Nonprofit woes

The Nonprofit Finance Fund recently issued results from a survey suggesting 2010 could be more financially difficult than 2009.

NFF surveyed 1,300 nonprofit leaders in various U.S. markets. The NFF reports “strong evidence of the dramatic and creative steps that organizations are taking in order to maintain — and even expand — service delivery to meet increased demand during this time of continued economic uncertainty.”

The key finding is that almost 90% of nonprofit leaders expect 2010 to be more difficult or as difficult as 2009 with respect to finances.

"We expect 2010 to be another treacherous year for many nonprofits that routinely take heroic measures to meet demand for services," Clara Miller, president and CEO of NFF, said in a statement. "The economic ‘recovery’ has not yet reached people in need, or the organizations that serve them. We must do more to repair the tattered social safety net."

SURVEY FINDINGS
• 80% of nonprofits anticipate an increase in demand for services in 2010; 49% expect to be able to fully meet this demand level.

• Only 18% of organizations expect to end 2010 above break-even; 35% of organizations ended 2009 with an operating surplus.

• The majority — 61% — have less than three months of cash available; 12% have none.

• 68% expect 2010 to be financially more difficult than 2009 for the people they serve.

• 64% do not expect to be able to keep up with demand for lifeline services in 2010.

• 56% expect 2010 to be financially more difficult than 2009 for their organizations.

• 39% are planning to add or expand programs in 2010; 26% anticipate reducing programs.

• 73% of organizations experienced an increase in service demand in 2008. Then, in 2009, 71% experienced an increase in demand. On top of two years of increased demand, 80% now anticipate increased demand in 2010.

• 40% reported ending fiscal-year 2008 with a surplus; 35% reported ending fiscal-year 2009 with a surplus; only 18% are predicting a surplus in 2010.