MNA provided a “snapshot” of responses made by the end of 2020 in the impact survey. It’s continuing to take responses for the study in the hopes of collecting a broader pool of responses from the state’s nonprofit sector and getting a sense of the impact the second round of PPP and annual appeals that are closing out will have for nonprofits, Kuhn said.
Over half of the nonprofits responding to the MNA survey said they have six months or less of operating cash on hand, Kuhn said.
That’s alarming, “but it provides opportunities to think about solutions before things get into a panic” with additional cuts or furloughs, programmatic cuts or worst-case scenario, shutting their doors, she said.
Fifty-three percent of nonprofits reporting less than six months of operating cash said their main source of revenue comes from annual fundraisers/events. Another 46 percent count on individual donations as the main source of their funding. Fifty-five percent are experiencing financial distress and most estimate losses this year of 11 percent to 30 percent.
Among other findings, the survey shows that nonprofits are doing more with less. Over half of the nonprofits surveyed have expanded programs and/or launched new programs to meet community needs. At the same time, a quarter of respondents said they had to lay off or furlough employees, most of them program or administrative staff.
“When combined, the responses to the survey tell (nonprofits’) story of resourcefulness and resiliency,” Kuhn said. “They’ve had to adapt and pivot program and service delivery … all while making sure people are safe.”
The way nonprofits are delivering programs and services may change for good, MNA said. Over half of nonprofits responding anticipate keeping a hybrid work culture, even after restrictions are lifted.
MNA is sharing the results of its survey, especially around the number of nonprofits with six months or less of cash reserves on hand, to foster broader thought about solutions that are needed, including donors giving as much as they can and the importance of unrestricted grants to help fund operations, Kuhn said.
“Since the beginning, nonprofits have been providing programs and services that address issues and solve problems as a result of the pandemic,” she said.
“If nonprofits aren’t providing these services, who will?”
