nonprofit current conditions june 2010

8
In the first six months of 2010, many news sources have begun to speculate that the United States economy is starting to recover from the current recession. According to the Minnesota Department of Employment and Economic Development (DEED), the seasonally adjusted unemployment rate in Minnesota has been gradually improving this year dropping from 7.3 percent unem- ployment in January to 6.8 percent unemployment in June. DEED has also reported an increase of 11,000 jobs in the state for the past 12 months and an increase in the length of the average work week from 32.7 hours to 33.1 hours. Each of these employment statistics show that Minnesota is not out of its current recession, but there are positive signs that the recession has hits its peak and is beginning to turn around. According to the results of this survey, the nonprofit sector is showing the beginnings of an economic turnaround. In the past six months, the number of nonprofits who have experienced an increase in demand for services and an increase in expenses due to the current economy has stayed stable. In June 2010, sixty percent of nonprof- its reported an increase in demand for services due to the current economy, the same as December 2009. Three types of organizations were most likely to report an increase in demand for services: mental health and crisis intervention (86 percent), food and/or housing related (76 percent) and employment and jobs related (75 per- cent). Sixty-eight percent of nonprofits in Greater Minnesota reported increased demand for services signif- icantly higher than the Twin Cities, where only fifty-seven percent reported an increased demand for services. July 2010 Nonprofit Current Conditions Report Analysis of a Minnesota Council of Nonprofits member survey by Steve Jenkins, information and database specialist and Jon Pratt, executive director This is the fourth recession related assessment of Minnesota’s nonprofit economy since 2008. This Current Conditions Survey was conducted to provide a quick, real-time analysis of the challenges non- profits were experiencing in the first six months of 2010. 447 organizations completed the survey that collected data on topics ranging from cash flow problems to staffing challenges. Minnesota’s nonprofit economy is starting to stabilize Page 1 30% 40% 50% 60% 70% Nonprofits increase in need and decline of revenues levels off 0% 10% 20% Increase in demand for services Decline in total volunteers Decline in total revenue Decline in revenue from ind gifts Decline in revenue from foundations or corporate giving None Dec 08 May 09 Dec 09 Jul 10 Minnesota is not out of its current recession, but there are positive signs that the recession has hits its peak and is beginning to turn around. According to the results of this survey, the nonprofit sector is showing the beginnings of an economic turnaround. The severity of nonprofit revenue problems lessened in the first half of 2010, with 53 percent of nonprofits reported a decline in total revenues due to the current economy, which is eight percent lower than December 2009 and the lowest this survey has ever reported.

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Page 1: Nonprofit current conditions june 2010

In the first six months of 2010, many news sources havebegun to speculate that the United States economy isstarting to recover from the current recession. Accordingto the Minnesota Department of Employment andEconomic Development (DEED), the seasonally adjustedunemployment rate in Minnesota has been graduallyimproving this year dropping from 7.3 percent unem-ployment in January to 6.8 percent unemployment inJune.

DEED has also reported an increase of 11,000 jobs inthe state for the past 12 months and an increase in thelength of the average work week from 32.7 hours to33.1 hours. Each of these employment statistics showthat Minnesota is not out of its current recession, butthere are positive signs that the recession has hits itspeak and is beginning to turn around. According to theresults of this survey, the nonprofit sector is showing thebeginnings of an economic turnaround.

In the past six months, the number of nonprofits whohave experienced an increase in demand for servicesand an increase in expenses due to the current economyhas stayed stable. In June 2010, sixty percent of nonprof-its reported an increase in demand for services due tothe current economy, the same as December 2009.

Three types of organizations were most likely to report anincrease in demand for services: mental health and crisisintervention (86 percent), food and/or housing related(76 percent) and employment and jobs related (75 per-cent). Sixty-eight percent of nonprofits in GreaterMinnesota reported increased demand for services signif-icantly higher than the Twin Cities, where only fifty-sevenpercent reported an increased demand for services.

July 2010

Nonprofit Current Conditions ReportAnalysis of a Minnesota Council of Nonprofits member survey

by Steve Jenkins, information and database specialist and Jon Pratt, executive director

This is the fourth recession related assessment of Minnesota’s nonprofit economy since 2008. ThisCurrent Conditions Survey was conducted to provide a quick, real-time analysis of the challenges non-profits were experiencing in the first six months of 2010. 447 organizations completed the survey thatcollected data on topics ranging from cash flow problems to staffing challenges.

