More than 70 percent of nonprofit organizations saw a decline in income last year, according to a recently released survey by BKD CPAs and Advisors. The study, the “State of the Nonprofit Sector” found that a quarter of respondents reported revenue fell by 26 percent to 50 percent.When sked how they feel about their organization’s current financial position, more than one-quarter (28.2 percent) were somewhat or very concerned,” the study said.
The survey was conducted between September 23 and October 23 and drew 318 responses to the 18 questions. More than two-thirds (67.61 percent) of respondents were 501(c)(3) organizations.
The responses to the COVID-19 pandemic forced dramatic changes in fundraising and surveys. Besides the decline in income, 89 percent altered delivery of programs and services 61 percent experienced a decline in fees for programs and services and 29 percent plan to eliminate current programs/services.
The shutdowns have also made NFP organizations more vulnerable with 60 percent (59.5 percent) of edcation organizations reporting they have cash reserves for one month or less and one-third (33.3 percent) of health groups have less than one month of reserves.
A substantial number of the respondents, 40.7 percent, had revenue of $1 million to $24.9 million. There were 24.8 percent with more than $25 million and small organizations, under $999,999, comprised 34.5 percent.
The three largest sectors represented by participants were Education, 21 percent; Health 20.4 percent; and Human Services, 17.9 percent.
