Survey indicates nonprofits have lost billions due to COVID

Posted by Pennsylvania Association of Nonprofit Organizations on November 3, 2020

[posted via the United Way of Greater Philadelphia and Southern New Jersey]

The Pennsylvania Association of Nonprofit Organizations partnered with The Pittsburgh Foundation and a coalition of southwestern Pennsylvania nonprofits to survey nonprofits all across the state, which resulted in The Impacts of COVID-19 on Pennsylvania Nonprofits Study.

In the report, 808 nonprofits reported losses of $612 million and new operating expenses of $95.3 million, for a total of $708 million. This sample represents only 2% of the state’s total – the actual economic toll to all nonprofits is increasing to billions of dollars. Regional and county-specific data is available for review online. Please look for data specific to your county or region, as it will help you in your own fundraising and advocacy efforts.

survey earlier this year by United Way of Pennsylvania found that 77% of Pennsylvania households have savings to cover one month or less of household expenses. Many will turn to the Commonwealth’s nonprofit safety net for assistance.

Small nonprofits faced the most significant impacts. Nonprofits with budgets under $100,000 reported average revenue losses and increased expenses of -47%, nearly half their budgets, as compared to -26% for mid-size nonprofits with budgets from $501,000 to $2.5 million. By comparison, the largest nonprofits, those with budgets over $10 million, reported average losses and increased expenses of -7%, still significant but much more manageable in achieving recovery.

The survey supports a broader statewide coalition effort to have legislators pass bills that will dedicate a portion of the state’s allotment of $1.3 billion in CARES Act funding to the nonprofit sector:

Previously, the nonprofit sector has had to compete with for-profit business for funding through federal CARES Act programs. The report found that at least $35 million in operating costs reported are not eligible for CARES Act funding.

Other key data reports include:

  • 9 out of 10 nonprofits reported some negative employment impacts.
  • Nonprofits estimate that 25% of the employees will experience layoffs or pay reductions by the end of the year.
  • 23% report increased demand for services.
  • 36% report more clients.
  • 37% report reduced or suspended services.
  • 48% report fewer clients.
  • 45% report event cancelations or delays.

Please click here for a copy of the 10/15/2020 Press Release.

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