Minnesota’s nonprofit economy is starting to stabilize

Page 1

30%

40%

50%

60%

70%

Nonprofits increase in needand decline of revenues levels off

0%

10%

20%

Increase indemand forservices

Decline in totalvolunteers

Decline in totalrevenue

Decline inrevenue from

ind gifts

Decline inrevenue fromfoundations orcorporate giving

None

Dec 08 May 09 Dec 09 Jul 10

Minnesota is not out of its current recession, but thereare positive signs that the recession has hits its peak

and is beginning to turn around. According to theresults of this survey, the nonprofit sector is showing

the beginnings of an economic turnaround.

The severity of nonprofit revenue problems lessened inthe first half of 2010, with 53 percent of nonprofitsreported a decline in total revenues due to the currenteconomy, which is eight percent lower than December2009 and the lowest this survey has ever reported.

Page 2: Nonprofit current conditions june 2010

Reduction in revenue was the defining effect of the recessionfor nonprofits. The severity of nonprofit revenue problems less-ened in the first half of 2010, with 53 percent of nonprofitsreported a decline in total revenues due to the current econo-my, which is eight percent lower than December 2009 and thelowest this survey has ever reported.

The two activity areas that are doing particularly well are foodand/or housing (42 percent) and arts, culture and humanities(43 percent). The types of organizations most frequently report-ing decline in total revenue are legal, civil rights, advocacyand/or crime (63 percent) and community building, volun-teerism and/or philanthropy (62 percent).

When looking at particular revenue streams, nonprofits report-ed less of decline in revenue from individual gifts and fromfoundations. Forty percent of nonprofits reported a decline inrevenue from individual gifts due to the current economy, which

is down seven percentage points from December 2009.

Human Services (35 percent), community building (38 per-cent), and education (39 percent) were the types of nonprofitsthat were least likely to report a decline in revenue from indi-vidual gifts, while legal, civil rights, advocacy and/or crimenonprofits were the most likely to report a decline in individualgifts at sixty-three percent.

Fifty-five percent of nonprofits reported a decline in revenuefrom foundations, which is five percent less than December2009. Some types of organizations that most frequently report-ed declining foundation support were community building (62percent), mental health (62 percent) and employment related(60 percent), while education related nonprofits were the leastlikely to report a decline in revenue from foundations (42 per-cent).

While the sector as awhole seems to bepicking up,Minnesota nonprofitswith budgets lessthan $400,000 peryear are still experi-encing significantchallenges. Sixty-onepercent of small non-profits have experi-enced a decline intotal revenue due tothe economy muchhigher than verylarge organizationswith budgets greater than $10 million (35 percent).

The revenue problems of small nonprofits can be partiallyattributed to a reduction in revenue from individual contribu-tions, their most common primary source of income. Forty-seven percent of small nonprofits reported a decrease in rev-enue from individual contributions since the beginning of yearcompared to thirty-eight percent for larger nonprofits. Cashflow was a problem that affected small nonprofits more thanlarger organizations. Forty percent of small nonprofits havereported cash flow as a problem in the first half of 2010, whileonly twenty-seven percent of larger organizations reported hav-ing cash flow problems.

While trying to copewith this situation,small nonprofits haveexperienced a declinein volunteers and adecline in their oper-ating reserve. Smallnonprofits are com-monly dependentupon volunteers tofundraise, providedirect services, and avariety of other tasks,which makes thetwenty-two percentdecline in volunteers

compared to nine percent for larger organizations even moredistressing. In tough financial times, nonprofits may have to usetheir operating reserve to compensate for declining revenues.

Small organizations are least likely to have operating reservesor a line of credit. Eleven percent of small nonprofits report thatthey have used up their operating reserve in the last two years,leaving thirty-six percent of small nonprofits without an operat-ing reserve. Only 19 percent of small nonprofits report havingaccess to a line of credit.

