Report on the State of the Nonprofit Sector (2010)
Based on data and information collected by the Nonprofit Finance Fund and The Community Foundation’s own research the outlook for the nonprofit sector over the next year still looks to be challenging, at best. Nonprofits in Greater New Haven and Connecticut are not alone in these challenges. Nationally the sector is bracing for another tough year and in most cases the expectation is that 2010 will be more difficult than 2009.
This year, The Community Foundation added a question to its responsive new grant application inviting local nonprofits to share the impact of the economy on their ability to provide services. Overwhelmingly, the response mirrors that of other nonprofits across the country. Leadership from one local nonprofit explained, "increased competition for diminished private donations and limited funding pots will not meet the need. Overloading staff, increasing the burden on volunteers and cutting essential supports is a recipe for organizational dysfunction and individual staff burnout, and will not serve the community in the long run."
Key Findings in Greater New Haven
- 88% of nonprofits expect 2010 to be as difficult or more difficult for their organizations than 2009; only 12% expect 2010 will be financially easier for their organizations; 98% expect the financial outlook for those they serve to be as difficult or more difficult than 2009
- Nearly 80% expect an increase in demand for services in 2010; more than 50% do not expect to be able to fully meet this demand level
- Nearly all nonprofits are expecting continued declines in all sources of revenue during 2010
- Only 20% of organizations expect to end 2010 above break-even; 24% of organizations ended 2009 with an operating surplus
- The majority, 61% have three months or less of cash available; 14% have none
- Many nonprofits report to The Foundation that they have eliminated staff, have asked staff to volunteer their time and are relying more heavily on board members and volunteers to do the day-to-day work
- Nonprofits report that the current climate they are forced to operate in is creating staff burn out and dysfunction within their organizations
- The most helpful TA that nonprofits received have been in the areas of scenario/contingency planning and developing tools to communicate with their boards.
To see the full results from the Nonprofit Finance Fund's Survey & how nonprofits are responding: