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The world of nonprofit organizations: A powerful and intricate business

Note: This is the first of three articles aimed at raising awareness around the impact, importance, and struggles of nonprofits in the lead-up to the Big Give 2024.

Nonprofit organizations are complex and influential entities. While commonly perceived as groups of people rallying around a cause for community benefit, they are much more than that. In reality, nonprofits can contribute substantially to the local economy, sometimes surpassing the economic influence of for-profit businesses.

Nonprofit vs. for-profit

 

One of the most common distinctions between nonprofit and for-profit organizations lies in financial operations. Nonprofits, created to serve the public good, reinvest their income to advance their cause, while for-profit businesses aim to maximize profits for their owners and shareholders. While both types of organizations aim to generate revenue, nonprofits prioritize social impact over financial gain.

Nonprofit organizations must be rooted in charity and are legal entities that benefit from tax-exempt status under the Internal Revenue Code Section 501(c)(3). This status allows them to prioritize their mission and allocate all resources toward it. However, this also subjects them to complex laws and regulations at both state and federal levels, which for-profit organizations do not fall subject to.

These points highlight some of the distinctions and similarities between nonprofit and for-profit organizations. However, the most important misconception surrounding the two rests in their economic impact. Contrary to common belief, nonprofits not only contribute to community improvement through impacting individuals but they also have a significant, sometimes greater, economic impact compared to for-profit entities.

Economic impact

 

Nonprofit organizations not only impact society with their mission-driven initiatives and services but they also significantly influence the economy. Employment, for example, is one such area of impact.

Nationally, nonprofits employ around 12.3 million individuals, according to the National Council of Nonprofits. In our local community, the sector provides jobs for over 700 residents, compared to just over 100 in the transportation and travel industry. Additionally, the hospitality industry, often touted as a driving force in our community, directly employs slightly over 1,000 locals in lodging, only a few hundred more than the nonprofit sector. This highlights the role nonprofits play in creating community employment opportunities.

Worker earnings also reflect this economic importance. A 2022 report showed that the local nonprofit sector’s total annual payroll was $41 million, surpassing the transportation and travel industry’s $2.5 million and nearing the entertainment industry’s $45.2 million direct earnings, per a recent city economic report.

Moreover, nonprofits stimulate economic activity. For instance, a visit to the Brauntex Theatre in New Braunfels might lead to dining out, purchasing a new outfit, or paying for parking. This underscores the nonprofit theatre’s broad economic impact which fosters jobs, increases tax revenue, and supports local businesses.

A 2022 McKenna survey also revealed that the local nonprofit sector generated approximately $82 million in revenue from various sources, such as state and federal agencies, along with several other entities outside the community. Of this revenue, $68 million was reinvested into the economy by supporting local goods and services, including new construction, purchasing hospital beds, or buying everyday items like office supplies.

The larger picture

 

Often misconceived as entirely separate from for-profit businesses, nonprofits share more similarities with them than some may recognize. This common misunderstanding leads to the underappreciation of just how much nonprofits contribute to the local economy.

Functioning far beyond generating profit, nonprofit entities are a powerful force. They signify a dedication to a better society and embody the potential of an organization driven by mission, which, in turn, enhances our community both socially and economically.

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New Braunfels Youth Collaborative prepares for celebrity fundraising events

The New Braunfels Youth Collaborative (NBYC) is gearing up for two exciting fundraising events as they edge closer to their goal of a $15 million renovation of the historic New Braunfels High School into the Mill Street Youth Center.

On Thursday, September 12, the NBYC will host TeeUp for Teens Celebrity Dinner and Reflections. This event offers the public an opportunity to spend an evening with celebrity athletes, enjoy a served dinner, and listen to a live panel discussion featuring the celebrities.

Among the 18 celebrities attending, the panel will feature Pro Football Hall of Famer Robert Brazile, former Dallas Cowboys linebacker Dat Nguyen, current coach for the San Antonio Brahmas Wade Philips, and former quarterback for the Houston Oilers Dan Pastorini. The panel will be moderated by award-winning American sportswriter John McClain.

NBYC is offering Celebrity Host Tables, where seven guests and a celebrity will share the table, along with a VIP reception prior to the event, wine service, and acknowledgment at the event and on NBYC media channels. Additionally, Friends of NBYC tables are available for groups of eight, providing reserved seating, as well as individual tickets with open seating.

The event is scheduled to take place at the McKenna Events Center on September 12 at 5:30 pm.

The following day, the New Braunfels Youth Collaborative will hold the TeeUp for Teens Celebrity Golf Tournament. Playing in the tournament will be 18 celebrity athletes, including those from the panel, as well as former NFL wide receiver Doug Donley, three-time Olympic medalist Cat Osterman, and former MLB starting pitcher Shane Reynolds, and more.

