Not-for-Profit
The not-for-profit space is seeing the widest variations of any group in the study. While 7% report being
forced to shut down entirely, nearly 10% have seen a dramatic increase in revenue, and another 6%
report some increase. The great majority of respondents – 74% - are reporting revenue declines.
At the same time, some organizations are seeing an exponential increase in needs for their services,
especially those organizations dedicated to meeting basic needs like food and shelter as more people
struggle with layoffs, shutdowns, and furloughs. To meet the overwhelming need, agencies are
expanding their service areas and the number of people they serve despite funding concerns.
Fully half of respondents have changed the way they deliver services, with the vast majority switching to
the digital realm for delivering services, providing education, and raising funds. Several were in the
midst of their annual campaigns when the pandemic hit, and are embracing a wide range of creative
digital solutions to meet their fundraising goals. Virtual galas and other experiences, webinars, e-mail
campaigns, and video conferencing top the list of engagement tactics for many organizations.
Changes in the way they deliver services are driving some organizations to re-evaluate their mission
statements and how their organizations may need to evolve. Some are taking the opportunity to make
fundamental changes, including re-defining value propositions, identifying new needs, changing policies,
and streamlining decision-making were all reported by survey respondents.
76% of respondents in this group report securing a PPP loan, and a third (33%) report concern about PPP
loan forgiveness, with a moderate level of concern – averaging 48 on a scale of 1 to 100. The top
concerns for the not-for-profit space include economic recovery time, employee issues, and the financial
stability of customers or vendors, at 56%, 55%, and 44%, respectively.
Other concerns include the ability to effectively deliver services with social distancing guidelines and
Safe at Work requirements, the willingness of clients to return for services, the potential impact of
schools remaining closed, and what might happen in the wake of a second wave of infections.
Revenue forecasts in the second quarter of 2020 are grim compared to the same period in 2019, with
79% predicting a moderate to severe decline. The outlook begins to brighten somewhat in Q3, with 21%
expecting revenue to be on-par with 2019, and 13% expecting growth. In the fourth quarter, the
percentage expecting growth jumps up to 16%, with only 14% expecting significant declines. Still, the
majority expect to see revenue down compared to 2019 – 56% say they expect their revenue numbers
to be down.
The pandemic may have had significant impact on operations, but for many it hasn’t affected morale.
49% say morale is about the same as it was before the pandemic, while 17% say morale is high. The
increased pressures are taking a toll, however, with 20% reporting a decline in morale.
Not-for-Profit industry responses to a question asking how their business had changed included: