Wednesday, March 23, 2011

Economic Recession Continues to Hit Nonprofits Hard

Three years after the beginning of the Great Recession, it is common belief that the worst of the crisis is over; tell that to nonprofits.

According to the latest study by the Nonprofit Finance Fund, 87% of nonpofits said that tough economic times still impact the way their organizations are run.  So why, if the economy is getting better, are non-profits still feelig the sting of the recession?  One reason seems to be an increasing demand for their services.  With the high unemployment rate, general poverty, and government cuts (all resulting from the recession), more people are leaning on NPOs to help them then ever before.

St. Barnabas Senior Services, a nonprofit based in Los Angeles, has witnessed a 10% increase in demand for their services in only the past year.  And things don't figure to get any easier; 85% of the organizations surveryed in the NFF study say they believe that demand for nonprofit services will only increase during 2011.  And of these organizations, only 46% believe they will have the ability to meet these demands.

Things are not all gloomy, however; mostly because of the donations made by citizens.  In another study by the Nonprofit Research Collabortive, 63% of NPOs believe contributions to their organizations will increase in 2011.  In a story by the Huffington Post (where much of this information comes from), the president of Bank of America Charitable Foundations urges people to do whatever they can to help nonprofits "keep the lights on."  This can be anything from making a donation to your favorite nonprofit, or volunteering at one.

Want to read more about this story?  Read the full article at the Huffington Post.

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