Funding Dries-up for Non-profit and Educational

Institutions Serving Black Communities

Larry A. Cochran, MBADoctorial Student at Argosy University Schaumburg Campus

Current Alumni of Argosy University Alumni AssociationSubstitute Teacher for Bellwood School District 88 and Bensenville School

District 2Senior Managing Consultant of Cochran Enterprise Consulting Services,

Inc.

Introduction• Limitations of proposed Study

• Time• Money needs• Accurate account of financial cycles

• Outcomes or Expectations• Open clear dialog about the funding

sources for education systems• Find a pathway to secure adequate funding

for non-profit and education systems

Introduction• Purpose of this study

• Explore the effects of the deep recession of 2008 in the United States on non-profit institutions and educational institutions, serving predominately black communities, and their ability to secure adequate or stable funding.

• Topics included but not limited to:• Financial• Moral• Ethical• Entitlements

Historical Background• Trends in funding during past economic crises in

the United States for non-profit and education systems serving predominately black communities• Ideas that need to be investigated:

What events marred recovery efforts in education for institutions serving black communities

How is giving to not-for-profits, serving black communities, effected during crisis

Current Studies• Educational equity is a moral imperative for a

society which education is a crucial determinant of life chances (Levin, 2009).• We know that inadequate education affects not

only poorly education individuals but also society in:Lost productionLower tax revenuesHigher cost of public services

Current Trends• BLACK EDUCATION

• * 2008 Black Population: 41.1 million or 13.5% of US population

• * 81% of African Americans age 25 and older had at least a high school diploma in 2008.

• * 1.4 million blacks age 25 and older had an advanced degree in 2005 (e.g., master’s, Ph.D., M.D. or J.D.). Ten years earlier—in 1995—only 677,000 blacks had this level of education.

• * 3.3 million black college students in fall 2005. This was an increase of roughly 2 million from 15 years earlier.

• * 18% of blacks age 25 and older had a bachelor’s degree or more in 2008. In many states, the rate was higher. Twenty-six percent of blacks this age in Colorado, for instance, had this level of education.

Current Trends• BLACK INCOME

• * $35,575 Black Median Household income (dollars) (all races $52,029)

• * $41,998 Black Median Family income (dollars)       (all races $63,366)

• * African American population 16 years and over 29,551,074

(all races 238,764,455)

* Black Demographics (http://blackdemographics.com/employment.html

Overview of proposed study• Brief investigation exploring the basic

assumptions that the funding options are available during times of financial crises through their primary institutions yet they may be disproportionate to needs.• Considerations:

How does lack of adequate funding effect access to already limited funding?

How does community continue to develop trust for its officials and leaders?

How will future programs be effected by current trends in government spending?

Overview of proposed study• Further Considerations:

If economic trends continue on a downward trend, can funding return?

Are there competing for-profit organizations serving these communities?

o Can measured success from competing for-profit organization serving black communities discourage future non-profit growth? Are there sufficient success measuring tools?

Proposed methods and procedures• Identifying multiple variables (measured at more

than one level)

• Model relationships within and between levels

Measurement toolso Kendall’s coefficient of concordanceo Chi-square test for W

• Analyzing patterns among individual cases• Measured among interval scales as linear relationships

Measurement toolso Clustering techniques: single, complete, and

average linkage, as well as K-means

Proposed methods and procedures• Exploring relationships

• Interval and the relationships treated as linear

Three-mode factor analysis

• Comparing Patterns• All variables as interval

Standardizedo Multi-group confirmatory factor analysis of

standardized variance-covariance matriceso Maximum likelihood chi-square (X²)

Conclusion• During crises the poor need more funding and not

less due to continuing economic deficiencies• Moral and ethic lines are drawn back due to the

“Le Miserable” Effect• The problems that are now faced by these

communities are doubled because they are based on two trends• On-going supplemental needs• Current and Future economic cycle

Conclusion• The non-profit organizations play the role of helping

to supplement the education process with programs that are designed to enhance the student’s ability to learn the curriculum.

• During crises, these organizations face layoffs, budget cuts, and the possibility of closures.

• Without adequate funding, these institutions do not have the ability to support the school system in a way that is most effective for the students they serve.

• These students are placed back into general population and therefore face the possibility of being left further behind academically.

Questions & Answers• Invite questions from the audience

Contactcorresponding author:

skollarrock@yahoo.com Home: 100 East George Street, Apt 519,

Bensenville, IL. 60106 | Phone: 630-860-0097 | Cell: 708 829 7847

Resources• Levin, H, (2009) The economic payoff to

investing in educational justice, Educational Researcher, Vol. 38, No. 1, pp.5-20, DOI: 103102/0013189X08331192

• Andrews, F; Klem, L; O’Malley, P; Rodgers, W; Welch, K; Davidson, T (1998) Selecting Statistical Techniques for Social Science Data, SAS Institute Inc, Cary, North Carolina