Page 2

Revenue reductions have stabalized

Economic challenges still greatest for smallest organizations

Dec 09 Jun 10 Dec 09 Jun 10 Dec 10 Jun 10Small organizations 63% 61% 53% 44% 16% 22%Medium organizations 62% 52% 44% 41% 7% 9%Large organizations 60% 50% 38% 32% 5% 5%Very large organizations 56% 35% 52% 40% 6% 8%

Dec 10 Jun 10 Dec 09 Jun 10 Dec 09 Jun 10Small organizations 39% 40% 62% 64% 14% 19%Medium organizations 36% 24% 73% 80% 37% 37%Large organizations 25% 21% 74% 85% 59% 51%Very large organizations 23% 18% 69% 83% 55% 60%

Smaller organizations struggle the most with fewer resources available

Decline in total revenueDecline in individual

contributions

Have reserves availableto use

Have a line of creditavailable to use

Decline involunteers

Experienced cash flowtroubles

Page 3: Nonprofit current conditions june 2010

Nonprofits have started hiring, but some still laying offIn a recession, staffing isone of the key indicatorsused to determine how anonprofit is changing.

Since December 2009,twenty-three percent ofnonprofits have eliminatedstaff positions. The typesof organizations that mostfrequently reported elimi-nating staff were employ-ment related (40 percent),human services (35 per-cent) and legal related(33 percent). This con-trasts with only five per-cent of food and/or hous-ing and seven percent ofeducation related organizations reporting reduced staff.

Nonprofits in the Twin Cities (25 percent) were more likely toeliminate staff positions than nonprofits in Greater Minnesota(18 percent). Forty-one percent of nonprofits reported havingadopted a hiring freeze, 5 percent instituted voluntary fur-loughs, 3 percent instituted involuntary furloughs, 8 percent cutstaff salaries and 13 percent cut staff benefits.

While many nonprofits have used staff reduction as a way toweather the recession, other organizations have been hiringand even more are planning on hiring by the end of the year.Eighteen percent of nonprofits have hired additional staff sinceDecember 2009.

The types of organizations that most frequently reported adding

new staff were mental health(29 percent) and healthand/or disease related (26percent). Not countingreplacements, twenty-two per-cent of nonprofits anticipatehiring staff by the end of2010. Health and/or diseaserelated (35 percent) and edu-cation related (29 percent)nonprofits most frequentlyreported that they anticipatehiring new staff, while only 4percent of legal related non-profit anticipate hiring staff bythe end of 2010.

Twenty-six percent of nonprof-its in the Twin Cities anticipate

hiring new staff by year end, which is twice as much asGreater Minnesota at 13 percent.

Larger nonprofits reported they anticipate hiring staff by theend of 2010 more often than smaller nonprofits. Forty percentof very large nonprofits (budget size over $10 million) and 34percent of large nonprofits (budget size between $2 -10 mil-lion) anticipate hiring staff. In contrast, only 14 percent of smallnonprofits (budget size under $400,000) and 17 percent ofmedium size nonprofits (budget size between $400,000 and$1,999,999) anticipate hiring new staff.

Of the nonprofits that anticipate hiring new staff by year end,the average number of anticipated new full-time employees peremployer was 3.6 and the median was 2 full-time employeesper employer.

“Part of our success at weathering the recession is the result of freezing compensation. This strategy works, butis not sustainable over the long haul.”

-a medium-sized arts organization in Greater Minnesota

“We are surprised that we have had a turn-around after a very difficult 2009. We responded very early to thethreats of the economy in 2008 and began a first round of lay-offs, and then made a smaller second round oflay-offs in 2009. We are now looking at restoring those staff positions as our admissions and contributedincome rebound.”

-a large arts organization in the Twin Cities

30%

Nonprofits are starting to hire again

25%

20%

15%

10%

5%

0%

Eliminated Staff Positions Hired in first six months of 2010 Will hire in final six months of2010

Page 3

Page 4: Nonprofit current conditions june 2010

“Our individual contributions are not down as a whole number, but we are working much harder to identifynew donors. Our returning donors and new donors are all giving at a lower amounts and we are spendingmore time and resources on fundraising and less on our programs.”

-a small education related nonprofit in the Twin Cities

Revenue streams show mixed anticipated results

Page 4

Ideally organizations hope for reliability in their revenuestreams, but uncertainty about the near future makes planningand budgeting grueling. As nonprofits project what percentageof their annual revenue goal they will meet, 11 percent reportthat they expect to exceed their revenue goal, 46 percentexpect to reach between 91-100 percent of their goal, 18 per-

cent expect to fall between 81-90 percent and 18 percentexpect to fall below 80 percent of their annual revenue goal.While each nonprofit has its own unique situation, some inter-esting trends can be seen when looking at each type of rev-enue stream.

