Nonprofits & The Economy Results: Northern Palm

Nonprofits & The Economy 2nd Annual Survey 2010
Understanding our community
Northern Palm Beach & Martin County Perspective

Tax-exempt, 501 (c )(3) public charity More than 250funds
$100 million in total assets
Last year awarded nearly $9 million in grants and scholarships
Cumulative grants of nearly $81 million
Supported by hundreds of donors

Allegany Franciscan Minstries
A non-profit Catholic organization focused on improving the overall health status of individuals
Guided by the tradition and vision of the Franciscan Sisters of Allegany, provides grants to organizations in three regions of Florida

Nationwide Trends in Responding
Typical Cost-cutting Measures
Limiting travel
Eliminating employer contributions to health insurance, retirement
Eliminating professional development options
Enforced furloughs, job sharing, reduction from full-time to part-time
Cutting salaries
Across-the-board budget cuts
The New-New Thing:
Strategic planning
became even more essential

Nationwide Trends in Responding
Governance Front & Center
Board members becoming activated on issues of policy & practice
The Dreaded 990s
Environment of increased public scrutiny and concern with education and communication
Conflict of interest, whistle blower policies, compensation
Exec., audit and investment committees became more active, emphasis on oversight & fiscal responsibility

Local Perspective: 2nd Annual Nonprofits and the Economy Survey
Pulse of the nonprofit community
367 (48)responses representing:
21,704 full-time staff members (858)
5,796 part-time staff members (411)
4,437 Board members (644)
49,911 Volunteers (5,548)
Average years operating: 30 (22)

The Respondents

Challenges

What We Found: Challenges
Similar results as last year & for Martin/North PBC

What We Found: Challenges
Funding for operating expenses emerged as a top priority for organizations in light of increase of demand for service.
75% felt some degree of vulnerability and 2% noted that the organization would cease operations if the economy did not improve soon.
“At a time when need for services in the community is increasing, we are faced with cutting programs due to increasing deficits.
Palm Beach Gardens
“There has been a significant increase in the number of households seeking financial aid for rent, mortgage payments and foreclosure prevention assistance.”
-Indiantown

Areas of Highest Need
Majority of the population has been affected in light of the economic downturn.
Many of most vulnerable are newly affected (children, low to mid income families, elderly, jobless, etc.) and people are facing difficulties in many areas (education, unemployment, housing, healthcare, hunger).
“Due to the economy and high unemployment rate, the characteristics of the population we are serving has expanded to include formerly "financially secure" individuals and families who, through no fault of their own, are now desperate and do not have many options to alter their situation; they simply don't know where to turn…”
-Stuart

What We Found: Capital Campaigns
54 respondents currently undertaking a capital campaign.
Avg. goals: $7 million+
42% of funds have been acquired ($87.7 million)
34 respondents are postponing plans to launch a capital campaign.
Martin/North PBC
Goal: $77,000,000
Raised: $18,600,000
$80 Million increase over last year

What We Found: Organizational Actions

What We Found: Organizational Actions
Continuing to cut expenses and increase fundraising activities.
New trend: more organizations reported they are collaborating with other nonprofits.
40% of respondents reported experiencing negative cash flow in the past 12 months (a 15% increase over last year’s results) and 30% of those attributed the need to borrow money due to unmet fundraising goals.
“We asked for voluntary salary reductions and two-thirds of the staff gave between 5 and 20 percent of their wages for nine months last year.”
-Stuart
“The biggest need for our organization is fundraising. Our organization has been sustained by 95% grants, and we are trying to fundraise in order to offset the economic decline and lack of grants available.”
-North Palm Beach

Other findings
TOP THREE AREAS OF INTEREST
LARGEST DECREASE IN FUNDING MIX
Building endowment
Increasing volunteer opportunities
Undertaking collaborative fundraising efforts
Many respondents also expressed an interest in the “greening” of business operation.
Foundation grants
Individual contributions
Corporate donations

What We Found: Endowments Suffered

Gauging Interest
Nonprofits demonstrated a strong interest in:
Building endowment
Increasing volunteer opportunities
Undertaking collaborative fundraising efforts
Many respondents also expressed an interest in the “greening” of business operation.

Suggestions to Funders in addition to Giving
Nonprofits repeatedly noted the need for operational support and assistance in establishing partnerships.
Many also indicated the need for training and advocacy on behalf of the nonprofit sector.
“[Help] promote their support in the media with more vigor…I think that foundations have a credibility factor that can could benefit the organizations they support by communicating why they are supporting the organization.”
-Palm City
“Encourage donor designated funds, or do donor drives to increase funding in certain areas not represented.”
- Jupiter

Positive Impact
Respondents were asked to share some good news in this year’s survey. Respondents praised:
The dedication of staff and volunteers
Increased partnerships
Improved business operations
“ I personally think we will be a stronger organization having survived this storm and be more focused about what we do and why we do it.”
-Stuart

Good News

National Outlook
Some states revoking charities’ tax exemptions
Public entities looking at taxing nonprofits for new, public sources of revenue
Private/nonprofit partnership as new models
Mergers and acquisitions
Increased use of technology
Some shifts toward eligibility to enable operational support as a foundation funding priority
Giving is down but donors remain engaged in 2010

The Future Outlook: Local View
Leveraging is key to meeting critical needs
Restructuring: Tough choices ahead: consolidate, collaborate, merge or exit
Necessity of increased cost efficiencies
Technology/social media as an enabler
Best guess: Funding is going to continue to be constrained and highly competitive

Your Insights
Continue to share your suggestions, comments and insights at www.yourpbc.org/economy
Stay tuned for future announcements.

To learn more:
www.yourcommunityfoundation.org/economy
and sign up for our e-news list!

Nonprofits & The Economy Results: Northern Palm

by Community Foundation for Palm Beach and Martin Counties on Jun 28, 2010

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