Community Foundation for the Fox Valley Region

NEWS RELEASE

 

 

FOR IMMEDIATE RELEASE

April 15, 2010

 

For more information, contact:   

Tammy Williams

VP Marketing & Development

(920) 830-1290

twilliams@cffoxvalley.org     

 

Nonprofits haven’t yet turned the corner in dealing with down economy

 

APPLETON, Wis. – A survey of 152 Fox Valley-area charitable organizations conducted by the Community Foundation for the Fox Valley Region suggests that, despite area charities’ efforts to cut costs, the sluggish economy remains a serious challenge for 2010.

 

The Community Foundation’s report Survey of Nonprofits and the Economy 2010 follows up a similar survey conducted in November 2008, which focused attention on the vulnerability of area nonprofits in a poor economy.

 

According to the new survey, conducted by email in February, 70 percent of responding nonprofits are continuing to see increased demand for their services and 42 percent have experienced a reduction in individual and corporate donations – both marginally better than what was reported in the 2008 survey.

 

The survey report is available at www.cffoxvalley.org/SurveyofNonprofits. Viewers can comment on the survey results on an online discussion forum there.

 

Nonprofits survived the bad economy by increasing fundraising activity (65%), cutting non-essential expenses (63%), collaborating with other nonprofits (42%) and drawing on cash reserves (39%). One-fifth of the responding nonprofits operated with a deficit, 18 percent cut staff and 16 percent eliminated programs. Nearly 12 percent had to turn away clients, up from
3 percent in the 2008 survey.

  

“Nonprofit organizations clearly have improved their outlook since the 2008 survey by taking decisive action to deal with the problems created by the economy,” Curt Detjen, president and CEO of the Community Foundation, said. “The concern is whether they have sufficient options left to cope with a prolonged economic recovery.”

 

The news wasn’t all bad. Eleven percent of the responding nonprofits actually added staff and
19 percent added programs. Twelve percent said they were relatively unaffected by the economy.

 

The survey included nonprofits who work in human services, arts and culture, education, the environment, health care, community development and religion. Only the human services sector reported an increase in donations from multiple sources, reflecting a shift in corporate and individual giving to agencies addressing basic human needs as the economy deteriorated.

 

“It’s great that the community has rallied around the neediest of our community,” said Cathy Mutschler, vice president community engagement and lead author of the report, “but it’s the full range of human services, educational opportunities, nature, the arts, museums, community events, health care and faith communities that make the Fox Valley region so great, and they all need their heroes.”

 

Only two respondents agreed with the statement: “We don’t know how we will survive through calendar year 2010.” That’s down from four agreeing with a similar statement in 2008. Still, three-fourths of the respondents said they “have been financially healthy to date but feel vulnerable in the near future.”

 

Environmental groups appeared to be the most vulnerable, with 46 percent (6 of 13) reporting they are experiencing chronic financial problems.

 

Detjen said the survey can be the starting point for a community discussion on supporting vulnerable nonprofits and the need for the wide range of services and opportunities nonprofits provide.

 

“We hope that the story for 2010 is the economic recovery for charitable organizations,” he said. “The Community Foundation will do what it can to help to make that happen, but the survey tells us there is a good deal of uncertainty for nonprofits until we get there.”

 

The mission of the Community Foundation for the Fox Valley Region is to strengthen our community for current and future generations by helping people make a difference in the lives of others. Since its founding in 1986, donors to the Community Foundation have enabled it to award more than $125 million in grants to nonprofit organizations from hundreds of charitable funds under its administration. The Foundation is among the largest certified community foundations in Wisconsin. Affiliated community foundations are located in Chilton, Clintonville, Shawano and Waupaca. Go to www.cffoxvalley.org to learn more or follow us at Twitter.com/CFFoxValley.

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