"It is the single biggest factor in our inability to grow and serve more people," said Vivian Wan, CEO of Abode Services, which provides shelter, housing and other aid for unhoused people across seven Bay Area counties. "This is a huge issue."
Some are turning down new projects despite the massive need for services in their communities. Others are borrowing to stay afloat, ending up paying tens of thousands of dollars each month in interest - money they would rather spend on helping homeless Californians.
With inflation driving up expenses and the growing homelessness crisis driving up need, some nonprofits have reached their breaking point.
When a city opens a new shelter or housing program, it lacks the capacity to run the program itself, so it contracts with a nonprofit that has expertise working with unhoused clients.
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