COVID-19 and Nonprofits

COVID-19 and Nonprofits

A lot of media attention is being given to the daily COVID-19 infection rates, death totals, etc. And we’re all dealing with social distancing, wearing masks (or not) and other inconvenient aspects of this situation. While some businesses may not survive this episode in our history – it’s also possible many nonprofits that provide essential human services in our communities won’t survive either.

Last month a survey was released by Independent Sector on the impact of COVID-19 on large and mid-size nonprofit organizations. The survey provides clear evidence of a decline in revenue and individual giving that has forced nonprofits to limited needed services and layoff, furlough, or reduce pay and benefits for their employees. A total of 110 organizations responded to the survey and they represent collectively over 152,000 employees and nearly $9.1 billion in contributions and revenue.

A decline in revenues from events or other activities and a reduction in individual giving and grants received was reported by 83% of the organizations. A reduction in services or available operations was reported by 71% of the organizations and 47% reported a decline in employment with a majority either laying off or furloughing employees. It should be no surprise that my own consulting business has also been very hard hit because nonprofits lack the resources now to hire someone like me to help them.

But the more important issue is we all need to dig deep and support our favorite nonprofits now more than ever. For those who’ve been able to keep their jobs, maybe you’ve saved some money by cancelling a trip or two you had planned to make. I know I’ve had to do that. So maybe you could channel some of those funds to a good nonprofit in your area. I always recommend the Salvation Army as a good place to invest. I’ve been on the DFW Metroplex Advisory Board for the Salvation Army for almost 25 years so I know first-hand about the good they do with the funds they raise. I’ve already sent them my check to help them out – now it’s your turn to help the organization of your choice if you haven’t already done so.

COVID-19 has messed up a lot this year but it has also increased the need for human service organizations in our communities. Don’t forget to help the organizations that serve the less fortunate in our communities as we cope with these new challenges.