IDAHO NONPROFIT SECTOR IN BRIEF

Transcription

1 IDAHO NONPROFIT SECTOR IN BRIEF 2015

2 Introduction Idaho is home to over 5,500 registered 501c3 nonprofit organizations, more 425,000 volunteers and over 52,000 employees directly employed by a charitable nonprofit. It is critical that policy makers, government and business leaders understand the positive impact the sector has in their community and on the economy. In November 2014, the Idaho Nonprofit Center completed a survey of nonprofit organizations across Idaho. It was done in conjunction with state associations in Alaska, Montana, Oregon and Washington. Covering topics such as financials, governance and management practices, it is designed to indicate the health of the nonprofit sector and identify emerging themes. We thank the MJ Murdock Charitable Trust and Luma Consulting for their role in making the survey and reporting possible. We d like to also recognize the expertise of Gundars Kaupins, PhD. Boise State University for his support to prepare the final report. We encourage you to use this summary report to make your voice stronger. Nonprofits play an important role in creating and sustaining health communities across Idaho and we have an important story to tell. Address Idaho Nonprofit Center 5257 W. Fairview Ave. Suite 260 Boise, ID Phone Idaho Nonprofit The Idaho Nonprofit Center thanks the M.J. Murdock Charitable Trust for their generous support of this report.

3 Idaho Nonprofit center Our mission is to provide resources to build strong and accountable nonprof ts and a platform to rally public involvement and gain support for the nonprofit sector. Our promise is to inspire, connect and advocate for a stronger Idaho. The Idaho Nonprofit Center is the statewide membership organization providing resources to build strong and accountable nonprofits across Idaho. Providing a unique vehicle to inspire, connect and advocate for nonprofit sector with the vision that Idaho s nonprofits are visible and valued as essential contributors to Idaho s communities and economy. We believe the nonprofit sector strengthens the fabric of our communities and exist for public benefit. Nonprofits feed the homeless, provide quality education, deliver needed health care services, protect wildlife, are first responder in emergencies, rescue animals, enrich cultural life, and create innovative solutions to community issues. By representing and supporting charitable nonprofits of all sizes and geographic locations across Idaho, we strive to convene, build capacity, promote best practices and be a thought leader to help nonprofits build a strong and thriving Idaho. BUILD YOUR CAPACITY Idaho Nonprofit Center membership offers access to relevant survey data, training, technical assistance, advocacy, two signature events and much more. We are convener of leaders and allies, and a bridge between the nonprofit, public and private sectors. The information and expertise we gather provides the framework for training and education for organizations of all sizes. Be a part of the conversation at trainings, workshops and convenings to build your capacity. AMPLIFY YOUR VOICE Excellent programs and services alone are not enough to achieve your mission. The Idaho Nonprofit Center provides a strong collective voice for Idaho nonprofits to advance critical policy issues affecting the sector in our state and in Washington DC. IDAHO NONPROFIT SECTOR IN BRIEF i

4 about the survey for this report In November of 2014, the five state associations serving nonprofits in the Northwest collaborated on a joint data collection and analysis effort. Together, these organizations are dedicated to building the capacity of nonprofits in each of their states and across the Northwest. These organizations are: Foraker Group in Alaska Idaho Nonprofit Center Montana Nonprofit Association Nonprofit Association of Oregon Washington Nonprofits A common survey instrument was developed that allows for comparisons across states as a means to get a more holistic view of the health of the sector across the region. The survey collected data focused on organizational health and challenges, including financials, governance and management practices, and public policy attitudes and behaviors. The information is used to better understand the needs and trends impacting the nonprofit sector. This report is designed to showcase the state of Idaho s results through a series of graphs and short descriptions. All ratings are on a 1 to 10 scale unless indicated otherwise. 1,262 Responses The 2014 Northwest Nonprofit Survey was taken by 1,262 individuals and organizations across the five states. GEOGRAPHIC LOCATIONS OF RESPONDENTS Urban 45% Rural 32% Data based in Idaho 23% Other (Work across both rural and urban and/or statewide) 1 IDAHO NONPROFIT SECTOR IN BRIEF

