Economic Impact Data
The downturn in the economy is causing a two-fold effect on nonprofits; at the same time that resources are down significantly, the community's need for services is increasing. Read on for data on the effects of the economic downturn in communities across the country. You can also view our impact stories to learn how this economic crisis is affecting nonprofits of every type.
Decreased resources
Already, the effects of this economic crisis are being felt. According to a new study
from GuideStar, 35% of nonprofits have seen a decrease in giving for the first nine months of 2008 - compared with 19% just a year ago.
Increased demand
As more families find themselves struggling financially, nonprofits have always been a source of assistance. Unemployment, underemployment, and disappearing savings have led more and more people to turn to their local nonprofits for help. According to GuideStar, in 2008, 64% of nonprofits have seen increased demand for their services. Stories of this increased demand are all around us.
2009 New Jersey Non-Profits: Trends and Outlook
The results of the Center for Non-Profits' 2009 Issues and Trends Survey, describing the effects of the economic downturn on New Jersey's non-profit community and non-profits' outlook for the coming year. More
2009 Nonprofit Fundraising Trends Survey and Report
The Nonprofit Association of Oregon collaborated with Kevin Johnson of Retriever Development Counsel to produce this survey
of key local funders and development professionals on the economy's effect on nonprofit development
Economic Outlook 2009
August 2009 – Special Reports No. 8 and 9 Highlight Recent Survey Data on the Impact of the Economic Crisis on the Nonprofit Sector
New survey data reported in the spring and early summer of 2009 sheds light on important collective experiences of nonprofits all around the country:
Financial Crisis Impacts Nonprofits in Michigan
In mid-January, the Michigan Nonprofit Association and the Johnson Center at Grand Valley State University surveyed over 200 nonprofits in Michigan to determine how the recent financial crisis has affected their organizations. The results from this survey revealed that:
- Nearly half (45%) of responding nonprofit organizations raised fewer funds in 2008 year-end fundraising compared to previous years.
- Similarly, 45% of nonprofits receiving government funding have experienced delays in scheduled government payments.
- Of the 44% of organizations that have seen a decrease in cash flow, the majority (57%) have reduced the number of employees in their organization.
Finding a Way
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.
How Late Payments Harm Nonprofit Providers
Recently, CT Nonprofits surveyed approximately 500 members to assess how nonprofits were faring in the midst of the financial crisis. The survey focused on government funding and timely contract payments, including how those contract payments relate to a provider’s cash flow and use of credit lines.
Survey results clearly demonstrate that a problem exists for Connecticut’s nonprofit providers. Late contract payments from state agencies create cash flow problems, which in turn require providers to access funds from lines of credits and budget reserves. Both options ultimately result in increased costs to the provider. All of this compounded by inadequate funding is seriously jeopardizing the services that nonprofits provide to their local communities.
Idaho Nonprofit Current Conditions Report - January 2009
To better understand the impact of the current financial crisis on Idaho's nonprofits, the Idaho Nonprofit Center conducted an online survey of nonprofits in the state during the month of January 2009. This Current Conditions Survey was designed to provide a quick, real-time analysis of nonprofit challenges as we enter 2009. Although not statistically valid, the 270 responses represented nonprofits from every area of the state and a wide variety of missions and budget sizes. Read the full report ![]()
Illinois Economic Outlook 2009
According to Economic Outlook 2009
, a new report from Donors Forum, Illinois' vibrant nonprofit sector is raising concerns about the effect of the economic crisis on charitable giving and demand for services, and in turn, nonprofits and grantmakers are responding in proactive ways to meet current challenges. The report is based on responses from 260 nonprofit organizations and 54 grantmakers in Illinois to a survey conducted in the late fall by Donors Forum.
Impact
Economic Outlook 2009 features responses from organizations directly affected by the economic downturn and mortgage crisis as well as grantmakers that fund them. Key findings include:
- Nonprofits and grantmakers reported that operating revenues (for nonprofits) and assets (for grantmakers) have declined in the last year. Seventy percent of grantmakers reported that lack of asset growth or income was a "very important or moderately important issue within their organization."
- Nonprofits were more likely to mention government funding cuts or delays and declines in corporate giving than to mention declines in foundation and individual giving over the last year.
- Two-thirds of nonprofits surveyed reported an increase in requests for services.
Both grantmakers and nonprofits reported that the sector has not yet felt the full impact of the economic crisis. The report also showed how nonprofits and grantmakers are responding to economic challenges. In many cases, prominent strategies include a heightened emphasis on sustaining and building the capacity of nonprofits.
Louisiana Nonprofit Sector Fiscal Health Survey
The Louisiana Nonprofit Sector Fiscal Health Survey
presents a snapshot of the state of Louisiana's nonprofits during the current economic crisis. As the survey asserts, any understanding of the economyls impact on Louisiana is drastically incomplete without taking into account the health of the nonprofits that act as safety nets for all communities.
The authors of this study, the Louisiana Association of Nonprofit Organizations (LANO) and Capital One, will discuss the survey's findings in a series of outreach meetings in Louisiana communities, using these meetings as a base for collaborative approaches to help nonprofits respond to the economic crisis.
Nonprofit Center Survey Reveals Worsening Economic Situation
In May 2009, The Nonprofit Center at La Salle University’s School of Business, solicited nonprofit organizations in the region, via email and its website, to complete a short online survey regarding the impact of the current economic situation. View a summary of the survey's findings
Nonprofit Current Conditions Report June 2009
A May 2009 survey of the Minnesota Council of Nonprofits' (MCN) members tell a tale of nonprofits bracing for extended impacts from the reduction in revenue they have already seen and expect to continue to see in the coming months and years.
MCN conducted its first nonprofit recession survey in December 2008. This second report is based on survey responses from 571 organizations representing a full range of nonprofit activities, budget sizes and distribution of nonprofits across Minnesota. More
Trends in Government Funding
In April, the Michigan Nonprofit Association and the Johnson Center at Grand Valley State University surveyed over 175 nonprofits in Michigan to assess the trends of government funding in Michigan's nonprofit sector. This survey was conducted to follow up on a January report which revealed that 45% of nonprofits were experiencing delays in scheduled government payments.
In this most recent survey, organizations were asked to identify specifically where the delay in government funding was occurring: 39% reported delays at the Local level, 26% reported delays at the State level, and 16% reported delays at the Federal level. The survey also found that 49% of responding organizations reported raising less financial/in-kind support in 2009 compared to previous years.
Weathering the Storm: Challenges and Opportunities Facing Colorado Nonprofits During Recession
Weathering the Storm: Challenges and Opportunities Facing Colorado Nonprofits During Recession, jointly published by the Colorado Nonprofit Association and the Community Resource Center and sponsored by The Colorado Health Foundation, demonstrates that Colorado's economy has impacted nonprofits all over the state. Read the full report ![]()
