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La Plata County nonprofits have been challenged by business consolidations and declines in the oil and gas industry, but they are expected to be a resilient sector of the economy.

In recent years, giving from individuals has become more important for local nonprofits as corporate sponsorships, particularly from oil and gas companies, declined, said Briggen Wrinkle, executive director of the Community Foundation Serving Southwest Colorado.

At the same time, many local independent businesses have been hurt by drought and the 416 Fire, and are unable to give as much.

Larger businesses have been purchased by outside companies, which also hurts giving because they do not have as many local ties, she said.

Still, Wrinkle expects the sector to hold stable as nonprofits seek new funding sources during the tough times.

“It is one of the most resourceful and creative groups I have ever seen,” she said. “They don’t take ‘no’ for an answer.”

Economic impact of nonprofitsIn 2017, La Plata County nonprofits contributed $136 million to the economy in direct spending and employed 1,538 people, according to the Colorado Nonprofit Economic Impact Study.

Direct spending includes employee pay, goods and services purchased, real estate costs, and state and local taxes paid, said Renny Fagan, president and CEO of the Colorado Nonprofit Association, one of the funders of the study that relied on tax documents.

In the county, about 180 nonprofits reported revenue in 2017, according to the association.

The nonprofit sector was likely one of the top five industries in the region, by number of employees, according to a 2018 Southwest Colorado Nonprofit Economic Impact Report.

Data are not yet available to determine how much the 416 Fire hurt regional employment in 2018.

Main employers in the nonprofit sector include Mercy Regional Medical Center, Axis Health System and Southwest Health System in Cortez.

Nonprofits in the human services sector can have a long-term economic impact that is harder to measure than direct employment, said Lynn Urban, president and CEO of the United Way of Southwest Colorado.

For example, when a community provides permanent supportive housing to homeless residents, it can save emergency rooms, ambulance services and jails money, she said.

“The cost of actually providing the housing is lower than providing all those emergency services,” she said.

In Cortez and Durango, nonprofits have plans to either build permanent supportive housing or apply for funding to build it.

A resilient sectorLast summer, during the 416 Fire, local businesses could not provide in-kind donations, such as gift certificates, that some nonprofits rely on for major fall fundraisers, said Sandhya Tillotson, the former executive director of The Garden Project of Southwest Colorado.

“It was definitely scary for a lot of nonprofits,” she said.

Grants provided by the Community Emergency Relief Fund, raised through community donations, provided nonprofits with money to spend at local businesses to purchase items that could then be used in silent auctions to raise money for the nonprofit.

“We actually had our largest, most successful silent auction ever,” said Tillotson, now an independent nonprofit consultant.

Music in the Mountains was concerned the economic hardship from the 416 Fire would hurt what businesses and individuals were able to give, said Executive Director Angie Beach.

“What we have found so far is that this community is extremely generous and gives until it hurts,” she said.

Monique DiGiorgio, managing director of Local First, said it has been a tough economic year for businesses in town, but she also has seen an outpouring of support for the Creative District that her nonprofit aims to establish. The district is meant to draw more tourists to town.

“When there is a highly relevant issue that the community is really behind, you are going to get support,” she said.

Outside fundingWhile it may seem like Durango has an endless number of fundraisers, much of the funding for nonprofits comes from outside the community in the form of grants, according to the regional report.

In 2017, regional nonprofits brought in $31 million in grants compared with the $7.5 million raised from donations, the report said.

Wrinkle said she expects the amount raised through state grants to increase this year because more nonprofits are expected to apply for those funds. It is also possible nonprofits might consider mergers.

“When times get tough, people start to think really frugally,” she said.

mshinn@durangoherald.com