5 TYPE OF RESPONDENT ORGANIZATIONS The top three categories of responding organizations self-identified as human service groups, education and those serving arts and culture. A large minority of organizations identified as other which includes organizations serving missions for advocacy, animal protection, civil rights, foundations, research, science, transportation, etc. Human Services 1% 2% 14% 33% Education Arts & Culture Public/Social Benefit 11% Environment 7% 18% Health Mutual/ship 7% 7% Religious Other RESPONDENTS BY ORGANIZATION BUDGET A total of 79% of respondent organizations reported budgets under $1 million. 60% 62% 50% 40% 30% 20% 17% 10% 8% 3% 10% 0% < 500K $500 - $1M $1M - $2M $2M - $4.9M $5M + IDAHO NONPROFIT SECTOR IN BRIEF 2

6 SO WHAT S CHANGING WITH IDAHO NONPROFITS? There is good news in the incremental improvements reported in the best available data. Reserve levels can often be an early indicator of a nonprofit s ability to weather funding variations and make necessary programmatic adjustments. Best practices suggest that a nonprofit should have from 3-6 months of reserves on hand and Idaho s nonprofits are reporting improvements in the reserves. Months of unrestrictive operating reserve money available 50% 2013 RESERVE LEVEL 52% Even with improvements, 52% of Idaho respondents reported under three month s reserves. 40% 30% 20% 10% % 12% 33% 34% 36% 41% 19% 11% 0% More than 12 months 4 to 12 months 1 to 3 months No reserves nonprofit mission achievement Scale: 1.0 = Not at all 10.0 = A Great Amount Idaho nonprofits reported high confidence in meeting their mission in contrast to a much lower rating on their capacity to achieve it. Investments in internal capacities and the resources are needed to close this missioncapacity achievement gap. My organization is effective at accomplishing our mission. My organization has sufficient capacity to do it IDAHO NONPROFIT SECTOR IN BRIEF

7 So What s different with Idaho nonprofits? INFORMATION CULTURE AND PLANNING Idaho scores were comparable to nonprofits across the Northwest region in most areas pertaining to planning. However, respondents generally reported room for improvement in some areas. MY ORGANIZATION % 80% 86% 60% 40% 54% 27% 29% 44% 20% 9% 0% Annual budget Strategic plan Business plan Operations plan Fundraising plan Communications plan In the last month I read professional literature about the sector The ratings are on a 0 to 10 scale Our organization is very good at using program data to inform plans AK ID MT OR WA Everyone in the organization is aware of the strategically developed plans. AK ID MT OR WA Our organization is very good at using community data to inform plans AK ID MT OR WA AK 5.3 ID 5.1 MT 5.9 OR 5.8 WA IDAHO NONPROFIT SECTOR IN BRIEF 4

8 board governance BOARD ATTENDANCE 69% of Idaho respondents said that attendance at board meetings is above 80%. Percent of board members attending: The practices of nonprofit boards are a good indicator of organizational health. Board attendance rates scored well in the survey. The board contribution rates exposed areas for improvement. BOARD CONTRIBUTION 40% of Idaho respondents said that % of their board members contribute financially, with 30% reporting less than 25% of their board gives to their mission. Less than 60% 60-79% 80-89% % Percent of board members contributing: Less than 25% 51-75% 26-50% % 3% 32% 28% 30% 40% 5% 37% 25% Organizational improvement NEEDED in IDAHO This year s results provide continuing evidence that the responding organizations generally have an planning culture. Large majorities of respondents have written annual budgets, a strategic plan and most review the executive s performance annually. In contrast, few organizations have transition plans or emergency succession plans. 09% Have an emergency succession plan. 17% Have an executive transition plan. 05% Have a staff member as a voting member of the board. 65% Review the executive s performance annually. 5 IDAHO NONPROFIT SECTOR IN BRIEF

