Nonprofits & The Economy
2nd Annual Survey 2010Understanding our community
• Tax-exempt, 501 (c )(3) public charity More than 250 funds
• $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 (79) responses representing:
21,704 full-time staff members (2,000) 5,796 part-time staff members (415) 4,437 Board members (464) 49,911 Volunteers (7,270) Average years operating: 30 (28)
The Respondents
Aging; 3% Arts & Culture; 12%
Community & Economic De-
velopment; 8%
Education; 15%
Environment; 3%
Grantmaking/Funding; 2%
Health & Human Services; 40%
Human & Race Relations; 1%
Religion; 2%
Other; 15%
Figure 1 - Respondents by Program Area
Broward; 12%
Dade; 7%
Martin; 21%
Palm Beach; 38%
St. Lu-cie; 13%
Other; 9%
Figure 2 - Respondents by County(ies) Served
Challenges
Recruiting qualified staff
Attracting new members/clients/participants
Competition with other nonprofits
Strategic planning and evaluation
Recruiting qualified, reliable volunteers
Meeting needs/interests of current members/clients/participants
Marketing our services/programs
Covering employee payroll, benefits and/or insurance costs
Obtaining funding
Recruiting donors
1.6
1.7
1.7
1.8
1.9
2
2.1
2.2
2.7
2.7
Current Challenges
What We Found: Challenges
Similar results as last year & for Central/Western communities
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.
“[We need] more funds and resources to meet the needs of the clients. Families are coming from all areas of the county for resources and information to help meet their basic needs: homeless, food stamps, work search, help with children, transportation, food etc..”
- Riviera 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).
“Our numbers are up about 100% for food. We are seeing people that have volunteered in the past asking for help
- Lake Worth
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.
Central/Western Goal: $32,375,000 Raised: $10,736,000
Raised to Date; $87,652,000
Still Needed; $209,763,000
Figure 7 - Capital Campaign Progress
COMBINED GOAL: $297,415,000
$80 Million increase over last year
Collaborate with other nonprofits
Use prior-year cash reserves
Borrow money
Cut nonessential expenses
Delay payment of bills
Delay payment of payroll
Eliminate programs
Increase fundraising activities
Turn away clients
Lay off staff
127
87
35
185
53
13
58
141
40
64
Organizational Actions(based on number of responses)
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.
“While the organization did not lay off any employees, many of the non-direct services positions, which were vacated during the year were not replaced.”
-West Palm Beach
Other findings
TOP THREE AREAS OF INTEREST
• Building endowment• Increasing volunteer
opportunities• Undertaking
collaborative fundraising efforts
• Many respondents also expressed an interest in the “greening” of business operation.
LARGEST DECREASE IN FUNDING MIX
• Foundation grants• Individual
contributions• Corporate donations
Significant decrease
Slight decrease
No change
Slight increase
Significant increase
30%
32%
16%
16%
7%
Endowment
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.
“Funds should be shared among all nonprofit organizations. We are all of the people and for the people.
-Pahokee
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
“These are challenging times but it also presents an opportunity to expand and analyze current programs and services to ascertain that they are fulfilling the mission of the agency.
-West Palm Beach
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.
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