Individual contributions

Activity AreaIndividualContributions

EarnedIncome

GovernmentFunding

PrivateFoundationGrants Other

Arts, Culture and Humanities 21% 30% 15% 25% 9%Community Building, Volunteerism and Philanthropy 21% 10% 31% 24% 14%Education related 17% 29% 17% 24% 12%Employment and/or job related 5% 25% 65% 5% 0%Environment and/or animal related 42% 0% 11% 37% 11%Food and/or housing related 32% 21% 29% 18% 0%Health and/or disease related 21% 30% 28% 9% 12%Human services and/or youth development 12% 12% 48% 23% 4%Legal, civil rights, advocacy and/or crime 11% 0% 63% 19% 7%Mental health and crisis intervention 5% 52% 29% 0% 14%LocationGreater Minnesota 24% 13% 44% 11% 7%Twin Cities 16% 23% 30% 23% 8%SizeSmall organizations 27% 13% 26% 27% 8%Medium organizations 18% 21% 28% 24% 9%Large organizations 8% 26% 48% 12% 7%Very large organizations 15% 28% 50% 3% 5%

Nonprofits Largest Revenue SourceOrganizations report their year endexpectations of revenue streams

40%

45%

30%

35%

20%

25%

10%

15%

0%

5%

0%

Excellent Good Fair Poor

Earned Income Individual Contributions Corportate and foundation grants

Individual contributions are the primary source of revenue for18 percent of nonprofits in Minnesota. Environmental (42 per-cent) and food and/or housing (32 percent) organizationswere the types of organizations that most frequently reportedindividual contributions as their primary source of revenue.

In the past six months, the majority of nonprofits reported indi-vidual contributions have decreased (43 percent) or stayed thesame (33 percent) compared to the first six months of 2009.Environmental nonprofits were very polarized in their experi-ences with individual contributions, because they had the high-est number of nonprofits reporting an increase (31 percent)and one of the highest numbers reporting a decrease (50 per-cent).

Some other types of organizations that most frequently reportedan increase in individual contributions were food and/or hous-ing (29 percent) and arts organizations (27 percent). Legalrelated nonprofits (59 percent) and education related (48 per-cent) were some other types of organizations that frequentlyreported a decrease in individual contributions. While individ-ual contributions are decreasing, they are not dropping dra-matically. Fifty-two percent of nonprofits expect to reach over90 percent of their annual individual contributions.

One type of individual donation that is the subject of ongoinglegislation is charitable rollover contributions from IndividualRetirement Accounts. The provision allows individuals aged70½ and older to donate up to $100,000 from theirIndividual Retirement Accounts (IRAs) to public charities withouthaving to count the distributions as taxable income, yet due tothe revenue loss to the Treasury this provision has to be extend-ed each year by Congress.

Only four percent of Minnesota nonprofits report receiving anyIRA rollover contributions, with the most likely recipients beinglarge organizations (seven percent report receiving IRArollovers) and both $10 million and above organizations andarts organizations (eight percent report receiving rollovers).The total amount received by these organizations was$91,000 – with a median of $5,000 per organization – a tinyfraction of their total revenues.

Page 5: Nonprofit current conditions june 2010

Earned Income

Page 5

Foundation support

Twenty percent of nonprofits reported earned income as theirprimary source of income. Mental health (52 percent), healthand/or disease related (30 percent) and arts organizationsmost frequently reported earned income as their primarysource of revenue.

Earned income has been the most stable revenue source in thepast six months. Thirty-four percent of nonprofits reported anincrease in earned income in the past six months compared tothe first half of 2009, while 33 percent reported earnedincome has stayed the same and 33 percent reported adecrease.

Mental health (54 percent) and food and/or housing (48 per-cent) organizations most frequently reported an increase inearned income, while employment related (50 percent) andcommunity building (46 percent) organizations most frequentlyreported a decrease. Even though earned income has shownpositive growth in the first six months, nonprofits are hesitantwhen estimating what percentage of their annual goals theywill reach.

Twelve percent of nonprofits expect to exceed their annual goals,while 44 percent expect to reach between 91-100 percent oftheir goal, 22 percent between 81- 90 percent of their goal and22 percent falling 80 percent or below their annual goal.

