Nonprofit Forecast

An excellent forecast from the Fenton Intelligence Report.

An excerpt.

“Nonprofits in the Post-Recession Economy: Prove Your Fiscal Responsibility and be a Credible Source

“While the job market remains weak, there continue to be signs that the nation is crawling out of the economic crisis. The latest government figures show a better-than-expected increase in consumer spending. Yet the nonprofit sector’s recovery is likely to lag.

“As The Chronicle of Philanthropy recently reported, if the current recession mirrors the one in the mid-1970s, donations likely won’t rebound until at least 2012. Most nonprofits are feeling the pinch through flat or declining memberships, dwindling donations, employee layoffs and in having to generally “do more with less.”

“The situation will likely get worse before it gets better. Nearly two-thirds of respondents say that the amount of money they plan to give to nonprofits will stay the same or decrease this year. Of those who plan to decrease their giving, more than half say they will cut charitable donations by 25 percent or more. It is a gloomy outlook given the downward trend in giving from the previous two years.

“Our study shows nonprofits must compete for a smaller pool of donated funds from individuals and that they will be scrutinized like never before to show how donations are used to provide effective programs and services to communities.

“Our research reveals that trust is the single most important component in the relationship between donors and nonprofits. Existing and potential donors must believe that a nonprofit is managing its funds to have the largest impact before they will invest. People want to engage with organizations to see for themselves the good work that is being done.”