Nonprofit Business Trends

Bob Cryer

Bob Cryer

 

 

The Nonprofit Research Collaborative did a study of the health of U.S. nonprofit businesses based on a October 2011 survey of 875 responding nonprofits. Here are the highlights of their findings.

  • 65% of the nonprofits reported an increase in demand for their services.
  • Of those that had government funding in 2011, 54% reported declines in government funding
  • 53% of large nonprofits (over $3M) see rising revenues vs. 17% seeing declining revenues
  • 38% of small nonprofits (under $3M) see rising revenues vs. 31% seeing declining revenues
  • 40% of nonprofits are planning for a budget increase in 2012
  • 49% of nonprofits plan to increase funding for program activities
  • Very few nonprofits plan to increase staffing levels, employee benefits or operating hours
  • 70% plan to hold the line or reduce spending in areas other than their program activities
  • 65% of nonprofits are looking for more volunteers to do program work
  • 54% are looking for more volunteers to do administrative work
  • 44% of nonprofits plan to increase expenditures on major gift cultivation
  • 33% plan to increase expenditures on events and direct mail
  • Smaller nonprofits (under $3M) get fewer gift increases from renewing donors (25% vs. 45%)
  • Smaller nonprofits are more likely to have declines in renewing donors (28% vs. 19%)
  • 20% of the smallest nonprofits (under $250K) are at risk of closure vs. 5% of those above $250K

The report concludes by saying that while the economy is recovering, the nonprofit sector has not yet seen an improvement in fundraising results. What improvements are occurring seems to benefit the larger nonprofits.

You can read the entire report at http://www.guidestar.org/ViewCmsFile.aspx?ContentID=4050

 Author:  Bob Cryer,  Executive Coaches of Orange County, www.ECofOC.org

2 thoughts on “Nonprofit Business Trends

  1. Thanks for the figures Bob. There are some parallels to the business sector in increasing spending on services delivered as revenues increase and holding back on employee coat increases.

  2. Thanks for the figures Bob. There are some parallels to the business sector in increasing spending on services delivered as revenues increase and holding back on employee coat increases.

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