New GuideStar Report: The Effect of The Economy on the Nonprofit Sector

Almost everyone has felt the effects of the less than stellar economic performance in the first half of this year. This is no less true for the majority of nonprofit organizations as seen in GuideStar’s report on The Effect of The Economy on the Nonprofit Sector for the first half of 2010 released last week.

Nonprofit organizations have been particularly affected this year on two fronts. With unemployment rates barely moving and the number of people coming off of jobless benefits rising, folks have increasingly turned to local community organizations to help fill the gap in services that they can no longer afford. Sixty-three percent of surveyed organizations reported an increase in demand for their services between January 1, 2010 and May 31, 2010. At the same time, more than 40% of organizations reported a decrease in donations and other funding streams. The strain on nonprofits has been so high that 17% of organizations had to cut programs and services and 8% said they were in imminent danger of closing.

From flickr user jasoon (Creative Commons)

If you’ve been considering donating to an organization whose work you support, you might want to consider donating now. You can find financial information on the nonprofit of your choice at GuideStar.org.

If you’re worried about the nonprofits in your community but not currently in a position to donate, there are other ways to help. About a third of organizations reported that they have increased their reliance on volunteers as a way to support their programmatic work and not cut services. You can search for a local volunteer opportunity here — and remember, volunteering is a great asset in career development if you find yourself temporarily out of work.

[This blog entry appeared on an older version of Idealist; any broken links are a result of having re-launched our site in Fall 2010.]

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