Nonprofit 2010 Fundraising Survey

Posted by on December 19, 2010

Nonprofits show slow gains in fundraising

Some nonprofit organizations have seen a slight turnaround in giving in 2010 that mirrors the slow economic recovery, a new survey from the Nonprofit Research Collaborative has found.  But the small rebound hasn’t been enough to help many nonprofits that are grappling with staff and service cuts even as demand for their services has increased.

In three subsectors— health, social services, and religion—a larger share of the organizations reported declines than reported increases.

The national survey showed that 36 percent of charities reported an increase in donations in the first nine months of 2010, compared with only 23 percent in the same period of 2009.

Thirty-seven percent of charities reported a decrease in giving, a dramatic change from 2009’s 51 percent.

Among those experiencing a decline in giving, the main reason cited was fewer individual donations and smaller amounts. Lower amounts received from foundations and corporations also contributed to the overall lower giving amounts at these charities. Giving remained unchanged at 26 percent of nonprofits in 2010 vs. 25 percent in 2009.

The larger an organization’s annual expenditures, the more likely it reported an increase in charitable receipts in the first nine months of 2010 compared with the same period in 2009.

Among the 20 percent of nonprofits anticipating reduced budgets next year, 66 percent say they will have to reduce programs, services or operating hours, 59 percent expect to cut or freeze staff salaries or benefits, and 49 percent are planning layoffs or hiring freezes.

Demand for services increased at 78 percent of human service nonprofits and 68 percent of charities overall in 2010. Charities will be hard-pressed in 2011 to secure funding for growing needs, especially as individual and foundation donors are cautious about boosting support and other sources of funding—including government contracts for services—are cut.

To download the full report, visit here.

http://www.urban.org/publications/1001467.html