I've been interviewed for a lot of stories over the years by newspapers and television news programs. (Google me for a sampling.)  And one of my favorite questions is one I get often: Who is your typical client?

While it makes for a good sound byte, in reality, there is no typical client.  I have counseled 18-year-olds and 86-year-olds; welfare recipients making $136 per month and people earning in excess of $200,000 a year; folks of every race, religious persuasion and sexual orientation; shop-a-holics as well as people who spend nothing and live on Ramen noodles.

Debt does not discriminate.  And anxiety over money does not only permeate the lower and middle classes.  Actually, in many ways, it's a much bigger challenge for someone with a higher income to unravel a financial mess.  I have found that most people who make less money don't define themselves by their tax bracket or bank balance.  But to someone who is accustomed to an annual salary of $200,000, a sudden income drop to $60,000 has a stigma attached when making drastic lifestyle changes.

Thus, in a weird way, it's the upper-middle class that probably needs me the most.  Not because their financial problems are more important than those of welfare recipients.  Rather, there simply is not a lot of help available to people who make above a certain amount.  Someone who makes $50,000 a year, for example, might have a tough time putting food on the table.  But he/she would make way too much money to qualify for food stamps or other government programs, and most non-profits rely heavily on funding that predominantly serves lower income families.  Programs may wish to open their doors to more people, especially in this economy.  But their services are frequently determined by the foundations who pay their bills.

Luckily, GreenPath, whom I've served as a counselor since 2001, is blessed with multiple sources of income.  I say blessed because, while GreenPath does receive funding (from HUD, for example), we would still survive if our funding channels were cut off.  We receive income from clients as well as creditors who administer our payment programs and, ultimately, assist us in providing free counseling for everyone who walks through our door-- rich or poor.  The fact that Chase, for example, lowers their interest rate from 29.99% to 6% means that a client will gladly pay us $50 a month if it will save them $300 a month in finance charges.  And, of course, Chase is happy to contribute to an organization like us, for they're thrilled to be paid back, avoiding a default or bankruptcy.

But like any good business, you never want to rely on a sole product.  For years, all we did for the majority of our income was offer payment programs... until we were hit hard by 9/11 and the subsequent downturn.  

Since then, we've diversified, emerging as the first organization approved to give both types of credit counseling required to file bankruptcy*.  We've built a unit from the ground up that now employs over 100 counselors who provide help around the country.   And we've received funding which has enabled us to counsel anyone experiencing problems with their mortgage free of charge. 

So, even if less people can afford payment plans, we'll still have enough money coming in from those who face bankruptcy or foreclosures.  Why is this good?  Because we remain able to provide free counseling to ANYONE in financial distress.

I challenge other non-profits to get more creative in terms of how they can bring in income and serve a wider population.  My favorite example of this creativity in action is Angel Food Ministries.  Through AFM, anyone is able to buy $60 - $65 worth of groceries for $30 thanks to a sponsoring church.  Anyone can participate in this program, and food stamps are accepted.  In fact, Angel Food Ministries encourages even those who do not need the savings to take advantage of their program.  This way, participants can pass along their savings to the needy. 

Since thousands of orders are placed through Angel Food Ministries, the organization receives discounts on volumes of food.  Think: WalMart... with the exception of savings passed along to consumers in need versus a greedy corporation.  A farmer who sells Idaho potatoes processes guaranteed bulk orders.  And the church that sponsors Angel Food Ministries earns one dollar per order.  As such, the program, in its entirety, benefits all players.

Creating a win-win-win scenario really is key.   As Greenpath assists many in reestablishing their credit, clients get out of debt faster, banks avoid possible losses and the non-profit earns funds to counsel the next person in need.  All parties receive a boost as they try to break a cycle of dependence.  And breaking this cycle is at the very heart of improving non-profits.

(For more discussion on re-thinking non profits, check out this Utne Reader article.)

A non-profit organization I'd partnered with in order to teach financial literacy classes some time ago was able to create a program in part from an AIG grant. 

Somehow, I don't think the grant will be renewed.

--Chris Dlugozima
 
*Following the 2005 bankruptcy reform.  This requirement was probably the only good thing that came out of this creditor backed legislation.