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Nonprofits & The Economy Results: Northern Palm


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The Community Foundation for Palm Beach and Martin Counties, in partnership with Allegany Franciscan Ministries, conducted the 2nd Annual Nonprofit Survey to gather data regarding the needs in the community, the state of nonprofits and how best funders could be of assistance. Respondents were asked about their current challenges, the impact the economic downturn has had on the services they offer and their most pressing funding needs. Here are the overall results. A recording of a webinar that corresponds with this presentation is also available at

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Nonprofits & The Economy Results: Northern Palm

  1. 1. Nonprofits & The Economy 2nd Annual Survey 2010<br />Understanding our community<br />Northern Palm Beach & Martin County Perspective<br />
  2. 2. <ul><li>Tax-exempt, 501 (c )(3) public charity More than 250funds
  3. 3. $100 million in total assets
  4. 4. Last year awarded nearly $9 million in grants and scholarships
  5. 5. Cumulative grants of nearly $81 million
  6. 6. Supported by hundreds of donors</li></li></ul><li>Allegany Franciscan Minstries<br />A non-profit Catholic organization focused on improving the overall health status of individuals<br />Guided by the tradition and vision of the Franciscan Sisters of Allegany, provides grants to organizations in three regions of Florida<br />
  7. 7. Nationwide Trends in Responding<br /><ul><li>Typical Cost-cutting Measures
  8. 8. Limiting travel
  9. 9. Eliminating employer contributions to health insurance, retirement
  10. 10. Eliminating professional development options
  11. 11. Enforced furloughs, job sharing, reduction from full-time to part-time
  12. 12. Cutting salaries
  13. 13. Across-the-board budget cuts</li></ul>The New-New Thing:<br />Strategic planning <br />became even more essential<br />
  14. 14. Nationwide Trends in Responding<br />Governance Front & Center<br />Board members becoming activated on issues of policy & practice<br />The Dreaded 990s<br />Environment of increased public scrutiny and concern with education and communication<br />Conflict of interest, whistle blower policies, compensation<br />Exec., audit and investment committees became more active, emphasis on oversight & fiscal responsibility<br />
  15. 15. Local Perspective: 2nd Annual Nonprofits and the Economy Survey<br />Pulse of the nonprofit community<br />367 (48)responses representing:<br />21,704 full-time staff members (858)<br />5,796 part-time staff members (411)<br />4,437 Board members (644)<br />49,911 Volunteers (5,548)<br />Average years operating: 30 (22)<br />
  16. 16. The Respondents<br />
  17. 17. Challenges<br />
  18. 18. What We Found: Challenges<br />Similar results as last year & for Martin/North PBC<br />
  19. 19. What We Found: Challenges<br /><ul><li>Funding for operating expenses emerged as a top priority for organizations in light of increase of demand for service.
  20. 20. 75% felt some degree of vulnerability and 2% noted that the organization would cease operations if the economy did not improve soon.</li></ul>“At a time when need for services in the community is increasing, we are faced with cutting programs due to increasing deficits.<br /><ul><li>Palm Beach Gardens</li></ul>“There has been a significant increase in the number of households seeking financial aid for rent, mortgage payments and foreclosure prevention assistance.”<br />-Indiantown<br />
  21. 21. Areas of Highest Need<br /><ul><li>Majority of the population has been affected in light of the economic downturn.
  22. 22. 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).</li></ul>“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…”<br />-Stuart<br />
  23. 23. What We Found: Capital Campaigns<br />54 respondents currently undertaking a capital campaign.<br />Avg. goals: $7 million+<br />42% of funds have been acquired ($87.7 million)<br />34 respondents are postponing plans to launch a capital campaign. <br />Martin/North PBC<br />Goal: $77,000,000<br />Raised: $18,600,000<br />$80 Million increase over last year<br />
  24. 24. What We Found: Organizational Actions<br />
  25. 25. What We Found: Organizational Actions<br /><ul><li>Continuing to cut expenses and increase fundraising activities.
  26. 26. New trend: more organizations reported they are collaborating with other nonprofits.
  27. 27. 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.</li></ul>“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.”<br />-Stuart<br />“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.”<br />-North Palm Beach<br />
  28. 28. Other findings<br />TOP THREE AREAS OF INTEREST<br />LARGEST DECREASE IN FUNDING MIX<br /><ul><li>Building endowment
  29. 29. Increasing volunteer opportunities
  30. 30. Undertaking collaborative fundraising efforts
  31. 31. Many respondents also expressed an interest in the “greening” of business operation.
  32. 32. Foundation grants
  33. 33. Individual contributions
  34. 34. Corporate donations</li></li></ul><li>What We Found: Endowments Suffered<br />
  35. 35. Gauging Interest<br />Nonprofits demonstrated a strong interest in:<br />Building endowment<br />Increasing volunteer opportunities<br />Undertaking collaborative fundraising efforts<br />Many respondents also expressed an interest in the “greening” of business operation.<br />
  36. 36. Suggestions to Funders in addition to Giving<br />Nonprofits repeatedly noted the need for operational support and assistance in establishing partnerships.<br />Many also indicated the need for training and advocacy on behalf of the nonprofit sector.<br />“[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.”<br />-Palm City<br />“Encourage donor designated funds, or do donor drives to increase funding in certain areas not represented.”<br />- Jupiter<br />
  37. 37. Positive Impact<br />Respondents were asked to share some good news in this year’s survey. Respondents praised:<br />The dedication of staff and volunteers<br />Increased partnerships<br />Improved business operations<br />“ 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.”<br />-Stuart<br />
  38. 38. Good News<br />
  39. 39. National Outlook<br /><ul><li>Some states revoking charities’ tax exemptions
  40. 40. Public entities looking at taxing nonprofits for new, public sources of revenue
  41. 41. Private/nonprofit partnership as new models
  42. 42. Mergers and acquisitions
  43. 43. Increased use of technology
  44. 44. Some shifts toward eligibility to enable operational support as a foundation funding priority
  45. 45. Giving is down but donors remain engaged in 2010</li></li></ul><li>The Future Outlook: Local View<br /><ul><li>Leveraging is key to meeting critical needs
  46. 46. Restructuring: Tough choices ahead: consolidate, collaborate, merge or exit
  47. 47. Necessity of increased cost efficiencies
  48. 48. Technology/social media as an enabler
  49. 49. Best guess: Funding is going to continue to be constrained and highly competitive</li></li></ul><li>Your Insights<br />Continue to share your suggestions, comments and insights at<br />Stay tuned for future announcements.<br />
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