Non-Profits Struggling in World of Welfare Reform

Recommendations to be discussed February 25 at NYC Forum

NEW YORK—In a study on the unforeseen and unstudied effects of welfare reform on the non-profit human service agencies that serve low-income communities—home to many current and former welfare recipients—author Mimi Abramovitz, DSW, Professor of Social Work at Hunter College School of Social Work, City University of New York, found that many of these agencies are strapped to capacity to meet the demand for additional services brought on by welfare reform. These additional services include helping clients to understand welfare’s rules, deal with workforce assignments, and handle sanctions and case closings that have increased the economic and emotional crises experienced by families on welfare.

The study, sponsored by the National Association of Social Workers (NASW) New York City Chapter and funded by the United Way of New York City, looked at the impact of welfare reform on the lives of the clients, the jobs of agency workers, and the capacity of non-profit human service agencies in New York City to serve the low-income families in need. It concluded that welfare reform has placed the delivery of human services by non-profit agencies "in jeopardy."

"The changes in the federal, state, and local laws after welfare reform have heightened the need for many services non-profits provide. However, many agencies are spending a majority of their time helping clients navigate the system and understand the new rules. The actual services which the agency was created to provide and specifically help people move from welfare to work are getting short shrift," says Abramovitz.

In interviews with senior staff at 107 local New York City non-profits, the majority concluded that educating clients about welfare requirements and dealing with the overall fallout of welfare reform compromises the delivery of other necessary services. Ethical conflicts faced by workers and the need of the agencies to shift their service priorities also resulted from welfare reform.

This education process is important because non-profit agencies rely on TANF, Medicaid payments, Supplemental Security Income and housing allowances to pay for their services. If clients don’t understand the rules and are sanctioned or their case is closed, not only will the non-profit not get paid; the caseworkers face an ethical dilemma in not being able to help those who need it. The agencies end up changing their programs in order to accommodate welfare reform mandates and contract requirements, limiting the services they provide.

The study grouped the agencies, located in all five boroughs of New York City, into five areas of service: social services, emergency services, employment-related services, health and mental health services, and community services. Despite their differences, all agencies served many clients who had regular contact with the same basic income support programs and reported extraordinarily uniform experiences with welfare reform.

As a result of the study, Abramovitz concludes, "Local agencies must be more involved in the entire process—true collaborators in helping people move from welfare to work. In order to be full partners in assisting families, the agencies should be required to be part of the national, state and local planning processes to ensure that welfare plans continue to meet the needs of its recipients."

She adds, "Because the findings of this study have major implications for TANF reauthorization that haven’t been addressed elsewhere, human service workers—dealing with the low-income populations daily—need to add their voice and experiences of the kind reported in the study to the mounting welfare reform debate."

NASW recommends focusing on reducing poverty and moving families to self-sufficiency. Enhancing the capacity of the welfare system infrastructure by providing education and training for local agency staff, including public welfare staff. Family crises have become increasingly more complicated and as a result, agencies need more knowledgeable staff to help these families solve their problems. Understanding what inhibits recipients with multiple barriers—such as mental illness, domestic violence or substance abuse—from finding jobs is key. Helping them access services that address these problems would also lead to decreased welfare rolls.

The study, "In Jeopardy: The Impact of Welfare Reform On Nonprofit Human Service Agencies in New York City," by Mimi Abramovitz, DSW and conducted for the Task Force on Welfare Reform, NASW-NYC, funded by the United Way of New York City will be discussed on Monday, February 25, 2002 at 9:00AM (Breakfast at 8:30AM) at the United Way of New York City, 2 Park Avenue, 2^nd Floor, between 32^nd and 33^rd Streets.

Journalists requesting a full copy of the study or to register for the event should contact Lahne Mattas-Curry at 202-336-8228 or 301-461-8856.

NASW’s recommendations for welfare reform can be found on the web at http://www.socialworkers.org/advocacy/welfare/legislation/recommend.pdf (PDF).