The golf tournament is set for September 13 at 8:30 am at the Land Park Golf Course. It will be a four-person scramble format and will offer not only the chance to meet and play alongside these celebrity athletes, but will also include breakfast, lunch, and cash prizes.

Participants can register as a foursome or as a trio accompanied by a celebrity.

Registration and sponsorship details for both events can be found at www.thenbyc.com/golf-tournament/.

Sponsoring or participating in these events will help raise funds for the Mill Street Youth Center, located at the intersection of Mill Street and Academy Avenue. Upon completion, the Youth Center will provide a safe environment for students in grades 6th through 12th to grow, connect, and excel.

The center is expected to be completed by Fall 2025 and will feature study rooms, a recording studio, a refurbished gym, an esports gaming area, and a culinary teaching kitchen. It will also offer homework help, SAT prep, and various other programs tailored for local youth.

For donations, registration forms, sponsorships, or further information, please visit www.thenbyc.com. Checks may also be sent to 801 W. San Antonio St., New Braunfels, TX 78130.

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McKenna Foundation seeking input from local childcare providers

The Mckenna Foundation is seeking support and participation from local early childcare providers to push forward in creating an ambitious yet practical future for our youngest learners.

The McKenna Foundation is organizing a series of collaborative sessions to address the challenges faced by local childcare providers and parents. These sessions aim to create a pathway toward affordable and high-quality early childhood care while simultaneously running a successful business.

To accomplish this, the Foundation is seeking the unique insights and experiences of local childcare providers to help shape a promising future for our children.

Local childcare providers are invited to join us and participate in the first Path Forward for Early Learning and Care meeting on August 24, from 10 am to 1 pm at the McKenna Events Center. Local providers who participate in all three sessions will be entered to win a complimentary field trip to the McKenna Children’s Museum for up to 50 children currently enrolled at their center.

If you are a local childcare provider and would like to participate in the Path Forward for Early Learning and Care sessions, RSVP by emailing Kristen Fain at kfain@mckenna.org.

The McKenna Foundation recognizes that the challenges in early childhood care are significant and multifaceted, with a few of the key issues including:

HIGH COSTS: Childcare often costs more than in-state college tuition, making it a significant financial burden for families.

LOW WAGES: Childcare workers earn significantly less than workers in other sectors, such as retail.

LEGISLATION: Changes in licensure and business models are causing many childcare centers in Texas to close.

FUNDING GAPS: There is insufficient funding and support for early childhood education compared to K-12 education.

STAFFING: There is a high turnover rate and a shortage of trained teachers in the field.

 

These challenges highlight the need for increased investment and support for early childhood education to ensure that children, families, and childcare workers can thrive in our community.

For more information on early childhood care and education, click here.

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Seniors are struggling in Comal County: Donate to Meals on Wheels today

Donate here.

Residents of New Braunfels and Comal County, especially our elderly and homebound neighbors, are facing significant challenges in meeting their basic needs.

The Meals on Wheels program, operated by the Comal County Senior Citizens Foundation (CCSCF), steps up to support these vulnerable seniors by providing them with hot, nutritious meals delivered directly to their homes each day.

CCSCF needs help today to continue to provide this lifeline for our seniors. You can make a meaningful impact in their lives through donations to keep our local Meals on Wheels program on course and continuing its mission. Donate today by clicking here.

Local data suggests that in just the last year, our neighbors accessing food resources and who are food insecure have increased over 40%. In Comal County, approximately 22,720 individuals, representing nearly 14% of the population, are struggling with food insecurity, with a significant portion being homebound seniors.

Given the program’s importance, CCSCF has experienced a surge in demand for home-delivered meals. This, coupled with a decline in funding and an increase in food costs over the past few years, has put a strain on available resources. Although the Meals on Wheels program receives partial funding from state and federal partners, the organization is still responsible for the unfunded meal costs; a gap which with recent trends, has continued to widen.

This financial strain underscores the urgent need for support from the community to help CCSCF continue to provide crucial assistance to those in need.

Currently, over 370 dedicated local volunteers work tirelessly to ensure that our seniors receive the nutrition and support they need to live healthy and fulfilling lives. Every year, the Meals on Wheels program delivers approximately 76,281 meals and serves 570 local seniors.

Rally with us as a community to support the Meals on Wheels program, the CCSCF, and our aging neighbors!

Donate here.

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New Braunfels Youth Collaborative over halfway to $15 million initiative

The New Braunfels Youth Collaborative (NBYC) has raised 65% of the funds needed for a $15 million renovation to the historic New Braunfels High School, located at the intersection of Mill Street and Academy Ave.

Studies indicate that 18% of middle school-aged students and 35% of high school students are unsupervised after school hours. 43% of local students are facing economic challenges, with 21% unable to afford participation in afterschool activities. With this in mind, the NBYC is dedicated to providing out-of-school support for youth to foster their personal and educational growth.

