Nonprofits Survey - Economic Downturn

We recently surveyed 46 nonprofit organizations that applied to our Competitive Grants Program in January 2009 to help us better understand how nonprofits are impacted by the recent economic downturn and the decisions they are making as a result. Significant findings as of March 31, 2009 include:

• 50% of the organizations surveyed experienced little or no significant changes in revenues in FY09.  Of the 23 minimally impacted, 6 saw their revenues increase. 
• Those reporting a significant negative impact appeared to be more seriously affected by losses in state and local funding as well as corporate and individual giving.
• Most nonprofits reported lower revenues from grants, as well as corporate and individual giving. 
• Organizations using revenues from endowments reported severe losses.
• Those with diversified revenue streams were doing better in FY09 than those with one primary source of funding (typically smaller nonprofits).
• Small organizations with minimal impacts in FY09 have engaged and active boards.
• Organizations serving the most critical and basic client needs were less affected by public funding cuts and seem more optimistic about their ability to raise funds for the increased demand for services.
• The majority of the organizations reported increased demand for services.
• During FY09 most nonprofits anticipated diminished resources and made the necessary adjustments to their budgets.
• Organizations are looking for appropriate reductions in expenditures, concentrating on more urgent and immediate expenses, postponing capital expenses, avoiding major purchases, reducing duplication of efforts, increasing collaborations, and looking for greater efficiencies. Some have experienced or anticipate reductions in personnel.
• All organizations expect 2010 to result in deeper cuts and are bracing for the occasion.
• All organizations plan to intensify their fundraising efforts. Smaller agencies plan to get their boards more intensely engaged in raising monies.