American NFPs Brace for Tough 2010

American Not for Profits expect that 2010 will be financially more difficult or as difficult as 2009 on the heels of the GFC, according to a survey released by the social sector finance company, Nonprofit Finance Fund (NFF).

The survey of more than 1,300 Not for Profit leaders across the US also found strong evidence of the dramatic and creative steps that organisations are taking in order to maintain – and even expand – service delivery to meet increased demand during a time of continued economic uncertainty.

Key findings include:

• Nearly 90% expect 2010 to be as difficult or more difficult than 2009; only 12% expect 2010 to be financially easier for their organisations.
• 80% of NFPs anticipate an increase in demand for services in 2010; 49% expect to be able to fully meet this demand level.
• Only 18% of organisations expect to end 2010 above break-even; 35% of organisations ended 2009 with an operating surplus.
• The majority – 61% – have less than three months of cash available; 12% have none.

President and CEO of NFF, Clara Miller says she expects 2010 to be another treacherous year for many Not for Profits that routinely take heroic measures to meet demand for services.

Miller says the economic 'recovery' has not yet reached people in need, or the organisations that serve them and more must be done to repair the tattered social safety net.

For " lifeline" organisations that provide critical services to people in need:

• 68% expect 2010 to be financially more difficult than 2009 for the people they serve.
• 64% do not expect to be able to keep up with demand for lifeline services in 2010.
• 56% expect 2010 to be financially more difficult than 2009 for their organisations.
• 39% are planning to add or expand programs in 2010; 26% anticipate reducing programs.

The study found that US No for Profits are taking significant steps to ensure service delivery.

In the past 12 months: :

• 52% have collaborated with another organisation to provide programs.
• 43% added or expanded programs.
• 18% expanded geographies served.
• 60% engaged more closely with their board through more reporting and increased communication.
• 39% relied more on volunteers.

To download the report go to www.nonprofitfinancefund.org/details.php?autoID=199