There are few aspects of society that the pandemic is not affecting. Accordingly, COVID-19 is having a substantial effect on the operation and sustenance of nonprofits. A June, 2020 article in the Stanford Social Innovation Review, which summarizes a national survey of 750 members of primarily US based nonprofits, reported that nearly 75% of survey respondents stated their organizations had experienced a drop in revenues, and over 80% had moved all or some of their programs and services to an online format. (See “The Continuing Impact of COVID-19 on the Social Sector”) Eighty percent of surveyed nonprofits are shifting to work from home, many are expecting or already have made reductions in staff, and many are considering mergers with other non-profits. (See also the reported effects on 110 nonprofits in “The Impact of COVID-19 on Large and Mid-Sized Nonprofits,” June 15, 2020, Independent Sector which reports that 71% of surveyed large and medium sized nonprofits have reduced services.)
In the Nonprofit Quarterly article, “Nonprofits Struggle to Stay Alive amid COVID-19” one nonprofit CEO says “The impact of COVID-19 on the nonprofit community is unprecedented. It has affected the capacity and sustainability of every nonprofit—from education to the environment, affordable housing to mental health services, animal welfare to the arts—no organization will emerge unscathed.” This article goes on to say that in Arizona, “Fundraising and program cancellations as a result of COVID-19 have cost Arizona nonprofits an estimated $53 million in lost revenue (as of June 11). In that same survey, 25 percent of nonprofits indicated that they’ve had to lay off or furlough employees, and 69 percent report a loss of critical program volunteers.”
Although there are certainly new opportunities for nonprofits to rethink their operations and to create new approaches to fundraising, it is likely that the nonprofit sector will continue to face rather steep challenges in the months and years ahead. In fact, many of the challenges confronting nonprofits began before the onset of the pandemic. The ameliorative goals of many non-profits had already been challenged by the operation of the “normal” economy, which favored the well-positioned and affluent, and created ever greater needs among ever larger swaths of the American population for the many services that nonprofits have delivered.
“COVID-19 Has Pushed Nonprofits to the Limits, Especially Those Led by People of Color,” by Amelia Ahl October 19, 2020
“Nonprofits Struggle to Stay Alive amid COVID-19” by Martin Levine, June 23, 2020, NonProfit Quarterly
“Three Things Nonprofits Should Prioritize in the Wake of COVID-19” by Amy Celep, Megan Coolidge & Lori Bartczak Apr. 30, 2020 Stanford Social Innovation Review.
“The Impact of COVID-19 on Large and Mid-Sized Nonprofits,” June 15, 2020, Independent Sector
“Nonprofits and Coronavirus, COVID-19,” National Council of Nonprofits