Post on 19-Jun-2015
description
Nonprofits & The Economy
2nd Annual Survey 2010Understanding our communitySouth Palm Beach County Perspective
• Tax-exempt, 501 (c )(3) public charity More than 250 funds
• Supported by hundreds of donors
• $100 million in total assets
• Last year awarded nearly $9 million in grants and scholarships
• Cumulative grants of nearly $81 million
Allegany Franciscan Minstries A non-profit Catholic
organization focused on improving the overall health status of individuals
Guided by the tradition and vision of the Franciscan Sisters of Allegany, provides grants to organizations in three regions of Florida
Nationwide Trends in Responding
Typical Cost-cutting Measures Limiting travel Eliminating employer contributions
to health insurance, retirement Eliminating professional
development options Enforced furloughs, job sharing,
reduction from full-time to part-time
Cutting salaries Across-the-board budget cuts
The New-New Thing:Strategic planning became even more essential
Nationwide Trends in Responding
Governance Front & Center Board members becoming activated on issues
of policy & practice The Dreaded 990s Environment of increased public scrutiny and
concern with education and communication Conflict of interest, whistle blower policies,
compensation Exec., audit and investment committees
became more active, emphasis on oversight & fiscal responsibility
Local Perspective: 2nd Annual Nonprofits and the Economy Survey Pulse of the nonprofit community 367 (28) responses representing:
21,704 full-time staff members (611) 5,796 part-time staff members (146) 4,437 Board members (282) 49,911 Volunteers (1,715) Average years operating: 30 (18)
The Respondents
Aging; 3% Arts & Culture; 12%
Community & Economic De-
velopment; 8%
Education; 15%
Environment; 3%
Grantmaking/Funding; 2%
Health & Human Services; 40%
Human & Race Relations; 1%
Religion; 2%
Other; 15%
Figure 1 - Respondents by Program Area
Broward; 12%
Dade; 7%
Martin; 21%
Palm Beach; 38%
St. Lu-cie; 13%
Other; 9%
Figure 2 - Respondents by County(ies) Served
Challenges
Recruiting qualified staff
Attracting new members/clients/participants
Competition with other nonprofits
Strategic planning and evaluation
Recruiting qualified, reliable volunteers
Meeting needs/interests of current members/clients/participants
Marketing our services/programs
Covering employee payroll, benefits and/or insurance costs
Obtaining funding
Recruiting donors
1.6
1.7
1.7
1.8
1.9
2
2.1
2.2
2.7
2.7
Current Challenges
What We Found: Challenges
Similar results as last year & for South Palm Beach County
What We Found: Challenges
Funding for operating expenses emerged as a top priority for organizations in light of increase of demand for service.
75% felt some degree of vulnerability and 2% noted that the organization would cease operations if the economy did not improve soon.
“Our entire population has critical needs, as we serve the working poor. Our population has always been poor. In this economy, our patients are not finding work. Families are experiencing severe difficulties covering their most basic expenses.”
-Boynton Beach
Areas of Highest Need
Majority of the population has been affected in light of the economic downturn.
Many of most vulnerable are newly affected (children, low to mid income families, elderly, jobless, etc.) and people are facing difficulties in many areas (education, unemployment, housing, healthcare, hunger).
“People need jobs. If they don't work they can't pay their bills, are being evicted and facing homelessness. People are emotional and stressed as so many have never been in this situation and in the past were able to provide for their families…”
- Boca Raton
What We Found: Capital Campaigns
54 respondents currently undertaking a capital campaign. Avg. goals: $7 million+ 42% of funds have
been acquired ($87.7 million)
34 respondents are postponing plans to launch a capital campaign.
South Palm Beach One organization Stalled campaign due
to economy
Raised to Date; $87,652,000
Still Needed; $209,763,000
Figure 7 - Capital Campaign Progress
COMBINED GOAL: $297,415,000
$80 Million increase over last year
Collaborate with other nonprofits
Use prior-year cash reserves
Borrow money
Cut nonessential expenses
Delay payment of bills
Delay payment of payroll
Eliminate programs
Increase fundraising activities
Turn away clients
Lay off staff
127
87
35
185
53
13
58
141
40
64
Organizational Actions(based on number of responses)
What We Found: Organizational Actions
What We Found: Organizational Actions
Continuing to cut expenses and increase fundraising activities. South PBC- Equal increase and
decrease in demand for services
New trend: more organizations reported they are collaborating with other nonprofits.
40% of respondents reported experiencing negative cash flow in the past 12 months (a 15% increase over last year’s results) and 30% of those attributed the need to borrow money due to unmet fundraising goals.
“Our strategic planning consultant determined that staff is "red-lined". We cannot afford to hire more staff to relieve our current staff. Our Board has frozen salaries and stopped employer 401K contributions. Staff is overworked and very underpaid.”
-Boynton Beach
Other findings
TOP FOUR AREAS OF INTEREST
• Building endowment (higher rate in South PB County)
• Increasing volunteer opportunities
• Undertaking collaborative fundraising efforts
• Many respondents also expressed an interest in the “greening” of business operation.
LARGEST DECREASE IN FUNDING MIX
• Foundation grants• Individual
contributions• Corporate donations
Significant decrease
Slight decrease
No change
Slight increase
Significant increase
30%
32%
16%
16%
7%
Endowment
What We Found: Endowments Suffered
Suggestions to Funders in addition to Giving
Nonprofits repeatedly noted the need for operational support and assistance in establishing partnerships.
Many also indicated the need for training and advocacy on behalf of the nonprofit sector.
“Facilitate collaborations and mergers among and between nonprofit providers of essential quality of life services.”
-Delray Beach
Positive Impact
Respondents were asked to share some good news in this year’s survey. Respondents praised:▪ The dedication of staff
and volunteers▪ Increased
partnerships▪ Improved business
operations
“The good news is that we have had to approach our programs very methodically to ensure we can develop sustained funding streams. This has led to the development of business systems that streamline processes and allow us to serve more people with less overhead than traditional providers.”
-Boca Raton
Good News
National Outlook
Some states revoking charities’ tax exemptions Public entities looking at taxing nonprofits for
new, public sources of revenue Private/nonprofit partnership as new models Mergers and acquisitions Increased use of technology Some shifts toward eligibility to enable
operational support as a foundation funding priority
Giving is down but donors remain engaged in 2010
The Future Outlook: Local View Leveraging is key to meeting critical needs
Restructuring: Tough choices ahead: consolidate, collaborate, merge or exit
Necessity of increased cost efficiencies
Technology/social media as an enabler
Best guess: Funding is going to continue to be constrained and highly competitive
Your Insights
Your feedback is appreciated! Share your suggestions, comments and insights at www.yourpbc.org/economy
Sign up for Community Foundation E-News on our website to receive announcements on future funding and collaboration/training opportunities.
To learn more:www.yourcommunityfoundation.org/economy and sign up for our e-news list!