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Nonprofit leaders urge state-funded technical assistance to stabilize small organizations
Summary
Representatives from Common Good Vermont and other nonprofit leaders told the Commerce & Economic Development Committee that private philanthropy and shared services have helped but that state funding for technical assistance would make capacity-building sustainable and prevent sudden closures of small nonprofits.
Nonprofit leaders, including a Common Good Vermont representative and Jesse Bridges (identified in the transcript as CEO of the Inebriated Northwest Vermont), told the Vermont House Committee on Commerce and Economic Development that a combination of membership services, fiscal sponsorship and shared back-office services can help small nonprofits survive—but that sustainable, state-supported technical assistance is still needed.
"We represent about 50% of the GDP," Jesse Bridges said in testimony describing the sector's economic footprint (claim attributed to witness testimony). Witnesses described Common Good Vermont as a program of United Way of Northwest Vermont that relies largely on fee-for-service revenue and has launched a membership program to diversify income. The organization said it has about 200 paying members while noting there are roughly 6,400 nonprofit entities in Vermont, many with limited budgets.
Panelists described several strategies: shared services collaboratories, fiscal sponsorship programs to host smaller initiatives, training and certificate programs in nonprofit management and fundraising, and targeted legal support. Witnesses said private philanthropy has been essential for start-up capacity but is insufficient for long-term, statewide technical assistance. Several committee members and witnesses said the state should consider funding mechanisms that mirror supports available to businesses and municipalities.
Committee members asked how Common Good balances service to very small local groups with support for larger statewide organizations; witnesses said the organization connects small nonprofits to consultants and partners and aims to tailor assistance by need rather than adopt a one-size-fits-all approach.
A committee member referenced a bill cited in testimony as "S 357" (as referenced by witnesses); witnesses said that related proposals are moving through legislative channels but did not ask the committee to take an immediate vote during the hearing.