To determine the necessity for a new communal space conducive to socializing, learning, and growth, the NBYC surveyed local youth. The findings revealed that 70% of students would utilize a local youth center.

Upon completion, the Mill Street Youth Center located at 430 W. Mill Street will boast study rooms, a recording studio, a culinary teaching kitchen, a renovated gym, and an esports gaming area. Furthermore, the center will offer SAT preparation, homework assistance, and a variety of other youth-oriented programs. This renovation will ensure the preservation of the building, which is over 100 years old and a registered historic landmark.

The youth center will be accessible to all students, grades 6th through 12th. Afterschool meals and snacks will also be provided to youth.

Additionally, the building will house offices for partners Communities in Schools and NBISD School of Choice.

The NBYC has secured a 50-year lease agreement with NBISD, intending to foster proactive values, social skills, and a positive learning outlook. They have raised $9.8 million through fundraising efforts toward the $15 million target. Various entities, including the Moody Foundation, Kronkosky Foundation, Communities in Schools, the New Braunfels Economic Development Foundation, American Rescue Plan Funding, United Way, and the McKenna Foundation, have contributed to the fundraising efforts.

Anticipating the completion of renovations by Fall 2025, the New Braunfels Youth Collaborative continues to welcome contributions and donations. To support youth in our community and contribute to the Mill Street Youth Center project, please visit www.thenbyc.com. Checks may also be sent to 801 W. San Antonio St., New Braunfels, TX 78130.

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Meals in Comal County cost more than SNAP benefits

The Supplemental Nutrition Assistance Program (SNAP) assists over 42 million people in the United States annually. In Texas, approximately one in nine individuals benefited from SNAP in 2022, as reported by the Center on Budget and Policy Priorities (CBPP). Data from the United States Census Bureau indicates that in Comal County, 4.4%, or about 8,000 households, received SNAP benefits that same year. However, data from 2023 suggests that SNAP benefits do not cover the cost of a modestly priced meal, resulting in widespread food insecurity among many families both nationally and locally.

THE PROBLEM: 

 

While SNAP benefits assist thousands in Comal County, the cost of a modestly priced meal often exceeds what these households can afford, leading to persistent food hardship and increasingly tight budgets.

Nationally, in 2023, the maximum benefit only covered the cost of meals in 36 of the 3,144 counties, as reported by the Urban Institute. In Comal County, the difference between SNAP benefits and the cost of meals is approximately $0.24, rendering a modestly priced meal 8% more expensive than the maximum SNAP benefit.

Additionally, data from Feeding America and Texas Health and Human Services in 2022 indicate that 62% of the food-insecure population in Comal County have incomes above the SNAP threshold, with earnings over $4,125 monthly for a family of four. In other words, 62% of our neighbors who struggle with grocery costs earn too much to qualify for assistance. This often forces them to choose between food and medication, rent, or clothing. Reports also suggest that an annual investment of $15.8 million is required to eradicate hunger in Comal County.

ABOUT SNAP: 

 

Previously known as the Food Stamp Program, SNAP is the nation’s most valuable anti-hunger initiative, aiding low-income individuals in obtaining a nutritionally sufficient diet. It supports low-income working families, individuals with disabilities on fixed incomes, older adults (60 years and older) with low income, and other low-income households. The CBPP states that about two-thirds of SNAP recipients are families with children, and one-third are individuals with disabilities or older adults.  

In Texas, the maximum monthly income an individual can earn is $2,005 and still qualify for the program, as per the Texas Health and Human Services. The threshold for a family of two is $2,712, and for a family of four, that threshold is $4,125. 

A single eligible Texan can receive a maximum of $291 monthly from SNAP. For each additional household member, up to $219 per month is added. For example, a family of two may get $535, while a family of four may receive a maximum of $973.

LOCAL RESOURCES: 

 

The demand for food security programs continues to increase in our community. Several local organizations, however, continue to step in to fill the gap caused by insufficient benefits. The following organizations are dedicated to providing assistance and support to those in need:

New Braunfels Food Bank: 

  • Located at 1620 S Seguine Ave. in New Braunfels
  • Open from 8 am to 5 pm, Monday through Saturday
  • Request an appointment here.

 

The Hope Center Food Pantry:

  • Located at 6260 US Hwy 281 N in Spring Branch
  • Open from 9 am to 12 pm, Tuesday through Friday

 

Community Resource and Recreation Center: 

  • Located at 1917 FM 2673 in Canyon Lake
  • Open from 9 am to 4 pm, Monday through Friday (last shopper at 3:30 pm)

 

Helping Hands Food Pantry: 

  • Located at 11755 Hwy 281 N in Spring Branch
  • Click here for 2024 hours

 

For more information on hunger in our community, please click here. 

For more local resources dedicated to ending hunger, please visit our Non-profit Resource Directory.