Tuesday, December 30, 2008

2009 Outlook for Nonprofits

I think most of us have seen how the financial crisis has impacted nonprofit organizations this past year, we just haven't known how bad it is. Well, the Minnesota Council of Nonprofits has done some research to examine how just how bad it really is.

What they found:

  • Over half of the organizations (54.5%) have experienced a decline in total revenue. Forty-seven percent are receiving reduced individual contributions. At the same time, 49.2% have to pay increased expenses.
  • By December 2008, many organizations have made changes in operations, including reducing their budgets (44.7%), putting expansion plans on hold (27.1%) and eliminating staff positions (25.6%).
  • This decreased program service is coming at the same time that 42.4% of organizations report that more people are in need and coming to them for services – yet 49.1% of these have already reduced their staff.

With over half of nonprofits experiencing a decline in revenue, it is especially important to start 2009 on the right foot. Watch out for "3 tips to reduce expenses" later today to help in dealing with this revenue loss, and "4 things nonprofits should do to start 2009 on the right foot" on Wednesday.

Click here to read the Minnesota Council of Nonprofit's full current conditions report, and here for their 2008 nonprofit economy report.