the state of the new jersey non-profit community...december 6, 2017 somerset, nj annual nj...

February 25, 2019

The State of the

New Jersey Non-Profit

Community

• Promoting New Jersey’s non-profit community

• Public policy

• Research (non-profit statistics, trends)

• Annual conference

Advocacy/Public Education

• Management/compliance assistance

• Workshops/seminars/Webinars

• PublicationsCapacity Building

• E-newsletters, resource lists, info/referral

• Free job postings

• Cost saving benefits Member Services

Since 1982, the champion & go-to resource for and about New Jersey’s non-profit community

Here for YOUnjnonprofits.org

4www.njnonprofits.org/Events.html

5

December 6, 2017

Somerset, NJ

Annual NJ Non-Profit Conference

The “don’t miss” conference for NJ non-profits

600 non-profit leaders and allies

Save the Date!

December 4, 2019 Somerset, NJ

Thanks to

for supporting

New Jersey Non-Profits 2019: Trends and Outlook

Sally GlickPrincipal of the Firm and Chief Growth Strategist

Jonathan R. PearsonExecutive Director, Corporate

Social Responsibility

What we’ll cover today:

Overview of NJ Non-Profit Community

Highlights of 2019 Survey Findings

Why this Matters

What Can we Do?

Food pantries

Afterschool programs

Museums

Hospitals

Environmental protection

Disaster relief

Education

Mental health

Public radio

Philanthropy

Drug/alcohol prevention

Faith-based organizations

Housing

Senior care

Human service

Social justice

Touching every aspect of our lives

Non-Profits MATTER

Non-Profits MATTER

34,000+ 501(c)(3) orgs in NJ

324,000 employees 9.7% of the state’s private work force

More than construction, transportation, public utilities, finance and insurance industries

$42 billion in expenditures annually

1.6 million volunteers providing $5.3 billion in service

Sources: IRS Business Master File of Exempt Organizations; Urban Institute National Center for Charitable Statistics; U.S. Bureau of Labor Statistics; Corporation for National and Community Service; Independent Sector

TheSurvey

www.njnonprofits.org/2019AnnualSurveyRpt.pdf

Growing DEMAND

National and NJ surveys:

2/3 to 4/5 of survey respondents

consistently report

rising demand for services.

This upward trend has been reported by non-profits for

numerous consecutive years.

2019 NJ Non-Profit Survey:

66% of NJ respondents said

demand had risen in 2018.

76% projected that demand would

continue to rise in 2019.

Sources: Nonprofit Finance Fund, State of the Sector surveys, 2018 and prior years; Center for

Non-Profits, New Jersey Non-Profits: Trends and Outlook survey reports, multiple years

Resources Not Keeping Pace

Less than two-fifths (38%) of 2019 survey respondents reported

funding increases in the previous fiscal year…

…but 59% reported that

expenses had increased in the same period...

Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2019

Resources Not Keeping Pace

Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2019

…and only 32% reported that

support and revenue had exceeded expenses in their last fiscal year.

Resources Not Keeping Pace

Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2019

7%

6%

3%

5%

14%

7%

2%

6%

9%

32%

12%

9%

20%

31%

17%

15%

1%

1%

7%

7%

16%

12%

11%

4%

4%

13%

11%

3%

6%

15%

14%

18%

22%

17%

23%

31%

22%

20%

13%

19%

25%

32%

29%

18%

34%

41%

40%

39%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Other

Bus. Ventures/Commercial Activity

Local government

County government

State government

Federal government

United Way

Endowment

Planned Giving

Special Events

Investment Income

Membership Dues

Fees for service

Donations from individuals

Corporate donations

Private foundations

% responses reporting funding change per category (N=161)

Funding Changes 2018 vs 2017

Increase Decrease No significant change

Resources Not Keeping Pace

Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2019

Two-thirds (68%) of 2019 survey respondents predicted that

expenses would increase in 2019…

…but only 49% expected that

overall funding would increase.

2019 Projections

Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2019

3%

10%

5%

9%

16%

8%

1%

5%

15%

31%

12%

9%

26%

44%

31%

27%

1%

3%

4%

11%

10%

6%

3%

2%

8%

7%

1%

2%

6%

4%

7%

10%

12%

22%

31%

26%

23%

13%

18%

19%

34%

21%

22%

27%

30%

32%

32%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Other

Business venture/commercial activity

Local government

County government

State government

Federal government

United Way

Endowment

Planned Giving

Special Events

Investment Income

Membership dues

Fees for service

Donations from individuals

Corporate donations

Private foundations

% responses reporting funding change per category (N=157)

Predicted Funding 2019 vs 2018

Increase Decrease No significant change

2018 Predictions vs. 2019 Survey

Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2018 and 2019

In last year’s survey, 49% of respondents predicted thatindividual gifts would increase in 2018.

