Nonprofit Finance Fund (NFF) released the results of its 2014 State of the Nonprofit Sector Survey last week, and the findings are not surprising:

The economic recovery is leaving behind many nonprofits and communities in need:

  • 80% of respondents reported an increase in demand for services, the 6th straight year of increased demand.
  • 56% were unable to meet demand in 2013 - the highest reported in the survey's history.
  • Only 11% expect 2014 to be easier than 2013 for the people they serve.

Nonprofits are working to bring in new money; in the next 12 months:

  • 31% will change the main ways in which they raise and spend money.
  • 26% will pursue an earned income venture.
  • 20% will seek funding other than grants & contracts, such as loans or other investments.

41% of nonprofits named "achieving long-term financial stability" as a top challenge, yet:

  • More than half of nonprofits (55%) have 3 months or less cash-on-hand.
  • 28% ended their 2013 fiscal year with a deficit.
  • Only 9% can have an open dialogue with funders about developing reserves for operating needs, and only 6% about developing reserves for long-term facility needs.

Nonprofits are taking wide-ranging steps to survive and succeed.

In the past 12 months:

  • 49% collaborated with another organization to improve or increase services.
  • 48% invested money or time in professional development.
  • 40% upgraded hardware or software to improve organizational efficiency.
  • 39% conducted long-term strategic or financial planning.

Respondents said that more than 70% of their funders requested impact or program metrics.

  • 77% agreed that the metrics funders ask for are helpful in assessing impact.
  • Only 1% reported that funders always cover the costs of impact measurement; 71% said costs were rarely or never covered.

For the full NFF survey, with an interactive survey analyzer and a look at trends over the past 6 years, go to http://survey.nonprofitfinancefund.org

Donella Wilson
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Donella Wilson

CATEGORIES Nonprofit, , #BeMore,

Donella Wilson, CPA, leads the Firm’s Nonprofit Practice. Donella is a member of the California Society of CPAs and the American Institute of Certified Public Accountants.  She has more than 20 years of public accounting experience providing audit, accounting and special project services and works…Learn More