Responses illuminate both the challenges and tenacity of local nonprofits

WEST PALM BEACH, Fla. (May 18, 2010) – A survey of local nonprofit organizations finds that many are struggling to keep their organizations running at full capacity at a time when needs have increased dramatically. But tough times have also sparked ingenuity in the sector, with organizations reporting they are collaborating more with other nonprofits and building endowments needed to weather future storms. 

The survey results were released today by the Community Foundation for Palm Beach and Martin Counties and Allegany Franciscan Ministries. A total of 367 responses were received representing nearly 22,000 staff members and 50,000 volunteers. Respondents were asked about their current challenges, the impact the economic downturn has had on the services they offer and their most pressing funding needs.

Nonprofits cited obtaining funding, recruiting donors and covering employee payroll and benefits costs among their top challenges. Nearly 100% of the responses cited the need for funding, with 75% reporting some degree of vulnerability and 2% indicating that the organization would cease operations if the economy did not improve soon. However, the number of organizations reporting financial health increased 12% over last year.

“The erosion of public and private funding is restructuring the nonprofit sector and many of the social services agencies that have been our first responders in times of urgent need,” said Leslie Lilly, President and CEO of the Community Foundation for Palm Beach and Martin Counties. “At the same time, they are being asked to help more people than ever before.”

Agencies also reported that a broad population has been adversely affected in light of the economic downturn. They expressed many of society’s most vulnerable children, low income families, homeless, the elderly, etc. are facing especially difficult challenges in many areas (education, unemployment, housing, healthcare, hunger). Forty percent of nonprofits reporting said they were experiencing negative cash flow in the past 12 months (a 15% increase over last year’s results) and 30% of those attributed the need to borrow money due to unmet fundraising goals.

This is the second year that Allegany Franciscan Ministries and the Community Foundation have partnered to take the economic pulse of the nonprofit sector in our region. The responses have helped the Foundations and other funders take action. Last year’s survey results helped spark the Safety Net Challenge, an unprecedented collaboration of major funders that jointly raised $1.3 million for agencies providing emergency food, shelter, healthcare and childcare service. The Community Foundation sponsored several “Meet the Funders” and “Networking for Nonprofits” sessions this year in response to help nonprofits identify  funding opportunities and promote collaboration. In addition to participating in some of these activities, Allegany Franciscan Ministries focused its grantmaking on supporting the general operating needs of its grantees.

In response to economic challenges organizations are continuing to cut expenses and increase fundraising activities. A new trend to emerge this year is that more organizations reported they are collaborating with other nonprofits.

Nonprofits demonstrated strong interest in building endowment, increasing volunteer opportunities, and undertaking collaborative fundraising efforts. Many respondents also expressed an interest in the greening of business operations.

“It was encouraging to see that although nonprofits continue to face challenges, they are also seeking ways to improve their services and pull together to meet the needs of our neighbors,” said Eric Kelly, Regional Vice President of Allegany Franciscan Ministries. “We all can learn from their experience and example.”

The survey report is available on the Community Foundation’s website at www.yourcommunityfoundation.org/economy and will be discussed this week on YourPBC.org, Palm Beach County’s Digital Public Square.

The Community Foundation and Allegany Franciscan Ministries will also offer an online webinar discussing the survey results and three community sessions with hyper-local results:

2nd Annual Nonprofits and the Economy Survey Results – Informational Sessions

General Results (Webinar): June 10
Community Information Sessions (Local Results)
• North Palm Beach/Martin Results (To be held in Hobe Sound): June 18
• Central/Western Palm Beach County Results (To be held in Wellington): June  14
• South Palm Beach County Results (To be held in Boca Raton) June 28

For more information and to sign up for any of these sessions, please visit www.yourcommunityfoundation.org/economy. If you have any questions call the Community Foundation at (561) 659-6800.

About Allegany Franciscan Ministries, Inc.
Allegany Franciscan Ministries, Inc. is a non-profit Catholic organization focused on improving the overall health status of individuals through increasing access to health services and information. Allegany Franciscan Ministries strives to be a catalyst for systemic change, committing resources and working collaboratively to promote physical, mental, spiritual, societal and cultural health and well-being. For more information, please visit http://www.afmfl.org/.

About the Community Foundation for Palm Beach and Martin Counties
The mission of the Community Foundation is to: enhance the quality of life for all residents, now and for future generations; build permanent endowments; address needs through grantmaking and provide community leadership. Since 1972, the Community Foundation has awarded more than $81 million in grants to nonprofit organizations and over $5.6 million in scholarships to nearly 1,400 students. For more information, contact the Community Foundation at (561) 659-6800 or visit www.yourcommunityfoundation.org.