9 POLICY AND VOICE OF THE SECTOR The Idaho Nonprofit Center encourages all nonprofits to participate in expressing their voice and to be meaningful participants in the policymaking processes. POLICY WORK IS IMPORTANT Survey results presented in these tables indicate that the majority of organizations agree with this proposition policy work is important. When asked how important policy work is to their mission, Idaho respondents gave relatively high ratings as did respondents from the other four states. In contrast, the Idaho respondents perceive the policy environment more challenging as compared to the other states, with some of the lower scores in having a voice and a role in the process. How important is public policy work to accomplishing your mission? The state/local policy environment is friendly to nonprofits AK ID MT OR WA AK ID MT OR WA Nonprofits have a role in the public policy decision-making process. Nonprofits have a voice in the public policy decision-making process AK 5.4 ID 5.8 MT 6.0 OR 5.6 WA 6.2 AK 5.1 ID 5.7 MT 5.7 OR 5.2 WA The ratings are on a 0 to 10 scale IDAHO NONPROFIT SECTOR IN BRIEF 6

10 THE VALUE OF MEMBERSHIP The survey results show that members of the Idaho Nonprofit Center consistently rank themselves higher in the key categories of organizational effectiveness including, Mission Achievement, Public Policy Involvement. Statewide Voice and Learning Culture. ship helps organizations stay effective, connected and more relevant to the needs of the people they serve and the issues they are working to address. Nonprofits come together to address big issues, because together we are stronger. Survey respondents who are members of the Idaho Nonprofit Center had more favorable responses than nonmembers. PUBLIC POLICY INVOLVEMENT Public policy is important to accomplishing our mission Nonprofits have a role in the public policy decisionmaking process. STATEWIDE VOICE The nonprofit sector s voice is amplified in Idaho There is a strong collective identity of the Idaho nonprofit sector. LEARNING CULTURE Nonprofit organizations come together to address big issues Our organization is very good at using program data for plans Read professional literature about the nonprofit sector s and nonmembers value the Idaho Nonprofit Center. About the Idaho Nonprofit Center The Idaho Nonprofit Center is a statewide member organization that facilitates communication and networking, education, training and advocacy. We act as a vehicle of information, a convener of leaders and allies and a bridge between the nonprofit, public and private sectors. The information and expertise we gather provides the framework for training and education for organizations of all sizes. The ratings are on a 0 to 10 scale 7 IDAHO NONPROFIT SECTOR IN BRIEF

11 PROGRAM EVALUATION Percentage of organizations and their boards that use evaluation data to develop, plan and revise programs. AK MT OR WA IDAHO 85% 73% 86% 78% 81% survey conclusions Overall, the five state nonprofit survey gathers data from a wide cross-section of nonprofits throughout the Northwest. The survey sample includes information from organizations serving different sub-sectors, working in both urban and rural locations, with small and large budgets, and those who are members of the nonprofit state associations and those who are not. This variety and the fact that there are more than 1200 surveys in the sample enhances the credibility of the findings and facilitates deeper comparisons of the responses than was possible in The following themes emerged from our analysis of these results: Policy work: Nonprofits place high importance on policy work, and s of the state associations feel they have a greater voice in the policymaking process. This finding has important implications for the five statewide groups because it suggests that one of their primary strengths is the ability to amplify the voice of nonprofits to advocate for the sector s interests. Average scores for policy-related questions were consistently higher for groups and, to a lesser extent, for organizations with larger budgets. Information Culture and Planning: Rural and Urban Organizations: We expected to find more differences between urban and rural groups in the analysis and were surprised to see that these groups have similar responses to the survey questions. There is an exception concerning the availability of data rural groups have access to when designing their programs. While rural groups reported a gap in data, s of the Idaho Nonprofit Center did rate their access to data for more favorably than nonmembers. Idaho scores were comparable to the five statewide groups in the area of planning. Of the Idaho respondents, 86% have written annual budgets and 54% have a strategic plan. In contrast, very few organizations have a communication plan, succession plan, or an executive transition plan for use during a planned transition or an emergency succession. Given their neutral stance and deep knowledge of the sector, the five statewide organizations involved in this project may be well positioned to help develop, strengthen and lead collaborative solutions to state or regional problems. IDAHO NONPROFIT SECTOR IN BRIEF 8

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