Thursday, March 10, 2011

Guidestar Releases Study of Budget Reductions

Note: This is a summary of an older story from the Nonprofit Times TV.  To view the whole story, click here.

Nnnprofits often have to run on reduced budgets during economic downturns like the one we are experiencing. But in a recent survey by GuideStar, we discoverwhat follows because of these reductions.  In short, NPOs see downsizing of services and activities,salary freezes, and even hiring freezes..
Despite the fact that very few of the organizations in the study reported a decrease in demand for their services in the first five months of the year, half of the organizations that were surveyed said that they implemented a salary freeze. Other statistics from the survey included the following:
  •  38% had layoffs
  • 30% implemented a hiring freeze
  • 23% reduced employee benefits
  • 21% reduced salaries
  • 16% reduced operating hours
Only 1 in 8 of the nonprofits surveyed said they restructured or merged with another company.  While these budget cuts have very bad consequences for nonprofits across the country, it is unfortunately a necessary evil that must take place when times are tough for the country.  Hopefully, budgets for organizations will be able to return to normal within time.

No comments: