Step inside the activity room, or the day-care room, or the cafeteria at Wellcome Manor, and you’ll see why this addiction treatment program is unique.

Children are playing, eating snacks, pedaling tricycles. While their moms are working on recovery, they are just a few feet away working hard at being kids.

Although other local treatment facilities exist, there aren’t many that allow an addict’s children to live with her at the treatment center.

Doing so, studies show, dramatically improves addicts’ chances to repair damage done to their relationships with their children, which helps both mom and the kids.

Keeping families together reduces the chances of the kids entering the taxpayer-supported criminal justice system one day. It also reduces the number of kids in the taxpayer-supported foster care system.

“This is a really good example of why we do what we do,” Wellcome Manor Coordinator Gwenn Wolters says as she nods to a group of smiling toddlers huddled around a table and drinking milk. “If somebody doesn’t do something, they’ll be in a juvenile program some day.”

Wolters is among the many nonprofit leaders around the state holding their breath and waiting to see what the recession will bring them.

Already nonprofits are seeing fewer dollars coming in from donors. And some nonprofits, especially ones dealing with low-income families or others in need, are seeing increased demand for their services.

Don’t panic yet

AmyJo Lennartson, regional coordinator for the South Central Chapter of the Minnesota Council of Nonprofits, said nonprofits in southern Minnesota are experiencing the same troubles as those in the Twin Cities.

The difference, she said, is that nonprofits in the Twin Cities have more grant opportunities available to them.

Lennartson, who communicates regularly with area nonprofits, says nonprofits haven’t begun to panic. Yet.

“There’s definitely a lot of concern and they are getting more creative, for sure,” she said.

One recent trend is more openness to collaboration. Lennartson said community leaders have been saying for years they’d like to see more collaboration among nonprofits. Now that the economy is faltering, collaboration among nonprofits to save money is becoming more popular.

There’s also a demand for skill-building workshops such as fundraising.

“We definitely listen to the nonprofits,” she said. “And I’m getting calls every day.”

Catch 22

At the Mankato Foundation, which recently announced a series of grant awards, times are getting tight.

The group’s committee that hashes through grant requests and forwards recommendations to the board did so only after reducing its usual amount of grant money. When that amount went to the full board, it cut the amount in half.

Rachel Schott, executive director of the Mankato Foundation, said pulling back on how much is given is hard for a group that wants to be there for so many worthy grant recipients.

But part of “being there” means living within means.

“We want to make sure we’re here for the long term and that we support the community for the long term,” Schott said. “These are difficult decisions. We want to support the organizations that are here, but at the same time, we want to make sure we’re here.”

Some positive signs

Many nonprofits in the region live and die by the health of the Mankato Area United Way. Director Laura Bowman said the annual fundraising campaign is a little ahead of schedule so far. They’re up about 1 percent over last year.

“To me that’s a sign that generosity is continuing,” Bowman said.

About 75 percent of the money the United Way uses comes from individual contributions through payroll deduction.

“That’s our bread and butter,” Bowman said.

But being ahead of schedule doesn’t change the fact more of the organizations that look to the United Way for help are going to be asking for more this year.

“They’ve seen an increase in people who need their services, which ultimately means they need more funding,” Bowman said. “And most of them are running on a shoestring budget anyway.”

Bowman said the economy has resulted, in some cases, to job losses for people who never needed help before. She fears a time when groups such as the United Way and others become merely reactive, helping people struggling right now instead of also providing programs for children or programs that help people learn to stay self-sufficient.

“What could happen is that we go into a mode where we’re only helping crises,” she said. “That is what’s happening with many communities and that is a discussion our community is going to have to have. What is going to be the priority?”

Public dollars

Wolters, the treatment center coordinator, said she’s worried about what could happen if her budget is cut.

Wellcome Manor is funded through the state Health and Human Services budget. Specifically, it is funded through the consolidated treatment fund, which covers the cost of women and their children (those 11 years old and younger) to live at the facility.

“If they don’t cut the consolidated treatment funds, we’ll be OK,” Wolters said. “If they do, there won’t be enough ... Those consolidated treatment funds not only pay for our program, but also House of Hope and other programs.”

That battle will be fought in St. Paul.

Closer to home, Lennartson says she’s optimistic about how nonprofits will fare. The Mankato area, she said, already has shown it sees the value of collaboration — endeavors such as Envision 2020 brought people from all walks of life together for the sake of planning for the future.

“It’s a really vibrant nonprofit community. People kind of all know each other. Those things make relationships strong,” she said. “I think this community will come out stronger as a result of having to work together.”