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Barbara Murphy had an up-close view of how much money her nonprofit was losing and worried it would only get worse in the throes of the recession.
“We were losing money every year until 2007,” she said.
That year the fundraisers at the United Way of Washington County were hoping the organization could attract at least $750,000 in donations.
Murphy, who was the resource development director at the time, was in charge of “shaking bushes for money.”
Now she’s president of the nonprofit and oversees a budget that has grown in the last nine years. It reached more than $1.5 million by June 2015.
“It makes me look like a miracle worker, and I’d love to take credit, but it was being in the right place at the right time,” Murphy said.
The right place was thousands of feet above a river of natural gas, and the right time was at the start of the Marcellus Shale boom.
“If a charity in Washington County is not receiving money from Marcellus Shale companies, it’s because they’re not asking,” Murphy said.
Oil and gas development was a game-changer for nonprofits in Washington County and throughout the state.
It’s generally believed that, as goes the economy, so do donations to nonprofits. But the industry changed that axiom in Pennsylvania.
As profits fell and the unemployment rate soared, local charitable organizations were receiving more money. They were able to help when it was needed most, thanks to new donations from oil and gas companies.
United Way has collected nearly $1.2 million from the industry since 2007, Murphy said.
Range Resources was the first company to frack a well in Pennsylvania, and it was the first company to donate to the United Way in 2007.
But Murphy noticed something pretty quickly. It wasn’t just the company’s employees.
The leaseholders, who were earning high sums of money they never had before, were also donating. “We were getting thousands from mom-and-pop farmers,” she said.
Range has paid about $1.3 billion to Washington County landowners for leases and royalties, according to company spokesman Matt Pitzarella.
For the United Way, the company held numerous fundraising competitions in the office, hosted golf outings and other fundraising events, and logged thousands of volunteer hours.
While records show Range typically gives the most, it’s not the only company investing in the community. Murphy said United Way has also received “very generous donations” from Range vendors, law firms representing energy companies, Noble Energy, Williams Partners, Chesapeake Energy, Rex Energy and others.
Consol Energy gave $40,000 last year to the Imperial Fire Department to add a training room in the department’s new fire station in Findlay Township. The company also contributed $80,000 to the Community Foundation of Greene County’s Educational Improvement Fund.
In northeast Pennsylvania, Cabot Oil & Gas donated $2.5 million in April 2014 to fund the Lackawanna College School of Petroleum & Natural Gas in Susquehanna County.
But there’s some concern among nonprofits that current market conditions will spell trouble for their bottom lines.
Some companies had to pull back, and some organizations are being affected, but most are sustaining donations through the downturn.
“We’re still doing well, even through the layoffs, these companies have not diminished their efforts,” Murphy said.
Range announced 55 layoffs last month, but the company continues to donate to nonprofits.
“Even during a challenging down cycle, Range remains committed to the communities where we live and work. We’re more creative in how we support these organizations, primarily through volunteer time and helping to connect area nonprofits with other resources and programs to achieve their goals,” Pitzarella said.
In recent years, the company gave about $10 million to nonprofits and civic organizations primarily in Washington County, he said.
But one of the organizations is based in Harrisburg.
John Plowman, the executive director of Hunters Sharing the Harvest, said industry donations have been essential to expanding the venison charity’s operations – especially in underrepresented counties.
The money generated by the natural gas industry paid for additional staff members, a bigger advertising push and eliminated the $15 copay deposited by hunters dropping off deer at butcher shops, he said.
Hunters Sharing the Harvest, which donates venison to food banks, has yet to see donations fall off, but Plowman thinks it’s just a matter of time.
“Because the impact and net effects of the industry’s restructuring and downsizing are still very recent…it’s too early to forecast, but so far we have not been adversely affected. However, when our corporate industry partners’ renewals come up for attention, we’ll no doubt see this change,” he said.
Junior Achievement of Western Pennsylvania has already faced some losses.
“We have seen a sizable decrease in funding but that has not shaken the spirit of our partnership with Range and other energy companies,” said CEO Dennis Gilfoyle.
Range has contributed nearly $200,000 to Junior Achievement, and more than a dozen employees volunteer for the organization, Pitzarella said.
The money helped the nonprofit establish the JA Careers in Energy program.
In the downturn, Range is “doing all they can to help us raise funds through special fundraising events and reaching out to other segments of the community on our behalf for support,” Gilfoyle said.
With fewer donations coming in, the nonprofit had to cut programs and currently has a hiring freeze in place, he said.
“Our volunteer network of 3,500 people is very strong and they are stepping up to help with additional funding ideas,” Gilfoyle said.
Dollar Energy Fund, which has helped about 2,000 households pay energy bills in recent years, has noticed a decrease in funding from industry donors.
However, lower gas prices have made energy costs more affordable for some of the families the organization would normally serve, “thus slightly reducing the overall demand for our program,” according to spokeswoman Jody Robertson.
Dollar Energy has received nearly $300,000 from the oil and gas industry. Of that, Range provided about $260,000.
Because each donation is matched dollar for dollar by utility partners, that support has resulted in about $600,000.
“The support from Range Resources specifically has been very important to Dollar Energy Fund and the clients we serve. Their initial contribution of $100,000 to our organization in 2009 was integral in establishing a connection between the industry and the households struggling to afford basic gas service,” Robertson said.
Mary Pat Joseph didn’t expect that oil and gas companies would be able to continue supporting some of the nonprofits during the industry downturn – a serious concern for the Cystic Fibrosis Foundation she leads in western Pennsylvania that does “life-saving work.”
“I…was very pleased to see that companies like Range Resources have made a great effort to…maintain their alliances and support levels,” said Joseph, the foundation’s executive director. “I can confidently state that this industry has been a consistent and caring partner to many of us in the nonprofit sector.”
Even if corporate donations start to decrease, the oil and gas money invested at the Washington County Fair will be evident for years to come, according to fair secretary Wayne Hunnell.
The millions donated helped revamp the fairgrounds and bring in bigger musical acts. For example, The Charlie Daniels Band will play at the fair on Aug. 18.
Range has contributed more than $1 million to the fair.
“Range remains the most active corporate neighbor in Washington County. We’re very proud of this work,” Pitzarella said.
By Candy Woodall
Via: PennLive
