COVINGTON, Ky. — A community staple in Covington, Point Perk is celebrating its 10th anniversary on the corner of West Pike Street and Washington Street. While business is steady — even growing — concern is brewing over an uncertain funding future.
The shop is run by Northern Kentucky nonprofit Point Arc, which predominantly receives funding from donors versus government grants, but looks to be impacted by the recent White House effort to freeze previously-awarded federal assistance.
"The word freeze kind of explains it all," said Leslie Vickers-Kittle, vice president of Point Arc of Northern Kentucky. "(This freeze effort) affects us greatly, and we have to be careful that when all that's taken away, we still have the ability to take care of our individuals."
Learn more about the impacts on Point Arc, and subsequently Point Perk, here:
In January, the Trump Administration through its Office of Budget Management (OBM) issued a memo calling for a funding freeze of trillions of dollars worth of previously allocated federal funding, including grants awarded to a plethora of U.S. nonprofits.
That effort is now making its way through the courts. On Tuesday, a Biden-appointed federal judge indefinitely blocked the federal aid freeze, calling it "ill-conceived."
While the effort is currently paused, Ken Coggashell said, the damage may have already been done as some Tri-State nonprofits feel poised to pivot to other funding sources.
"We've never seen this kind of just wholesale slashing of budgets," said Coggashell, executive director of the Association of Fundraising Professionals of Greater Cincinnati. "I think the impact on nonprofits and on civic society and people's lives in general, has the potential to be extremely serious."
Vickers-Kittle said Point Arc is preparing for the possibility there is increased competition for the same amount, or a lesser amount, of donor money — as nonprofits that rely on government grants look to other funding streams.
"We can see the hit right now, actually. So it does make a difference," she said.
While not disclosing which foundation or donor source, Vickers-Kittle gave the following example to convey the freeze attempt's current impact: one foundation previously awarding a $75,000 donation is now only offering a portion of that — $10,000.
Point Perk is one of several subsidiaries the nonprofit operates in the region, specifically with the mission of employing people with intellectual and developmental disabilities (IDD).
Braden Smith, who Vickers-Kittle calls Point Perk's "top salesman," has worked in the shop for two years.
"What is your favorite part about the job?" we asked Braden during a sit-down interview.
"This is the best job ever," Smith, who has autism, said with a smile. "Because it's the best job ever."
Smith refers to himself as a "bro-rista," in place of the traditional barista title that comes with the role. He said the best part is the friendships he's made with some of Point Arc's more than 65 other employees who have IDDs.
"How does it make you feel to have so many friends?" we asked.
"Important," he said. "My heart."
"We're very protective of our family, and we like to pour into them. So we need those donations to go forward," Vickers-Kittle said. "And, we let them know their value and their importance, where a lot of people don't give them that chance."
As the threat of funding shortfalls looms ahead, Point Perk has little choice but to stay loyal to its mission and keep the coffee flowing, even if funding isn't.
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