Impact of Economy on Nonprofits

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Impact of Economy on Nonprofits Funders in
Oregon and SW Washington June 2009
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Introduction

• Research review includes the following studies
• Giving in Oregon Survey, OCF, February 2009
• Giving and the Economy in the Northwest, Collins
  Group, February 2009
• Nonprofit Fundraising Trends, Retriever, February
  2009
• Impact of Economy on Funders in Oregon and SW
  Washington, GRANTMAKERS, March 2009
• Foundations Respond to Downturn, Council on
  Foundations, May 2009

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Nonprofits Demand for Services

• By the end of 08, nearly half of nonprofits saw
  an increase in demand for services.
• Avg. amount of increase is 16, highest in
  social services and youth development at 27.

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Nonprofits Private Giving

• Half of nonprofits report lower levels of private
  contributions in 2008 compared to 2007.

Several nonprofits indicate that while
individuals are providing, on average, smaller
donations, the total number of donations has
increased. There is evidence that Oregonians
are ready and willing to support nonprofits
during the downturn.
n113
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Nonprofits Giving Levels

• Among NW nonprofits with strong fundraising
  programs, 39 saw lower contributions in Q4, 2008
  compared to same period in 2007.

Ten percent of these organizations have already
merged or aligned with another nonprofit. Anoth
er 7 are considering merging in the next year.
n87
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Funders 09 Funding Level

• Half of funders will be decreasing their funding
  levels compared to 08.
• Just under half say their funding levels will
  remain flat.
• A few will be increasing their funding levels in
  09.

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Funders - Shifts in Funding

• Whether funding levels are decreasing or staying
  flat in 09, funders are not making significant
  shifts in sectors as a result of the downturn.
• Human services up somewhat.
• More typically, funders are sharpening focus on
  our core mission, honing in on core values.
• Focus is also on wanting to fund nonprofits who
  are most effectively delivering services in their
  sector.

• We will be increasing in food, clothing,
  shelter, and medical clinics.
• We are going back to our roots.
• In the past we gave 10 to other. Well, that
  category is going away.
• We have always been committed to the arts and
  will remain so.

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Funders - Value of Assets
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Funders - Color Code
Funder Size
Large gt 100m Medium10-100m Smalllt10m
Funder Type
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Funders 09 Funding Value of Assets
Value of Assets
Flat
Up
Down a lot
09 Funding
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Key Takeaways

• Trends in Oregon and SW Washington are consistent
  with trends across US.
• Funders and nonprofits both are experiencing the
  impact of rising needs and shrinking resources.
  Together, you share this issue.

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Questions?

• Contact Lori Heckmann _at_ loriheckmann_at_comcast.net.