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A Report of CEP's Nonprofit Voice Project
Nonprofits across the United States played a vital role during a period of crisis that began in March 2020 with the COVID-19 pandemic and was followed by a nationwide racial justice reckoning that summer. As nonprofits experienced heightened demand coupled with marked uncertainty about revenues, they responded with resiliency and imagination, while many funders also stepped up, increasing philanthropic giving in a time of urgent need. Following this intense period of trial and turmoil, we wanted to take stock of current nonprofit perspectives and understand their evolving experiences with funders.
How nonprofits are perceiving current challenges.
Nonprofit organizations' recent and projected financial results.
The state of nonprofit relationships with both foundations and individual donors.
How nonprofits are perceiving current challenges.
Nonprofit organizations' recent and projected financial results.
The state of nonprofit relationships with both foundations and individual donors.
How nonprofits are perceiving current challenges.
nonprofit leaders
responded
representing a 57 percent response rate
Finding 1
Many nonprofit leaders report an increase in trust from funders and are experiencing changed practices, such as streamlined applications and reporting, removal of restrictions, and receipt of multiyear funding from foundations. In addition, most nonprofits report an increase in dollar amounts given by at least some individual donors.
of nonprofit leaders who responded to our survey reported experiencing an increase in trust from their funders in the last year.
Percentage of Nonprofit Leaders Experiencing Changes in Foundation Funder Practices
(N = 282)
of respondents reported an increase in the size of monetary contributions received from at least some of their individual donors.
– Nonprofit leader
Finding 2
Issues related to staff—including burnout, filling staff positions, and retaining staff—are the top challenge facing nonprofit leaders.
of nonprofit leaders who responded identified challenges related to staff as one of the biggest challenges their organization is facing.
Staffing Challenges Nonprofit Leaders Are Facing
(N = 133)
of respondents indicated difficulty filling staffing positions in the last year.
– Nonprofit leader
Finding 3
Despite a challenging economic context characterized by high inflation, most nonprofits experienced either a balanced budget or surplus in the most recently completed fiscal year, and the majority anticipate at least breaking even or having a surplus this fiscal year.
Percentage of Leaders Who Identified the Following Contributors to Last Year’s Financial Picture
Percentage of Leaders Who Identified the Following Contributors to This Year’s Financial Picture
– Nonprofit leader
A Nonprofit Voice Project Report
Many nonprofits are experiencing more trust from their funders and changed practices related to funding type as well as processes, indicating that many of the shifts in funder practices that began in 2020 have continued. Even as nonprofit leaders experience these shifts in practice, however, they name their top challenge as a series of interconnected issues related to burnout and hiring and retaining staff. Finally, despite specific worries about the economic context and inflation, the finances of the organizations represented on our panel are generally strong. However, the context in which nonprofits are operating remains uncertain.
In the future, we will continue to explore these and other key issues and challenges facing nonprofit leaders.
If this report has been helpful to you – and you’re interested in hearing more from nonprofit leaders –
please consider making a grant to support CEP’s Nonprofit Voice Project. Reach out to us for more information. Thank you.
Webinar Video
Recorded: Tuesday, July 11th, 2023; 2-3:15pm ET
