Non-profits expect recession’s impact to be long-term

Times aren’t good for non-profits at a time when many are seeing a growing demand for the services that they provide.  

In a survey of 986 non-profit leaders by Nonprofit Finance Fund, just 16% expect being able to cover their operating expenses in 2009 and 2010. The recession is expected to have long-term or permanent negative financial effect on their organization by 52% of respondents.

When asked to identify actions taken within the past 12 months or planned for the next 12 months to address this financial situation, 39% identified "reduce or eliminate programs,” 41% identified "reduce staff or salaries" and 23% identified "delay payments to vendors."

Many respondents expressed interest in exploring new ways to manage through the crisis and beyond, to continue serving their communities, with 58% saying they would like to conduct scenario planning, 52% wanting help communicating their financial picture to board members and/or funders and 34% interested in program profitability analysis.

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