from staff
In the aftermath of the 2007-2009 national recession, the GuideStar research firm reports that there’s finally good news for nonprofits.
“The results of our fall fundraising survey may indicate the beginning of an economic recovery in the nonprofit sector,” reported GuideStar, a charity rating and information firm based in Washington, D.C.
“For the first time in two years, there’s cause for cautious optimism about the sector and the economy,” the report said.
More than 2,300 public charities and 160 private foundations responded to GuideStar’s fall 2010 fundraising survey, conducted with the National Center for Charitable Statistics, the Association of Fundraising Professionals, the Center on Philanthropy at Indiana University, nonprofit software provider Blackbaud and the Foundation Center.
According to GuideStar, respondents were asked to compare their organizations’ total contributions in the first nine months of 2010 to contributions received during the same period in 2009.
Among highlights:
• The proportion of participants reporting decreased contributions dropped from 51 percent in October 2009 to 37 percent in October 2010.
• The percentage who said contributions had increased grew from 23 percent in October 2009 to 36 percent in October 2010.
• For the eighth consecutive year, a majority (68 percent) of participants reported increased demand for their organizations’ services.
“The results are encouraging,” said GuideStar. “These figures may herald the beginning of an economic recovery in the nonprofit sector, although only time will tell if the trend will continue.”
Among other highlights:
• Larger organizations, those with annual expenses of $1 million or greater, were more likely to report increased contributions.
• As has been true in previous years, respondents who reported decreased contributions cited “fewer individuals gave” and “gifts from individuals were smaller” as the primary reasons for the decline.
• Half of the organizations represented in the survey received the bulk of contributions during the last quarter of the year, the period known as the giving season.
Of those, 36 percent predicted that contributions received during the fourth quarter of 2010 will exceed those from the last quarter of 2009; 43 percent expect end-of-year contributions to be about the same as last year; and 22 percent anticipate that end-of-year contributions will be lower.
• Nearly half, at 46 percent, of participants expect their organizations’ budgets to increase next year. Another 20 percent report their budgets will be lower, while 32 percent say it will stay about the same. The remainder didn’t know.
GuideStar reports that 7 percent say they are at risk of closing because of finances.