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In recent months, the closure and significant reductions in scope and staff of many human service organizations have caught the public eye, often portrayed as sudden and discrete events. Yet, those of us within the sector have seen these developments coming and recognize them as symptoms of an increasingly alarming systemic pattern rather than isolated incidents.
The bigger picture
From the shutdowns of Perspectives and Evergreen, both focusing on substance use disorder and housing, to North Memorial Health’s cessation of outpatient mental health services, and the closure of Rainbow Health serving the LGBTQ+ community, along with Agate’s recent decision to close emergency shelters and permanent housing, a distressing pattern emerges. These are not just random occurrences but are indicative of a distressing trend that threatens the very fabric of the human services sector and demands our collective attention and action.
According to GivingCompass Insights, over 313,000 nonprofit organizations in the United States focus on human services, generating $350 billion in revenue annually — roughly equivalent to twice the GDP of the entire state of Iowa, over four times that of Idaho, and about the same as the GDP of Minnesota, Indiana or Tennessee. These nonprofits account for 12.8 million jobs, or 9.9% of all private-sector employment, according to a 2022 Bureau of Labor Statistics report. The closure of each organization represents not just a loss of services but a fraying of the social safety net that underpins our society.
The misconception of market correction
It’s both easy and dangerously simplistic to dismiss these closures as mere market corrections or as natural consequences of mismanagement. The adage “Minnesota: land of 10,000 nonprofits” underscores a community-focused ethos that supports the most vulnerable among us. How can we speak of market saturation amid escalating homelessness, rising opioid fatalities and persistent rates of incarceration and mental illness? These closures underscore a fundamental flaw in our social safety net, not an overabundance of service providers.
Voices from the field
Caroline Hood
As the president and CEO of a Twin Cities-based nonprofit, I have engaged in increasingly candid discussions with sector leaders. Whether in one-on-one conversations, group settings, or email exchanges, the anxiety is palpable; many fear they might be next. This crisis isn’t about poor management or lack of business acumen; it’s about an underfunded, under-supported sector struggling to meet escalating needs with dwindling resources. Moreover, it’s about service models built on outdated assumptions of wellness and stability. These models are no longer adequate as they fail to reflect the increased complexity and acuity of needs among those we serve and the community writ large. Like a child who has outgrown their shoes, we cannot expect our human service organizations to operate effectively within models that no longer fit.
A call for sector-wide support
We must view these challenges holistically and with a long-term perspective. Addressing both immediate needs and root causes is paramount. This means enhancing funding strategies, fostering collaborations that break down traditional silos, and developing policies that support the stability and growth of human services. Reactive measures are insufficient; we must proactively support the infrastructure that sustains these essential services.
As a reader, your involvement can help support our sector. By simply broaching this topic in conversation with family, friends, and colleagues, you help bring awareness to these issues. You can more directly contribute to organizations whose missions align with your values through time, talent, or financial support, and you can reach out to elected officials to share your perspective of these community-wide challenges.
The recent spate of nonprofit closures and reductions is a stark wake-up call. These aren’t mere organizational failures; they signal a systemic collapse that could profoundly impact our society’s most vulnerable. It’s time for a concerted, sector-wide response to ensure the sustainability of services that millions depend on. Let’s transform our approach from reactive to proactive, from isolated actions to interconnected solutions. Together, we can rebuild and strengthen the social safety net that supports us all.
Caroline Hood is the president and chief executive of RS EDEN, a nonprofit based in the Twin Cities providing integrated, innovative services addressing substance use disorder, mental health, housing and criminal justice supports.
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Publish date : 2024-09-09 03:52:00
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