How the Economy has Impacted Non-Profits

A 2010 State of the Nonprofit Sector report showed only 18 percent of the more than 1,300 nonprofit leaders surveyed expect their organizations to end 2010 in the black. While in 2009, 35 percent of organizations ended the year with an operating surplus. 61 percent of those organizations surveyed have less than three months of cash available, and 12 percent have no cash.

80 percent of nonprofits expect to see an increase in demand for their services in 2010, while only 49 percent expect to be able to fully meet that demand. Organizations are taking a number of steps to maintain, and expand — service delivery during this period of economic uncertainty. Collaboration is big now, with 52 percent stating they have collaborated with other organizations to provide programs, 43 percent have added to or expanded their program offerings, 18 percent have expanded the geographic area served by their programs, and 60 percent have become more engaged with their board.

The economic crisis on foundations includes the fact that there is expectation among grant makers that the field of philanthropy will become more strategic as a result of having weathered the economic crisis. In addition, the long-term impact of the crisis on their own foundations are forcing engaging in "being more focused and disciplined in executing our strategy” as well as “more robust strategic planning,” and “more focused use of the foundation’s capabilities.”

This means the field of philanthropy will become more strategic as a result of the world’s economic crisis. There have been declines in overall consumer demand and our country’s highest unemployment figures in a quarter century, so it is no surprise that nonprofit community has suffered as well.

Children of the City in Sunset Park near Brooklyn, New York, is actually growing, according to their Chairman of the Board Rocco Basile, who has been affiliated with the charity for a number of years. In fact he even has a website devoted to nonprofits. Visit http://www.roccobasile.net/

(Source: The Foundation Center.)