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

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POST WRITTEN BY

Donella Wilson

CATEGORIES Nonprofit, #BeMore,

Donella Wilson, CPA, leads the Firm’s Nonprofit Practice and has 25 years of public accounting experience providing audit, accounting and special project services and works exclusively in the nonprofit sector. A leader in both the nonprofit and accounting communities, Donella was recognized as a…Learn More