The executive director of YouthPride, an Atlanta organization that serves lesbian, gay, bisexual and transgender teens and young adults, said a decline in funding could force the nonprofit to scale back programs or even close later this year.

Terence McPhaul said the nonprofit needs at least $40,000 to continue operations.

“There’s no way we can survive without it,” he said. “That’s part of operations so we have to be able to pay people to keep them. It’s critical.”

YouthPride, which serves about 1,700 youth annually, is a “safe place” for LGBT youth and young adults from ages 13 to 24. During its 17-year existence, it has expanded to include free services such as counseling, discussion groups, an art program and yoga classes.

It also maintains a suicide prevention program that, by McPhaul’s count, has stopped 27 young people from taking their own lives.

“The economy has been hard on everyone,” he said, adding that several expected grants didn’t materialize. He said some potential donors have scoffed at contributing to an organization that focuses on helping LGBT youth.

McPhaul said the organization is considering moving from its current home in Inman Park (yearly rent: $50,000) to donated space or a less expensive facility. A task force has been formed to investigate how to save the nonprofit while strengthening its administration and board.

He also wants to see more contributions from the larger LGBT community, which accounts for 7 percent of YouthPride’s funding.

“We have to do a better job of telling people who we are,” McPhaul said. “We’re going to be out there every day asking for money. We hope we run across people who really realize that this is critical.”

It has been critical for William Bryan, 14, and his mother, Sharon, who make an 80-mile round-trip to YouthPride every Wednesday. William said he lost more than a dozen friends when he first came out.

“He didn’t feel like he was alone,” said Sharon Bryan. “After the first meeting, he was able to feel comfortable in his own skin.”

Another student, Alejandro Shelley, 16, found YouthPride through a friend. “It’s a great way to meet new people, people who are in the same boat as me,” he said.

His mother, Martha, said, “It was, for us, a lifeline.”

The weak economy has hurt many nonprofits. As donors tighten their belts, they often want the most impact when giving to charity.

“Most Atlanta LGBT organizations struggle to make ends meet and provide a consistent level of service with one or two staff members and a budget that is funded primarily through individual donations and one or two grants,” said Jeff Graham, executive director of Georgia Equality. “This is hardly a model of sustainability.”

According to a recent report by the Movement Advancement Project, a independent think tank that studies the LGBT movement, contributions from individual donors fell 14 percent in 2010. Increases in corporate giving, bequests, in-kind contributions and event revenue helped offset the decline.

Linda Ellis, executive director of the Health Initiative, formerly known as the Atlanta Lesbian Health Initiative, said the nonprofit saw a $20,000 funding loss in 2011 and had to dip into its reserves.

“My experience leading LGBT organizations is that it’s always been one of month to month,” she said. “It’s difficult for us to find support.” For several years, Ellis said the organization received funding from donors specifically focused on women, but when the mission broadened to include more than women’s health issues, some of that funding dried up.

“It’s more difficult now for us to support the programs that we’re running,” she said, although she expects to meet budget this year. “It means we’re going to have to work hard and be more creative about where we find the money. But I think it’s there.”