Hansen: Laguna nonprofit groups continue to raise the bar

Donavon Frankenreiter likes to sing with his eyes closed and hat tilted, evoking a feeling of casual concentration, as if he’s singing just for you.

Which is why he was perhaps the perfect choice to help raise money for the Laguna Beach Boys and Girls Club last Friday night at The Ranch. More than 250 people attended the $200 a plate dinner to participate in an auction and other activities. The second-annual fundraiser expected to raise about $150,000 before expenses.

“It was a magical night under the stars,” said Pam Estes, executive director of the club. “The vibe was great with great energy.”

There is a double-edged sword to fundraiser success in Laguna, Estes said. While meeting financial goals using special events — complete with master chefs, fancy auction packages and golf course backdrops — the perception all of this gives the public is that the 501(c)(3) organization is flush with money.

“I think because of the success of our past events, there is a misperception that the club doesn’t need any more support, when the reality is we need it now more than ever,” she said.

Admitting that they may even end the year with a deficit, Estes said one untimely rain can upend their fundraising bottom line.

“We are way too reliant right now on special events, which can be vulnerable to extenuating circumstances, even things like the weather,” she said. “Currently, our revenue sources are pretty diversified, but not balanced, and as you know, it’s better not to have all of your eggs in one basket.”

Estes said the group’s financials last year broke down as follows: 38 percent from special events; 36 percent from program fees; 15 percent from foundations; 4 percent from individuals (or non-event related); 4 percent government and 3 percent corporations.

“The challenge we face is having to raise more than 50 percent of our $2.5 million budget from community contributions,” she said.

The reason these numbers are important — not just for the Boys and Girls Club but for all non-profit groups in Laguna — is that the pool of opportunity is limited.

With a population of less than 23,000, Laguna Beach is considered a small town, but it has 274 official nonprofit organizations, according to GreatNonprofits, a national resource that provides services and information to groups throughout the U.S.

Those 274 nonprofit groups represent the most per capita than any state in the U.S. by more than double. The only area that has more nonprofits is Washington D.C. In other words, per 10,000 people, Laguna has about 120 non-profits. D.C. has 158. The closet state is Vermont with 68.

While these numbers might not be surprising to Laguna residents who are frequently asked to participate, there are limits to what anyone can do.

“Our goal now is to develop a new strategic sustainability plan that is more balanced and built on a culture of philanthropy,” Estes said. “So for us we’re trying to push through this paradigm shift where we aren’t asking for money. This is an investment in the future, and there are people out there who really care and understand the value of that. So it’s giving them an opportunity to make a difference.”

In the case of the Boys and Girls Club, making a difference begins and ends with the children and providing the best staff and support services to help them thrive.

“You can have the best program in the world, you can have the best facility in the world, but if you don’t have the right person, it’s not going to work,” Estes said. “The deepest impact we can have on young ones is through the supportive, caring relationships developed at the club.”

With the continued infusion of financial support, she hopes to increase the current staffing of 25 full-time and 25 part-time employees.

“We’ve been committing to a higher staff-to-child ratio and restructured how we run programs, to optimize those relationships and the assets they help children build,” she said. “The bulk of our budget is our people. They are our program.”

Clearly, not every nonprofit can pull off a Donavon Frankenreiter.

And not everyone can afford $200 tickets.

But in the world of Laguna Beach nonprofit fundraising, the stakes get higher every year, so groups get creative.

So far, it seems to be paying off.

DAVID HANSEN is a writer and Laguna Beach resident. He can be reached at hansen.dave@gmail.com.