Nonprofits & The Economy Survey: Overall Results

Nonprofits & The Economy 2nd Annual Survey 2010
Understanding our community

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 responses representing:
21,704 full-time staff members
5,796 part-time staff members
4,437 Board members
49,911 Volunteers
Average years operating: 30

The Respondents

Challenges

What We Found: Challenges
Similar results as last year

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.
“Client needs are overwhelming with no solution in sight. Staff reductions for administrative and development positions has the agency running leaner than it ever has: 7% administrative cost overall.”
- Survey respondent

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).
“People are in such need that they line up hours before we give out a simple box of food and then will wait hours more in their cars in the Florida heat to get their food. They are desperate. Most are skipping meals, even the children.”
- Survey respondent

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.
$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.
“More non-profits are willing to work together in fundraising activities and share in the profits in order to continue to service their clients…. I believe we are learning to collaborate more effectively and to think out of the box more!”
-Survey Respondent

Other findings
TOP THREE AREAS OF INTEREST
LARGEST DECREASE IN FUNDING MIX
Building endowment
Increasing volunteer opportunities
Undertaking collaborative fundraising efforts
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.
“As funders, you are in a unique position to observe our local non-profit world and how service agencies interact with one another and impact our communities as a whole. Given this, you also may be in a unique position to act as a catalyst for change, for improvements to the overall effectiveness of non-profits...what each of us wants and works to achieve -- a better life for all.”
-Survey Respondent

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
“Some of our supporters have been hit hard by the economy and can no longer give as they have in the past. Many still give...but not as much. Many have offered to volunteer since they no longer can give. It warms my heart to see so many believe in our mission!”
-Survey Respondent

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

Upcoming Local Information/Networking Sessions
Network and share your insights!
North Palm/Martin County: June 18, 3-4:30 p.m. , Hobe Sound
Central/Western Palm Beach County: June 14, 9-10:30 a.m. , Royal Palm Beach
South Palm Beach County: June 28,9-10:30 a.m., Boca Raton
Sign up online at www.yourcommunityfoundation.org/economy

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

Nonprofits & The Economy Survey: Overall Results

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

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Nonprofits & The Economy Survey: Overall Results — Presentation Transcript

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