com