National Council of Nonprofit Associations

From February 3 through 13, the Alliance of Arizona Nonprofits queried nonprofits across the state about the effects of the recession on their operations. Responses from 87 organizations approximately reflect the diversity of all organizations in Arizona, based upon geography, mission and budget. Organizations providing services in every county of Arizona were included in the survey.

The conclusion of "Finding a Way," demonstrates that while revenues are down and services are affected, Arizona nonprofits are being creative about finding a way to keep essential services afloat during the recession.

A summary of the survey findings shows that:

• Nonprofit revenues are down an average of 18% and 64% of organizations expect them to decline further in 2009.
• One-quarter of nonprofits have laid off staff or plan to enact layoffs this year. That could translate into more than 5,000 nonprofit employees out of work.
• Meanwhile, 75% nonprofits saw the demand for their services rise during 2008 and more than 80% expect that to happen in 2009.
• Therefore, because of tight budgets, many Arizona residents and communities will be affected: nearly 40% of organizations will either reduce the level of service or the number of people served as a result.

Nonetheless, nonprofits have long been resilient during lean times, and leaders report creative approaches to responding to the crisis.

• Overall, 44% of organizations report that they will absorb the combination of service increases and falling revenues by further reducing costs.
• More than a quarter of nonprofits are considering joint ventures or mergers with other organizations. Most survey respondents suggested they are exploring and interested in collaboration with other nonprofits, government and communities to keep essential missions being served.

As one survey respondent wrote: “Nonprofits always do more with less and we step up services when it gets even worse. We have more flexibility which is a great asset.”

“There may have been some shell shock at the deep turn downward last fall,” stated Alliance President & CEO Patrick McWhortor. “But nonprofits are know showing the passion for their mission and commitment to communities they have long delivered on behalf of the people of Arizona. And in this hour of great need, thank goodness we have talented and creative leaders at the helm.” More