Wednesday, December 7, 2011

Nonprofits Facing Fiscal Stress

The latest fundraising survey by The Nonprofit Research Collaborative (NRC) was a mixed bag for nonprofits.

The survey, which was released yesterday, showed that 41 percent of organizations reported increased charitable receipts for the first nine months of the year.  On the other hand, there were signs that a significant number of organizations were feeling increased fiscal stress.  Among signs of fiscal stress, the primary concern was flat or declining contributions, cited by 52 percent of organizations, followed by 48 percent each who said low cash reserves and limited number of funders. Nearly as many, 46 percent, said flat or declining non-contribution revenue was a concern.

These problems are of even greater concern to smaller organizations.  While NRC reports that only 8 percent of NPOs fear they are in danger of closing because of financial reasons, that number increases to 20 percent for organizations with less than $3 million in expenditures.

But let's get to some good news, shall we?  Aside from the increased charitable receipts--up from 36 percent last year--half of responding organizations saw an increase of new donors.  This included new corporate funders (37 percent) and foundations grantors (16 percent).  Still, prospects look bleak for 2012.  All organizations expect they will start 2012 with reduced revenue from multiple sources.

What is your reaction to these numbers?  Has your organization experienced any of the fiscal problems mentioned?  Be sure to read the full report on the survey on The NonProfit Times.

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