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Charities and the Not-for-Profit sector continue to be hit hard by the economic recession, with thousands of small US charities likely to close this year.
In a new study released by the Nonprofit Finance Fund (NFF), an organization that surveyed nearly 2,000 nonprofit organizations, 87 percent report the decline in the U.S. economy continues to impact their operations.
“The nonprofit sector is like the caboose … of the economy, so we often go over the cliff last and then we stay over the cliff even after the economy starts going up the other way,” said Ken Berger, president and chief executive of Charity Navigator, which evaluates the nation’s big charities.
“The teeny-weeny, little local community-based, grass-roots charities are hitting a brick wall.”
While 2010 produced relatively good results, only 52% of charitable organisation met their fundraising goals during the year, which was about the same level as in 2009.
The nonprofit sector is preparing for this to be worse than 2009. They are beginning to call their situation “The New Nonprofit Reality.”
Added pressure is being put on the charitable sector by increased unemployment, poverty, and government budget cuts.
The main issue according to Rebecca Benard, St. Barnabas’ Vice President of Development and Strategic Initiatives in Los Angeles, is the 10% increase in demand for its services.
Key outcomes of the Nonprofit Finance Fund survey include:
- 87% believe the recession isn’t over
- 77% saw an increase in demand for services
- 28% have 1 month or less of cash
- 55% have added or expanded their programmes.
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News category: World.
