Nonprofits Face Bleak Future as Revenue Dries Up Amid Coronavirus

Nonprofits Face Bleak Future as Revenue Dries Up Amid Coronavirus

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Most, though, are smaller nonprofits like Gilgal. Ninety-two percent of the nation’s 901,206 nonprofits that filed annual returns with the IRS for 2016 had annual budgets of less than $1 million, according to a 2019 report by the National Council of Nonprofits. Most are community-based and focused on a local need.

Many have been destabilized even though the services they provide are needed now more than ever. “Our survivors and their children are trapped at home,” says Jeehae Fischer, executive director of New York-based Korean American Family Service Center. The agency aids immigrant survivors of domestic violence and child abuse. Calls to its emergency helpline on some days more than quadrupled. Some are calling to say they are hungry. “My heart aches. I know we need to do more,” says Ms. Fischer. But it had to cancel its April fundraiser; recently it has been close to not making its payroll, she says. But “it’s July that I’m really worried about,” she says. She knows the agency’s funding from contracts with the hard-hit New York City and state will be cut.

In Los Angeles, children are in lockdown and can’t get to the Helpline Youth Counseling Center. The agency’s government funding—which makes up about 85% of its operating budget, which was about $6.7 million last year—depends on the amount of counseling it delivers. Director Jeff Farber worries his funding will be cut even though the community’s problems have multiplied. “We know that abuse hasn’t stopped,” he says. “The dealers are still out there.”

As the virus has sapped revenue for nonprofits, it has also been a double whammy in driving up their costs—for masks, cleaning supplies, technology and food—which further restricts how many people they can reach.

Source Name: 
Wall Street Journal
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