First published in the August issue of Nonprofit Business Advisor, available electronically to current subscribers in July.

The Social IMPACT Research Center—a nonprofit organization examining social issues and seeking solutions for a more just global society—recently released “The Social and Economic Value of Human Services,” a study emphasizing the vital importance of investment within the human service field.

Judith Gethner, director at Illinois Partners for Human Service, said the report’s impetus was its use as an advocacy tool.

“We wanted to express to legislators that we recognize the state [of Illinois] is short on money and cuts need to be made, but we don’t want to be cut disproportionately,” said Gethner. “Legislators need to recognize that if they cut funding in one silo, they are cutting back on all of the human service providers.”

Gethner’s organization—a statewide coalition of human service providers located in every legislative district in Illinois—used the report to teach state legislators, the governor’s office and the governor’s staff about the positive impact these providers have on the community; teach the media about the economic and human impact the providers have within local coverage areas; and define for taxpayers how human service providers impact communities.

The director said it was also important for local and state lawmakers to understand how their cuts could create a chain reaction that could affect not only human service programs and services, but the economic engine the human service sector helped create. For instance, Gethner said, human service organizations in Illinois employ over 400,000 and each of those employees puts money back into the community. “So, when you cut the sector,” she said, “you are not only cutting services to those who need them, but you are also cutting into the economic engine that moves our communities.”

The director said her organization was also concerned about a potential overlap in services when the Affordable Health Care Act is implemented in 2014. Her organization wanted to be a part of any discussions that arise, in hope of finding solutions and/or fixing the equation, she said.

Major findings from the report that were shared with lawmakers include:

• The return on investment for homeless prevention is as high as a $4 return on every $1 of public investment;
• Supportive housing residents experienced an overall 39 percent cost reduction in the use of public services over a two-year period after moving in to supportive housing;
• Evidence-based substance abuse and mental health treatment can generate an estimated cost savings of $3.77 for every dollar invested;
• Private sector job training programs have initial returns on investment ranging from 10 to 20 percent;
• Providing community care program services costs less than 20 percent of the average cost of nursing home care; and
• Employment has been shown to alleviate poverty, reduce hospitalization, and improve quality of life for people with certain disabilities.

Gethner said that any human service organization can also use the data—much of which was national in scope—in several ways:

1. Share the report with your board of directors. Develop a strategy so that board members can take the data to their local legislators and educate them. “It’s critical to speak to your board of directors,” Gethner said, “because they are business people who understand the ROI, and this is how they operate.” Legislators are used to seeing nonprofit executives and advocates, the director said, but seeing board members, many of whom are business people and contributors to campaigns, provides a larger impact. “It’s much more powerful from the board,” Gethner said.
2. Seek out the local media. In small- and medium-size towns, media outlets are looking for content, the director said. “Have this conversation and allow them the opportunity to see the cost savings and learn about these providers,” Gethner said.
3. Take the study to key legislators. In Illinois, Gethner said they took the report to their Human Service Committee and Human Service Appropriations Committee. Find comparable committees within your state legislature and have a conversation around the study.

Finally, the director recommended that human service organizations locate and join or create an umbrella organization for human service providers in their own states. “This isn’t about trade associations, which are great and work within silos to help shape policy and legislation,” Gethner said. “But it’s important to work together as resources become increasingly scarce.”

For more information

Illinois Partners for Human Service is a statewide network of organizations that advocate for high quality, responsible, and sustainable approaches to providing human service in Illinois. To learn more, go to www.illinoispartners.org/. To contact Judith Gethner, director, email, judith@illinoispartners.org. The Social IMPACT Research Center—a division of founding “Illinois Partners” member Heartland Alliance for Human Needs and Human Rights—is a nonprofit organization that investigates today’s most pressing social issues and solutions to inform and equip those working toward a just global society. To learn more, go to www.heartlandalliance
.org/research/. To read the complete report “The Social and Economic Value of Human Services,” visit http://illinoispartners.org
/sites/default/files
/Human_Services
_Effectivness
_Evidence_110511.pdf.