How are nonprofits faring in 2012?
The Nonprofit Finance Fund recently released its annual state of the sector survey results, which answers the question of how nonprofits are faring as the economy continues its slow recovery. For the first time this year, NFF has an online survey analysis tool, which allows us to mine the data by state, budget size and organization type (arts, environment, etc.). More than 4,500 nonprofits completed the survey nationwide, including 127 from Ohio.
Here’s some of what the survey heard this year from nonprofits. Ohio figures are first, with the national numbers in parentheses for comparison.
84% of Ohio nonprofits (85%) saw an increase in the demand for services in 2011;
95% (88%) expect an increase in demand this year;
61% (57%) have 3 months or less cash-on-hand; and
86% (87%) don’t expect their financial outlook to get any better in 2012.
About half of the Ohio respondents rely on government funding, and they reported that more often than not, this funding is delayed anywhere from 30 to more than 90 days. While one-third reported receiving government payments on time, about 60% said their payments were 30 – 90 days late. In the face of late payments, most (71%) use their reserves, while one-third put off paying vendors or use available lines of credit.
These results and others that relate to funder and board engagement can help private funders better understand the challenges nonprofits face.