Only 9% can have an open dialogue with funders
about developing reserves for operating needs

New York – April 7, 2014:  The economic recovery is not offering signs of relief for the nonprofit sector, and many organizations are now looking to new models of funding, according the results of the Nonprofit Finance Fund’s 2014 State of the Nonprofit Sector Survey. Leaders from more than 5,000 nonprofits nationwide participated in this sixth annual survey. Many reported daunting financial situations, and said they are looking at new ways to secure the future of their organizations for the benefit of the people they serve.

The economic recovery is leaving behind many nonprofits and communities in need:

• 80% of respondents reported an increase in demand for services, the 6th straight year of increased demand.
• 56% were unable to meet demand in 2013 – the highest reported in the survey’s history.
• Only 11% expect 2014 to be easier than 2013 for the people they serve.

For many nonprofits, the funding landscape is changing. Of respondents who receive government funding, nearly half have seen support decline over the past five years.

41% of nonprofits named “achieving long-term financial stability” as a top challenge, yet:

• More than half of nonprofits (55%) have 3 months or less cash-on-hand.
• 28% ended their 2013 fiscal year with a deficit.
• Only 9% can have an open dialogue with funders about developing reserves for operating needs, and only 6% about developing reserves for long-term facility needs.

“The closer a system gets to failure, the harder it becomes to devote scarce resources toward building a better future,” said Antony Bugg-Levine, CEO of Nonprofit Finance Fund. “The nonprofit sector’s greatest asset is tenacious, creative, smart leaders who, despite significant challenges and with the right support, have the capacity to lead the United States into a new era of civic and social greatness.”

Full survey results, along with an interactive survey analyzer and a look at trends over the past six years, are available at: www.nff.org/survey.

The survey was supported by the Bank of America Charitable Foundation and the Ford Foundation.