Nonprofits in Northeast Ohio are struggling to balance falling revenues and an increase in demand as they plan for 2010, a new survey released by Business Volunteers Unlimited and the Nonprofit Finance Fund finds.
Based on a survey of one hundred nonprofits, the report (results, 7 pages, PDF) found that organizations in the region expect to see declines in foundation funding (67 percent), government revenues (54 percent), and gifts from individual and corporate donors (40 percent), while experiencing an increase in demand for their services (80 percent). Only 17 percent of respondents expect to do better than break even for the current fiscal year, down from 35 percent a year ago.
Despite the grim outlook, nonprofits indicated they are stretching their resources, financial and human, to meet the needs of their constituents, with more than half saying they have either collaborated with another organization (59 percent), engaged more closely with their board (56 percent), planned to hold conversations with funders to discuss financial realities (55 percent), or developed a "worst-case scenario" contingency budget (51 percent). At the same time, fewer than half the respondents expecting an increase in demand for their services are planning to reduce programs.
The latest findings are markedly different from the results of a similar survey taken in March in which less than half the organizations surveyed planned to collaborate on programs and only 13 percent had or were planning to partner to reduce administrative costs.
"For many nonprofits, 2010 will be even more difficult than 2009 as economic uncertainty continues to buffet the sector and exacerbate long-standing problems," said Nonprofit Finance Fund vice president Dione Alexander. "The actions that Northeast Ohio nonprofits are taking to address systemic issues give hope that they will emerge from these tough times stronger and able to continue to meet the growing needs of the communities they serve."
Source: “Survey: Northeast Ohio Nonprofits Brace for Tough 2010.” Nonprofit Finance Fund Press Release 10/08/09.
This post originally appeared in Philanthropy News Digest (PND).
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