Nonprofit Finance Fund
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1 Nonprofit Finance Fund 2013 State of the Nonprofit Sector Survey Results Idaho Nonprofit Current Conditions Report Nonprofit Finance Fund s 5 th Annual survey captures the economic reality of the nation s nonprofit organizations through the voices of 5,983 nonprofit leaders. While organizations show slight signs of financial improvement, this is also the 5 th straight year in which they reported dramatic increases in service demand. Meanwhile, funding from government continues to decline and private sources of funding are not rising rapidly enough to meet demand. But Idaho s nonprofits, like those around the country, continue to carry out their missions, innovating to increase efficiency, access new kinds of funding, evaluate impact and work collectively to tackle social problems. Data is based on a nationwide survey of nonprofit leaders conducted by Nonprofit Finance Fund, January-February Idaho nonprofits participated. Idaho Report edited by the Idaho Nonprofit Center. Learn more about the survey at
2 We Cannot Afford to Ignore the New Economic Reality Need continues to rise, and it s harder than ever to keep up Some organizations are seeing slight financial improvement, but the overall situation is still tough Organizations are adapting to the new environment with a mix of creativity, determination and sweat equity I call it the resource reversal : our biggest challenge has been the reduction in funding and other resources available to us and our clients at a time when due to the economy, the needs are greater than before. We are looking at a variety of partnerships and collaborations, outreach and referral, and possible program expansion to respond to the challenges. Human Services NPO, Idaho 1
3 Demand for Services in Idaho Continues to Rise In 2012, Service Demand In 2103, Service Demand Will Decreased 4% Decrease 1% Stayed the same 19% Stay the same 18% Slightly increased 45% Slightly increase 51% Significantly increased 32% Significantly increase 31% Respondents: 167 2
4 And Nonprofits Continue to be Concerned About Meeting Demand Able to Meet 2012 Service Demand No 45% Yes 55% In 2013, Will You Be Able to Meet Demand? Respondents: 168 No 50% Yes 50% 3
5 Nationally, the 5-Year Trend is Discouraging Able to meet demand for services 4
6 Nonprofit Clients, Particularly in Low-Income Communities, Continue to Be Vulnerable Top Needs Identified by NPOs Serving/Located in Low Income Communities Access to healthy foods Access to healthcare Job creation Access to commercial goods & svcs Strong, well-performing schools 3% 22% 22% 40% 66% Idaho nonprofits were 6% more likely to be concerned with job creation than the national results and 15% less likely to identify strong performing schools as a need Affordable housing 47% Access to cultural oppts 6% Other Respondents: 95 5
7 Idaho s Nonprofits Are Doing a Good Job of Managing Cash Flow How much cash (including reserves) is readily available? > 6 months 26% 4-6 months 2-3 months 26% 30% 23% of Idaho nonprofits reported a deficit in 2012, vs. a national average of 29%. 30% had a surplus, vs. 40% nationally 1 month of expenses 13% None 5% Respondents: 168 6
8 Are Making Difficult Personnel Trade-offs Hire staff for new positions Reduce staff Make replacement hires Freeze all replacement hires Retain all existing personnel Give raises Freeze or reduce salaries Improve or increase staff benefits Reduce staff benefits Rely more on volunteers Reduce staff hours Engage more closely with board 5% 4% 5% 7% 5% 6% 6% 8% None of the above 1% 2% Planned next 12 months Respondents: % 11% 10% 13% Last 12 months 27% 28% 26% 24% 27% 30% 31% 29% 33% 36% 46% 7
9 As Well as Other Changes Collaborate with another org to reduce admin exp Merge with another org Change the main ways you raise & spend money Attend conferences or network with others Advocate to govt on behalf of cause Seek funds such as loans or other investments Upgrade tech to improve efficiency Add to reserve funds Use reserve funds None of the above 4% 1% 1% 2% 14% 16% 15% 14% 27% 29% 30% 26% 36% 36% 40% 51% 56% Planned next 12 months Respondents: 168 Last 12 months 8
10 Despite Financial Strain, Idaho s Nonprofits Are Not Shrinking from Challenge Doing More With Less 43% added/expanded programs and 49% plan to do so in % increased the number of people served, and 53% will in % will expand geographies served 15% plan to increase services per client Nationally, it s the same: Our state is in the process of merging the mental health and substance abuse entities which have been separate up until now We are assertively advocating to continue to provide wrap around services and to keep block grant funding for when insurance "drops" or in between applying and receiving State Medicaid. We are openly optimistic about expanding services and are working on the development of a chronic health home for mid CY 2013; [we] have plans to open a primary care clinic and mental health clinic within our substance abuse clinic in the next 1-2 years. -Human Services NPO, MD 9
11 Most Nonprofits Are Challenged to Discuss Operating Needs with Funders My org can have open dialogue with funders about Facility needs 39% Debt burden Working capital needs 2% 27% This is a universal issue: nationally, orgs ranked essentially the same as Idaho nonprofits Cash flow concerns 12% Program expansion 57% Developing financial reserves 30% No dialogue on any of the topics Respondents:
12 Nonprofits are Responding to Funders Call for Measurement, but with Difficulty How often do you collect data on the long-term impact of programs What prevents regular data collection? Not enough staff or time 66% Regularly 52% Don't have right staff expertise 28% Sometimes 31% No resources to hire help to collect data 37% Rarely 9% Don't have necessary technology Our program impact is not easily measured 13% 48% Never 7% No one asks for it 15% Respondents: 148 Other 11% Respondents: 71 11
13 Board Engagement a Mixed Bag My organization's board Makes donations 65% Leverages relationships to directly solicit funds Contributes indirectly to fundraising (intros, referrals, advice) 56% 64% Lends expertise in other ways 77% Makes intros or facilitates partnerships to help org's mission 55% Other 6% 12
14 For Future Success, It s More than Money 50% 40% 30% 10% 0% Strongly agree For My NPO to Thrive and Be Effective in the Next Three Years, We Know what programs will achieve deepest social impact Somewhat agree Somewhat disagree Strongly disagree N/A 40% 35% 30% 25% 15% 10% 5% 0% Have the right mix of financial resources Strongly agree Somewhat agree Somewhat disagree Strongly disagree N/A 60% 50% 40% 30% 10% 0% Have right network & access to external experts Strongly agree Somewhat agree Somewhat disagree Strongly disagree N/A 40% 30% 10% 0% Strongly agree Have right mgnt team & staff Somewhat agree Somewhat disagree Strongly disagree N/A 13
15 We Must Support Nonprofits Efforts to Adapt and Thrive in a New Reality Supporters can: Help nonprofits investing in operations that allow them to better measure impact Facilitate and fund explorations in nonprofit collaboration, and working in collaboration themselves to strategically pool funding Provide specific funding for adaptation & skill building: Explorations of alternative funding sources Scenario and strategic planning to be ready for change Business model planning and implementation of results 14
16 Nonprofit Finance Fund Where Money Meets Mission Learn more at: nonprofitfinancefund.org/survey Interact with the data yourself at: survey.nonprofitfinancefund.org Stay connected: Twitter.com/nff_news Facebook.com/nonprofitfinancefund Kerry Sullivan, Bank of America Charitable Foundation Antony Bugg-Levine, Nonprofit Finance Fund Jennifer Talansky, Nonprofit Finance Fund Anjali Deshmukh, Nonprofit Finance Fund Andrew Schwalm, Nonprofit Finance Fund 15
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