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Introduction Primary Questions:
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How has the economy affected nonprofit organizations and foundations in San Diego? What are nonprofit leaders doing to manage in uncertain times? What are the consequences for the nonprofit sector and for the San Diego community?
Research Methods Survey conducted December 2009 Nonprofits with assets over 100K Nonprofit and Foundation executives in San Diego
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Results from Nonprofit Responses
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Profile of Respondents
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"In the past 12 months, please tell us how you believe that the economy has affected your organization."
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“In the past 12 months, has there been any change in the demand for your organization’s services?”
*Percentages add to 99% due to rounding.
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“Thinking about the same time last year, how have your organization’s revenues changed?” Revenue Change
The majority report increases from 1-30%
36% 64%
The majority report decreases from 1-30% 8
Increase (36%) Decrease (64%)
"How much, if any, in unrestricted operating reserves does your organization currently have set aside?"
*Percentages add to 101% due to rounding.
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“To what extent has income from the following funding sources changed for your organization over the last 12 months?�
% of Organizations Reporting Funding Decreased
% of Organizations Reporting Funding Stayed the Same
% of Organizations Reporting Funding Increased
Individuals Corporations
65 65
22 20
13 15
Foundations
54
28
18
Federal Government
27
46
27
State Government
50
34
16
Local Government
54
30
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Funding Sources
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“To what extent has income from the following funding sources changed for your organization over the last 12 months?�
Funding Sources Fees for Services Investment/Endowment Income Bequests Special Events Earned Income (Related or Unrelated Ventures)
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% of Organizations Reporting Funding Decreased 32 72 26 43
% of Organizations Reporting Funding Stayed the Same 41 22 51 23
% of Organizations Reporting Funding Increased 27 6 23 34
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“In the past 12 months please indicate how, if at all, federal stimulus attempts have affected the ability of your organization to deliver programs or services.â€? ď ˝
40% of respondents received federal funding
*Percentages add to 101% due to rounding.
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“In the past 12 months please indicate how, if at all, the California state budget crisis has affected the ability of your organization to deliver programs or services.”
33% received state funding Impact of California's Economy
36% Negatively Affected (64%)
64%
Not At All Affected (36%) Positively Affected (0%)
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“For your organization, how have the total number of volunteers changed over the past 12 months?”
82% of nonprofits surveyed rely on volunteers to achieve their missions Number of Volunteers 6% Increased (54%)
40%
54%
Stayed the Same (40%) Decreased (6%)
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Approaches Taken
Doing more with less
Actions nonprofits have taken:
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Changes to Programs/Services Administrative Operational Fiscal
“Please describe any changes that have been made to your organization’s programs/services that you believe have occurred as a result of current economic conditions.”
Percent
Changes to Programs/Services 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
47%
27% 20%
Added new
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24%
Expanded existing
Scaled back existing
Eliminated some existing
21%
Made no changes
“In the past 12 months, has your nonprofit taken any of the following ADMINISTRATIVE actions in order to achieve a balanced budget?�
Administrative Actions Salary Freezes
66%
Reduced Amenity Expenses
59%
Dedicated More Staff Time to Fundraising
53%
Hiring Freezes
48%
Collaborated with Another Organization
46%
Layoffs
43%
Reduced Staff Hours
39%
Other
13%
Requested Employees Take Unpaid Time Off
11% 0
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20
30
40
50
*Percentages do not add to 100% across categories because multiple responses were allowed.
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60
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“In the past 12 months, has your organization taken any of the following OPERATIONAL actions in order to achieve a balanced budget?�
Operational Actions Purchased New Technology
36%
Reduced Hours
12%
Merged
4%
Collaborated with Another Organization
40% 0
5
10
15
20
25
Percent *Percentages do not add to 100% across categories because multiple responses were allowed.
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30
35
40
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“In the past 12 months, has your organization taken any of the following FISCAL actions in order to achieve a balanced budget?”
*Percentages do not add to 100% across categories because multiple responses were allowed.
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“We moved $300,000 from investments to a money market account so there was more cash available if needed.”
Results from Foundation Responses
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Foundation FoundationSample: Sample: 28% 28%private privateindependent independent foundations foundations 24% 24%private privatefamily familyfoundations foundations 20% 20%community communityfoundations foundations 28% 28%other other
Geographical Grantmaking
nn==25 25
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Economic Impact
Foundation Sa Smaller Foundations (<$10 million n =assets) 25 in net
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Net Assets
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Net Assets
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Net Assets
Reasons for Asset Declines Loses on Investment/Endowment/ Revenue
26% 74%
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Decreased Donations/Contributions
Operating Budgets
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Program Changes
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Administrative Actions
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Fiscal Actions
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ď ˝How
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will all of this affect grantmaking?
Forecasting Grantmaking Priorities Grantmakers that Support the Following Issue Areas: Animals Philanthropy & Volunteerism Religious/Faith Based Scientific Research Arts, Culture, & Humanities k-12 Education Environment Higher Education Health Human Services Community Improvement/Development Children & Youth 31
% Expecting to DECREASE Funding Levels 33 20 50 100 36 44 67 30 23 14
% Expecting to INCREASE Funding Levels 0 0 0 0 9 11 17 20 23 29
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Forecasting Grantmaking Priorities Grantmakers that Support the Following Issue Areas: Animals Philanthropy & Volunteerism Religious/Faith Based Scientific Research Arts, Culture, & Humanities k-12 Education Environment Higher Education Health Human Services Community Improvement/Development Children & Youth 32
% Expecting to DECREASE Funding Levels 33 20 50 100 36 44 67 30 23 14
% Expecting to INCREASE Funding Levels 0 0 0 0 9 11 17 20 23 29
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Conclusions & Next Steps
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Conclusions & Next Steps
In these challenging times, we are seeing increasing demand, fewer resources
Some successes have been reported
The sector remains in a fragile state
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Reasons for Concern
San Diego nonprofits are stretched almost to the breaking point
A workforce at risk
Shifting funding priorities for San Diego foundations
Looking Forward
Making the move back to strategic thinking
Understand that for some the economic recovery in the nonprofit sector may lag that of the overall economy
We need ways to capture and discuss the lessons learned
The Future ď ˝
Despite these tough times, respondents remain hopeful
ď ˝
62% reported that they are either somewhat or very optimistic about the future
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Thank you!
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