Just 6% Of Nonprofits Expect Increased Revenue

Donors are giving less – if and when they can be reached. The pandemic is simply putting many donors out of reach, according to data from a survey by the Charities Aid Foundation of America (CAF America).

The 72.5 percent of respondents that had a reduction in contributions is a difference of 4.6 percent from CAF America’s first survey in March, when almost 68 percent of organizations reported a decline in donations.

“Compared to our March 2020 survey results, it is clear many charities here in the USA and around the world are in dire need of support,” said CAF American President and CEO Ted Hart. “Support needed to continue day-to-day operations in addition to helping communities that need them the most. The story on how resilient charities can be and how many will survive this pandemic is yet to be written,” he said in a press release announcing the survey results.

Some 880 organizations from 122 countries participated in the recent survey by Alexandria, Va.-based CAF America regarding the impact of the pandemic. In March, 544 organizations participated in the survey.

Almost 95 percent of organizations said they have been negatively impacted by COVID-19, most commonly through reduced contributions or travel disruptions:

  • 72.5 percent, reduced contributions;
  • 70.4 percent, travel disruption, including cancellations and inability to work effectively, including contacting clients, donors and recipients; and,
  • 41.5 percent reported an issue with client relations, leading to the inability to meet expectations of those they serve due to inefficiency or barriers to service, such as cancelled public events or face-to-face operations.

Despite the decline in contributions, 782 organizations (88 percent) indicated that they received some funding in the last month:

  • 65 percent received individual funding;
  • 48 percent received foundation funding;
  • 44 percent received corporate funding;
  • 38 percent indicated that donations were received long-term and 8 percent from new donors.

Similar to the first survey in March, almost all organizations indicated that they expect a decline in contributions during the next 12 months. Half of them expect a decrease of more than 20 percent and 17 percent expect a decline of 16 to 20 percent. Barely 6.5 percent expect an increase in donations.

More than half of the charities (53 percent) that responded to the survey provide direct services to those affected by the pandemic, including frontline relief services, such as healthcare and essential services such as shelter, food and nursing homes.

“To manage amid the impact of the pandemic,” six in 10 nonprofits reduced other operational costs and nearly as many created new fundraising campaigns. Almost 39 percent narrowed their service offerings or programs.