Massachusetts, Arizona Nonprofits Lost Combined $8.65 Billion

COVID-19 losses keep being racked up at nonprofits across the nation. The Massachusetts Nonprofit Network (MNN) released the latest edition of its Commonwealth Insights report series, “The COVID-19 Pandemic: Nonprofit Impacts and Policies to Boost Resiliency,” showing $8.6 billion in losses. In Arizona, the loss is pegged by the state association at $53 million.

“Nonprofits support the most vulnerable, strengthen every community, and generate essential economic activity, which makes the massive impacts of COVID-19 on the sector very troubling,” said Jim Klocke, CEO of MNN. “Because of this, it’s in our collective interest to ensure that the nonprofit sector remains strong during, and after, the COVID-19 pandemic.”

The report, drawing on more than 1,500 responses to surveys of nonprofits conducted by MNN and Philanthropy Massachusetts, underscores the enormity of the impact of the COVID-19 pandemic on the nonprofit sector and outlines policies that will preserve sector jobs and services.

Commonwealth Insights notes that nonprofits across Massachusetts reported a total of at least $8.6 billion in lost revenues due to the pandemic. More than half (52 percent) reported that they had made reductions in their workforce.

The top three specific impacts of the COVID-19 pandemic cited by nonprofit respondents were disruptions of services to clients and communities (88 percent), decreases in revenues (78 percent), and an increased demand for services from clients and communities (44 percent).

While the surveys illustrate sector-wide impacts, the report also notes differences in impacts and responses to the pandemic between different mission areas and regions of Massachusetts.

For example, in terms of revenue loss, artistic/cultural nonprofits and environmental nonprofits reported the highest incidences of revenue loss, with 86 percent of respondents in both categories indicating that they had lost revenue as a result of the pandemic. 

In addition, the data show nonprofits in the Pioneer Valley and Greater Boston regions reported the highest percentages of respondents pursuing philanthropic relief. Nonprofits in Northeast Massachusetts reported the highest percentage of respondents applying for Paycheck Protection Program (PPP) loans, and nonprofits in Central Massachusetts reported the highest percentage of respondents applying for Economic Injury Disaster loans (EIDL).

The report calls for three public policy reforms to boost nonprofit resiliency and help the nonprofit sector recover from the impacts of COVID-19:

Across the country, nonprofits in Arizona are still reeling from the impact of the COVID-19 pandemic, reporting total revenue losses thus far of nearly $53 million, according to a recent survey by the Alliance of Arizona Nonprofits.

In its updated Covid-19 Nonprofit Impact Pulse Survey as of June 11, some 99 percent of 488 respondents have been significantly impacted by the pandemic. Of those, 92.5 percent reported decreased revenue and 75 percent indicate a disruption of services to clients and communities. The organizations responding represent statistics for establishments in the areas of health, human services, animal welfare, youth development, and the arts but do not include colleges or hospitals.

The anticipated loss through the end of the organizations’ respective fiscal years is nearly $270 million. One-quarter of respondents reported laying off or furloughing 2,877 employees as a result of the pandemic. Arizona nonprofits employ more than 170,000 Arizonians or one in 16 paid jobs in Arizona, according to the 2018 report from the L. William Seidman Research Institute, the consulting arm of W. P. Carey School of Business at Arizona State University.

Nearly 60 percent, or 299 organizations, applied for PPP loans totaling more than $63.8 million in relief funding. Of those applying for loans, 60 percent of respondents were approved, 33 percent are waiting for approval and 7 percent were denied funding at the time of the survey.

For more information about the Alliance of Arizona Nonprofits, visit www.arizonanonprofits.org