Coronavirus In Minnesota: Nonprofits With Larger Staffs Fail To Qualify For Much-Needed Aid
MINNEAPOLIS (WCCO) -- Despite the massive Federal stimulus efforts to help businesses to pay their workers, there's no lifeline for many of Minnesota's most well known non-profits. Groups like Catholic Charities, Fraser and St. David's provide critical help to children and families dealing with a host of needs.
A loophole in the federal assistance doesn't extend financial assistance. Many of the non-profits have already laid off staff as their services shut down. And they're pressing the U.S. Congress for a much-needed fix.
On any given day hundreds of children would be filling St. David's classrooms, receiving help with physical and emotional needs.
"We have early childhood education, autism services, group care, mental health services," Julie Sjordal, CEO of the mid-sized nonprofit, said. "No revenue in the door means we don't have the cash to pay employees or pay our bills."
Like others, St. David's has idled services and laid off a third of its staff. With between 500 and 750 employees, they don't qualify for financial grants through the recently passed CARES Act.
"There's nothing in terms of federal grants that will help rescue the nonprofits that are serving the most vulnerable children families and adults with disabilities in town," Sjordal said.
Currently there are more than 100 mid-sized nonprofits which fall into the same "donut hole." These are charitable groups that assist children and adults with their critical mental and physical needs.
The Minnesota Council of Nonprofits is pressing for congressional help, to ensure the next phase of assistance throws a badly-needed lifeline.
"Many of them have modestly compensated employees and not robust balance sheets so it's hitting these groups hard and quickly," the council's executive director Jon Pratt said. "These are essential community resources and we can't afford to lose them."
St. David's says it has funds to hang on only into May. If the federal help does not come through it fears losing both staff and the crucial programs that so many families depend on.
