Nonprofits & The Economy Survey: South Palm Beach County Results

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

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

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 (28)responses representing:
21,704 full-time staff members (611)
5,796 part-time staff members (146)
4,437 Board members (282)
49,911 Volunteers (1,715)
Average years operating: 30 (18)

The Respondents

Challenges

What We Found: Challenges
Similar results as last year & for South Palm Beach County

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.
“Our entire population has critical needs, as we serve the working poor. Our population has always been poor. In this economy, our patients are not finding work. Families are experiencing severe difficulties covering their most basic expenses.”
-Boynton Beach

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 need jobs. If they don't work they can't pay their bills, are being evicted and facing homelessness. People are emotional and stressed as so many have never been in this situation and in the past were able to provide for their families…”
- Boca Raton

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.
South Palm Beach
One organization
Stalled campaign due to economy
$80 Million increase over last year

What We Found: Organizational Actions

What We Found: Organizational Actions
Continuing to cut expenses and increase fundraising activities.
South PBC- Equal increase and decrease in demand for services
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.
“Our strategic planning consultant determined that staff is "red-lined". We cannot afford to hire more staff to relieve our current staff. Our Board has frozen salaries and stopped employer 401K contributions. Staff is overworked and very underpaid.”
-Boynton Beach

Other findings
TOP FOUR AREAS OF INTEREST
LARGEST DECREASE IN FUNDING MIX
Building endowment (higher rate in South PB County)
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

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.
“Facilitate collaborations and mergers among and between nonprofit providers of essential quality of life services.”
-Delray Beach

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
“The good news is that we have had to approach our programs very methodically to ensure we can develop sustained funding streams. This has led to the development of business systems that streamline processes and allow us to serve more people with less overhead than traditional providers.”
-Boca Raton

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
Your feedback is appreciated! Share your suggestions, comments and insights at www.yourpbc.org/economy
Sign up for Community Foundation E-News on our website to receive announcements on future funding and collaboration/training opportunities.

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

Nonprofits & The Economy Survey: South Palm Beach County Results

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

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Nonprofits & The Economy Survey: South Palm Beach County Results — Presentation Transcript

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