Abigale Traska Case 12.1 Hull House Hull House was founded in Chicago in 1889 with the purpose of helping individuals with a lower socioeconomic status and was responsible for establishing a model for nonprofits for the following years. Hull House was supported mainly by private funding in its early years, but by 2012 it depended on the government for 85% of its funds. Hull House provides residential facilities and social services as well as a sense of community. One of the founders, Jane Addams, and other house residents worked for many social reforms such as public recreational facilities, child labor laws, juvenile courts, and women’s suffrage. By the end of the 21st century, the Hull House association expanded what they offered to their…show more content… Revenue had almost been cut in half from $41 million in 2001 to $23 million in 2012. To keep up with the demand, Hull House was borrowing money and had obtained substantial unfunded pension obligations. The debt ratio reached four times the industry standard, and the cycle of borrowing money couldn’t last much longer. There was disagreement about the cause of the forced closure of the Hull House, with some saying it was due to the economic climate and others saying it was the staff who were to blame for providing late financial statements and not revealing the severity of the situation. The president of the National Human Services Assembly stated that Hull House should’ve put their stubbornness to the side and looked for a partner rather than allowing the doors to close. The former chief executive of the Hull House shared that he proposed to two potential partners, but was shut down by the board since the board chair believed their debt was too large to be of any interest to partners. In an effort to save Hull House, staff attempted to reduce the nonprofits' dependence on the government by increasing fundraising and diversifying revenue
