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United Way study indicates one-third of region's non-profits could close
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The 2009 Non-Profit Pulse Survey results were released this week and it was reported that one-third of the region's non-profits may close operations in the next year due to lack of funding and resources. The annual survey conducted by the United Way of Central and Northeastern Connecticut looks at the fiscal health of the 1,900 non-profits in a 40 town region.
This year, 358 surveys were sent out with 99 surveys returned and used for the data in this report. A third of those responding were human service organizations, about 27% indicated they were youth organizations, 10% education organizations, almost 10% "other" organizations, about 6% indicated they were arts organizations, and less than 5% each indicated they were health or job training organizations.
The vast majority of those surveyed indicated that corporate funding was down 10%, individual giving was down 20% and government and public sector funding has also decreased with potential for even more cuts. Two-thirds indicated that they have been affected by public sector funding cuts, or lack of increases in funding.
These decreases in funding have resulted in a decrease in staffing or a reworking of staff responsibilities for the majority of those reporting. However, 72% of those surveyed have seen and increase in demand for their services. This is not surprising as more and more folks turn to food pantries, soup kitchens, health services and the like due to economic hardship.
This information, while startling, is not entirely unexpected as last year's survey indicated that two-thirds of those surveyed were concerned that funding would soon dry up. Of those surveyed, a quarter do not have "reserve funds" such as endowments. Almost a third expect to tap into reserves--nearly double from 15.1% last year. In addition, over two-third report that reserve funds would cover six months or less of expenses.
As far as federal stimulus dollars, only about a fifth felt that those they serve would see benefits from the stimulus. Over two thirds did not expect to see any funding from stimulus dollars.
While this information is disheartening, the survey results also indicated that 20% more of those reporting felt a "positive attitude"--although 44.8% still indicated that they were pessimistic.
Volunteerism and in-kind support (non-monetary donations) was also up for 42% of respondents.
A full summary of the survey can be found here.
Click here for the Hartford Business Journal article on the survey.
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