Preserving Through Crisis: The State of Nonprofits

Findings from a new survey conducted by the Center for Effective Philanthropy (CEP) show that U.S. nonprofits faced major challenges but fared better than expected in 2020, thanks to an infusion of philanthropic and government funding. However, the data reveal concerning disparities in the experiences of women leading nonprofits and of nonprofits serving certain communities of color.

Based on a nationally representative survey of nonprofit leaders conducted in February, Persevering through Crisis: The State of Nonprofits sheds light on how the COVID-19 pandemic has impacted nonprofits, how funders have stepped up, and how foundations have been more flexible, responsive, and communicative with grantees—but less so with grantee organizations led by women or serving certain communities of color.

The report’s key findings:

1. Most nonprofit leaders report that the COVID-19 pandemic has had negative impacts on their organizations and has affected their programming, revenue, demand, and costs. Arts and culture organizations have experienced more negative effects from the pandemic, while community and economic development organizations experienced fewer negative effects.
2. Increased financial support from foundations, individual donors, and the government—including Paycheck Protection Program (PPP) funding—helped nonprofits to fare better through 2020 than their leaders had originally anticipated.
3. Many nonprofits report that their foundation funders were flexible, responsive, and communicative in 2020. However, nonprofits led by women and nonprofits serving certain communities (including Asian, Pacific Islander, Middle Eastern, and Native American communities) experienced somewhat less flexibility, responsiveness, and communication than other nonprofits.

Click here to read the full report.

Source: Center for Effective Philanthropy