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Nonprofit Organizations Struggle Financially During COVID-19 Pandemic
As nonprofit groups are currently unable to hold fundraisers and other events, they are suffering financially during the COVID-19 pandemic. Organizations see a decline in revenue, which could hold them back from offering services that people need.
“Our research has shown that about 80 percent of nonprofits have fewer than three months of cash in the bank,” said Jacob Harold, the executive vice president at Candid. “So if this crisis lasts a whole lot longer, we're sure to lose at least some nonprofit organizations.”
Charity Navigator and Reuters conducted a study on the impact of the coronavirus and the economic shutdown on nonprofits. It found that 74.6 percent of respondents had to cancel a fundraising event. Meanwhile, 83 percent of respondents said they are “suffering financially.”
In addition, the study reported that 64 percent of respondents had to cut back on programs. Meanwhile, 50 percent said they have seen an increase in demand for programs. They say it is “due to the pandemic/economic shutdown.”
The Wall Street Journal reported that before President Trump signed the CARES Act, a group of more than 100 nonprofits asked for $60 billion to be set aside for the sector.
Effort Is Not Enough?
https://twitter.com/JohnBriggs74/status/1254181848630145025
While the relief package did not include anything for nonprofits, some organizations can apply for federal loans.
“We have seen a significant decline in revenue so far, mostly because we had a gala event scheduled for May and that event has now been postponed,” said Linda Tantawi, the CEO of Komen Greater New York City.
The Charity Navigator study shows that 14 percent of respondents said they have laid off staff and 12.5 percent are planning to do so.
On the other hand, Charity Navigator President and CEO Michael Thatcher said GivingTuesday has launched another day of giving.
GivingTuesday is usually after Thanksgiving, but because of the “unprecedented need caused by COVID-19,” May 5 will be GivingTuesdayNow.
“Nonprofit organizations are banding together to run a GivingTuesdayNow to try and stimulate giving and attention to the nonprofit sector so that we can keep doing the essential work that we do,” Thatcher said. “Give generously. Now is the time to stay true to the nonprofits that you have loved and supported over the years. They need your help.”
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