PHOENIX — Arizona nonprofits still rebounding from COVID-19 challenges are now facing unusually high gas prices.
As of April, a gallon of regular unleaded costs on average $1.60 more compared to one year ago. That means filling up a typical passenger van used by many nonprofits costs about $50 more to fill up.
“Transportation is the key”
“You can’t do any of this type of work without transportation. Transportation is the key,” said Joe Eriquez, founder of Heart For the City, a nonprofit in Glendale. The organization shuttles less-privileged kids to a private school during the week and to gyms across the West Valley on weekends for sports leagues.
The nonprofit’s motto is “Just Show up.” Most children in the program live in single-parent homes and don’t have readily available rides.
Eriquez is trying to raise $20,000 to get the organization through the rest of the summer for fuel costs alone.
“You don’t just stop doing what you do because of gas prices. Kids still need to be loved. Kids still need somebody to walk life with them,” he said
Operating on annual contracts
One of the problems is that many charities are operating on gas reimbursement contracts that were written last summer before gas prices spiked, said Megan Word, Chief of Community Engagement for Foundation for Senior Living.
“This fuel increase is obviously something new and we’re all making adjustments as we can,” said Word.
The nonprofit has a fleet of 50 vehicles to transport seniors and adults with special needs to recreation programs and doctor's appointments. It also delivers thousands of meals to seniors every month.
Foundation for Senior Living is still projecting how its annual budget will be fully impacted by gas prices.
“Generally when we have a deficit we look for donations from the community, we look for opportunities to write grant applications,” Word said.
“A drain on their budgets”
The state’s largest nonprofit investor of charities, Valley of the Sun United Way (VSUW), tells 12 News that some organizations are being forced to change how they serve the community.
“We are seeing how those increases in gas prices are not only a drain on these organizations’ budgets but also forcing them to be strategic about how best to allocate resources and continue doing their work,” said Jayson Matthews, VP of Community Development and Engagement of the Valley of the Sun United Way.
VSUW supports more than 150 nonprofits, agencies and school districts. Gas prices are impacting nonprofits in indirect ways as well.
“We have also seen in some of our hunger relief and food insecurity organizations the rising cost of food and sometimes that is connected to the rising gas cost as well,” Matthews said.
At least one nonprofit is asking volunteers to share in the burden of gas costs. Other charities are getting creative to raise more money.
Optimism, resiliency and tenacity
Nonprofits face rising gas prices as they simultaneously grapple with several other social issues like affordable housing, healthcare and education challenges.
“The pandemic just really amplified those things,” Matthews said.
“One really has to be optimistic to work in this space,” Matthews said. “I’ve really seen not only that optimism but also resiliency and tenacity in those leaders.”
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