Suburban non-profit fluorishes without government reliance

What happens in a state without a balanced budget? Some Illinoisans are learning the hard way.

Across the state, the lack of a state budget has meant social service providers that rely on government for funding are floundering. As a result, some of Illinois' most vulnerable residents are suffering.

But one of the suburbs' most successful, homegrown nonprofits not only is keeping its doors open, but expanding and making bold plans for serving people in need for years to come: GiGi's Playhouse.

The story of GiGi's serves as a bright light amid dark days at many community organizations in Illinois, challenging nonprofits and charitable residents alike to think critically about the nature of giving in a state that can't pay its bills.

GiGi Gianni's first birthday party was the debut fundraiser for GiGi's Playhouse.

On opening day, her mother, Nancy, didn't know if anyone would come.

Nancy wanted to create a space where children with Down syndrome could be celebrated and supported. Children like her daughter. That day in Hoffman Estates, Ill., hundreds of people showed up to celebrate, and Gigi's Playhouse was born.

Twelve years later, GiGi's Playhouse is the nation's largest nonprofit serving children with Down syndrome, with 26 locations in the U.S. More than 25,000 families take advantage of programming at GiGi's, which is always free.

It's one of a kind, which is one of many reasons it's never taken a dime of public money - a blessing, given the state of the state. Community organizations across Illinois now find themselves dependent on government money that may never come. They wait in fear, like Nancy on opening day.

But a look at how GiGi's has flourished can offer hope for a brighter future.

Gigi's Playhouse Marketing Director Marc Portugal says there are three main reasons why GiGi's does not rely on government funding:

First, GiGi's refuses to take money that would force it to deliver programs in a way that might not actually work. "Relying on funding based on metrics designed by people who may not interact, engage and understand our children by seeing them every day would contradict our mission," Portugal said.

Second, GiGi's isn't sure governments are interested in the long-term goals of the organization. "We're about to launch a huge initiative that is all about not letting another generation of kids who are different suffer from the challenges they face," Portugal said.

"We couldn't sell that vision to a government agency. It's a movement, a mindset and a way of life."

Third, Illinois state government in particular has proved to be a profligate partner in funding nonprofits. GiGi's refuses to put its families at risk of having to pay for services, or go without them altogether, because of political disputes.

"Our state couldn't even pay out lottery winnings last year," Portugal said.

"If they can't pay out gaming obligations, why should we expect them to follow through with us and our families?"

Portugal is right. Even in recent years when the state had budgets in place and a record-setting tax hike, community organizations still struggled with dependency on Illinois government.

A 2012 Urban Institute survey reported that for nearly half of Illinois nonprofits, government payments did not cover the full cost of contracted services. A similar share said late payments from the state were a "big problem."

So to what does its leadership attribute the success of GiGi's? Vision?

"It's the power [of] any organization's story that ultimately leads to helping others," Portugal said. "Stories inspire."

Will the GiGi's model work for every Illinois organization seeking to help residents in need? No. Does its story mean taxpayers should never be in the business of funding crucial community services? Of course not.

What the story of Gigi's offers is hope, and an invitation to think differently about what happens when the future success of any organization is tightly bound to a broken state government.

Austin Berg is a writer with the Illinois Policy Institute, a free market think tank based in Chicago.