Foundations in western New York State award tens millions of dollars every year to hundreds of nonprofit organizations, but whether or not they should provide extra help to make up for public-sector funding cuts is open to debate, Buffalo Business First reports.

The issue has come to a head in economically depressed Erie County, which, struggling with a shrinking tax base, has had to make significant cuts in its funding for area nonprofits. Most grantmakers agree it's not the role of foundations to let government off the hook in its responsibility to provide funding for human services and cultural programs. "That's the real tension: Should they or shouldn't they?" said Andrew Schulz, deputy general counsel at the D.C.-based Council on Foundations. "It's a personal choice every organization should make, based on what their long-term goals are and their philanthropic mission is. If you step in, do you have an exit strategy? If [things] turn around, is the government willingly going to take this stuff back?"

The IRS requires that private foundations award a minimum of 5 percent of their assets every year, although some give more. With combined assets of about $800 million, foundations in Erie County give roughly $40 million in grants annually — a drop in the bucket compared to the county's $1 billion budget. "If we were to give more to fill the gap, that still doesn't fix the problems, so we're essentially throwing good money after bad," said Paul Hogan, president of the Western New York Grantmakers Association, which has about sixty member foundations. "That's not an answer. Giving more strategically is the best answer."

Working collectively to deal with the problem, grantmakers in the region are doing more to share information and coordinate their giving, sometimes making collaborative grants in an effort to achieve greater impact. Others, like Richard Moot, president of the Western New York Foundation, advocate providing low-interest or no-interest loans instead of grants.

Still, many people in the region think foundations should be doing more. "Right now with the funding so drastically cut from the county, they should [give more]," said Veronica Hogle, a consultant who works with nonprofits. "If the foundations gave 7 percent or 8 percent, it would improve conditions for nonprofits enormously, without doing a rescue mission."

According to David Sampson, president of the Western New York chapter of the Association of Fundraising Professionals, most nonprofits recognize that foundations are in a tough position. "A lot of times our members are in a wait-and-see mode," said Sampson. "[They] have been working with these challenges for a long time. I think we're used to it.... It's being alert and responsive to the changing landscape of the challenges we all face."