But only 31% of this year’s respondents reported that individual gifts

had actually increased in 2018.

2018 Predictions vs. 2019 Survey

Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2018 and 2019

In last year’s survey, 35% of respondents predicted thatcorporate funding would increase in 2018.

But only 17% of this year’s respondents reported that corporate funding had

actually increased in 2018.

2018 Predictions vs. 2019 Survey

Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2018 and 2019

In last year’s survey, 34% of respondents predicted thatfoundation funding would increase in 2018.

But only 15% of this year’s respondents reported that foundation

funding had actually increased in 2018.

TAX REFORM

ReducedCharitableGiving

The Federal Charitable Income Tax

Deduction in NJ

Nearly half (46%) of NJ households who claimed federal

charitable tax deductions in 2016* had incomes of under

$100,000. They donated more than $1.5 billion to charity that

year – nearly one-quarter of all claimed gifts.

Four-fifths (81%) of NJ households who claimed federal

charitable deductions in 2015 had incomes of under $200,000.

They gave $3.2 billion to charity that year – 48% of all claimed

gifts.

More than 35% of individual returns in NJ had taken a charitable deduction in 2016.

Source: Internal Revenue Service, Individual Income and Tax Data, by State and Size of Adjusted Gross Income, Tax Year 2016 (most recent year available)

23

Charitable Giving Incentive Legislation

Pending BipartisanLegislation –

Federal and NJ

24

Repeal of Non-Profit Transportation Tax Introduced

NJ Non-Profits’

Top Issues

Top Challenges

for Individual

NPs

Financial Uncertainty

53%Branding/ Commun.

48%

Benefits costs 33%

Low org visibility

29%Increased demand for

services 25%

Need strategic planning

28%

Staffing (affording)

34%

Boards 46%

Source: Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2019

Top Challenges for the NP

Community

Infrastructure/Capacity Bldg 64%

Boards (Attracting)

46%

State fiscal policy/

budgets 38%

Advocacy/ Lobbying

Rights 28%

Diversity/ Equity in NPs

24%

Federal Funding /

Budget 29%

Giving/ volunteering

incentives 37%

Attract/retain qualified

workers 39%

Fndn / Corp Funding 48%

Source: Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2018

Other Observations by Respondents

• Uncertainty about the federal tax law and its impact on charitable giving, the state’s non-profits, and New Jersey in general

• Escalating administrative costs associated with government grants and contracts

• The need for increased funding to cover projected costs of employment law changes in NJ

• Impact of federal policies on vulnerable people

• The need to continue to strengthen relationships with policy makers at all levels of government

Other Issues(2019)

Seeking new/alternative revenues

Increasing volunteer recruitment

Increasing advocacy

New & more collaborations

Program adjustments

Budget adjustments

Special events

Sharing services

Actions Non-Profits are Taking

Overall circumstances

compared with one year ago

Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2008-19

Predictions for the coming

year (2008-2019)

How have past predictions panned out from year

to year?

Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2008-18

Source: Center for

Non-Profits, NJ Non-

Profit Issues/Trends

surveys, 2008-2019

WHY DOES THIS

MATTER?

NEEDS a strong non-profit

community

Resource Squeeze

CAPACITY GAP

What can we do?

38

SPEAK OUT

Tell the Story

Improve Understanding About Non-Profits

39

What can we do?

• Streamline laws/regulations

• Strengthen charitable giving incentives

Improve the Fundraising /

Operating Climate for Non-Profits

Strengthen Gov’t/ Non-Profit Partnerships

•Reduce bureaucracy

•Contract Reform

• Increase dialogue with government officials

• Joint problem-solving

Strengthen Government/ Non-Profit Partnerships

What else can we do?

Stay informed/educated

Invest in advocacy

Diversify revenue streams

Look for program efficiencies

Collaborate

KNOW YOUR DONORS/FUNDERS!

CHANGE THE DIALOG

Support “real cost” funding

Invest in capacity building, leadership development

Keep communications flowing

What can we do?

Stand Together

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non-profit community.

• The Center as your non-profit advocate

• Exclusive learning and networking opportunities

• FREE job postings

• Priority access to our HelpDesk experts

• Access to savings worth thousands of dollars

• 30% OFF registration for the 2019 NJ Non-Profit

Conference (Dec. 4, 2019)

• And much more!

www.njnonprofits.org/Membership.html

www.njnonprofits.org/2019AnnualSurveyRpt.pdf

Stay in touch!

Join our E-MAIL LIST

@njnonprofits

@NJ_Nonprofits

company/center-for-nonprofits

@njnonprofits

njnonprofits.org

Linda M. Czipo

President & CEO

Center for Non-Profits

Phone: 732/227-0800

E-mail: lczipo@njnonprofits.org

Web: www.njnonprofits.org

THANK YOU!

Blog: www.njnonprofits.org/blog