Washington Post Examines Not-for-Profit Group's Inability to Cover Costs of Administering Ryan White Funds
April 21, 2006
The Washington Post on Friday examined the Manassas, Va.-based not-for-profit group Prince William Interfaith Volunteer Caregivers' inability to cover the administrative costs associated with Ryan White CARE Act funding. According to federal guidelines, up to 10% of the funds awarded through Ryan White grants can be used to cover the costs of program administration, and the remainder must be spent on direct HIV/AIDS-related services. However, the amount of money provided under the 10% cap often is insufficient to cover the expenses associated with the services, the Post reports. Interfaith, which receives about $500,000 annually in Ryan White grants, might not be able to apply for the federal money for the upcoming fiscal year because the organization does not have the funds to administer the grant, Interfaith Executive Director Robert Moon said. The organization has applied for other funding, such as $73,000 from Manassas and Prince William Counties, but its requests were denied because the counties were unsure if Interfaith had the financial stability to administer the grants effectively. The counties also asked why the group has not sought private donations to help cover expenses. According to the Post, other small not-for-profit groups also do not have the time or the staff to administer the program and do not have enough money to cover the necessary additions. "We're starting to see this pattern with all of our vendors," Michelle Simmons -- director of human services for the Northern Virginia Regional Commission, which distributes some Ryan White funds to not-for-profits in the area -- said. Philippe Chiliade -- medical director of the Whitman-Walker Clinic, which is the largest provider of HIV/AIDS-related services in the region -- said that for larger grant recipients such as hospitals the 10% cap on administrative funds is reasonable but is "unrealistic" for smaller not-for-profit groups. "There is a painfully long list of administrative burdens to maintain Ryan White dollars," Stacie Balderston, HIV/AIDS grant manager for the regional commission, said, adding, "It forces organizations to do crazy things like have nurses fill out grant applications." Moon said he hoped the Prince William and Manassas governments would reconsider and help Interfaith, but added that the organization is trying to find another way to "stay viable" (Stewart, Washington Post, 4/21).
This article was provided by Henry J. Kaiser Family Foundation. It is a part of the publication Kaiser Daily HIV/AIDS Report. Visit the Kaiser Family Foundation's website to find out more about their activities, publications and services.