Twenty percent of nonprofits reported income from private foun-dation grants as their primary source of income. Environmental(37 percent), arts (25 percent) and education (24 percent)related nonprofits most frequently reported grants from privatefoundations as their primary source of income.

Revenue from private foundation grants has been the least stableof nonprofit revenue streams. Fifty-three percent of nonprofitsreported a decrease in foundation grants in the past six monthscompared to the first half of 2009, while 16 percent reported anincrease and 32 percent reported grants stayed the same.

In particular, environmental (73 percent) and legal (67 percent)nonprofits reported a decrease in funding from private founda-tion grants. In contrast, twenty-four percent of arts organiza-tions, 20 percent of both health and/or disease related andeducation related organizations reported an increase in privatefoundations grants. Expectedly, only nine percent of nonprofitsexpect to exceed their annual goals, while 35 percent expectto reach between 91-100 percent of their goal, 19 percentbetween 81- 90 percent of their goal and 37 percent falling80 percent or below their annual goal.

GovernmentThe most common primary source of revenue for nonprofits isgovernment funding. Thirty-four percent of nonprofits reportgovernment funding as their primary source of revenue.

The larger an organization’s budget size the more likely theyare to have government funding as their primary source of rev-enue. Fifty percent of very large organizations ($10 million +)and 48 percent of large organizations ($2 -10 million) report-ed government funding as their largest funding source com-pared to 26 percent for small organizations (less than$400,000) and 28 percent for medium size organizations($400,000-2 million). Employment related (65 percent), legalrelated (63 percent), human services (48 percent) and commu-nity building (31 percent) nonprofits most frequently reportedgovernment funding as their primary source of revenue.

Adding to the management challenges can be cash flow prob-lems passed down from cash short units of government. Twenty-seven percent of nonprofits that receive government funding

have reported experiencing delays in payment. Educationrelated (43 percent) and mental health (36 percent) nonprofitshave most frequently experienced delays in government pay-ments. The State of Minnesota has negotiated a $500 millionline of credit for its own use anticipating its own cash flowproblem, increasing pressure on organizations to time managepayments to vendors

The Clean Water, Land, and Legacy Amendment passed byMinnesota voters in 2008 provided an additional revenuesource for many arts and environmental organizations. Forty-nine percent of the arts organizations and sixteen percent ofenvironmental organizations have received funding from theClean Water, Land and Legacy Amendment. Of arts organiza-tions, 42 percent used the funding to expand upon existingprograms and 39 percent used the funding to create a newlong term project. Sixty-seven percent of environmental organi-zations used the funding from new long term projects.

Special eventsMany nonprofits have used special fundraising events to com-pensate for the decline in other revenue areas. Fifty-three per-cent of nonprofits have seen an increase in revenue from spe-cial events in the past six months compared to the first sixmonths of 2009, while 30 percent reported a decrease and17 percent reported revenue stayed the same. Environmentalrelated (75 percent ) and community building (64 percent) non-

profits most frequently reported an increase in special eventsrevenue. Comparatively, employment related (50 percent) andeducation related (42 percent) most frequently reported adecrease in revenue from special events. Sixty percent of non-profits in Greater Minnesota reported an increase in revenuefrom special events ten percent higher than the Twin Cities (50percent).

Page 6: Nonprofit current conditions june 2010

Nonprofits are proactive in response to changing economyIn the past six months, Minnesota nonprofits have been deci-sive in reacting to the current economic crisis. Eighty-five per-cent of nonprofits have made operational changes to help inthe short term and 88 percent have taken steps to plan for thelong term future of their organization.

The most common change nonprofits made in order to respondto the economy has been to increase their fundraising efforts(49 percent).The types of organizations that most frequentlyreported increased fundraising efforts were food and/or hous-ing (61 percent) and legal related (59 percent).

The second most common measure to respond to the economywas to reduce the organization’s budget size (39 percent).Education related (49 percent), legal related (48 percent) andcommunity building (26 percent) nonprofits most frequentlyreported a reduction in budget size, while only twenty-six per-

cent of food and/or housing reported a reduction.

Twenty percent of nonprofits put expansion plans on hold, themost common types being mental health (38 percent), legalrelated (26 percent) and arts organizations (26 percent).

Another common measure taken by seventeen percent of non-profits was to reduce programming. Arts organizations (26percent) and human services organizations (24 percent) werethe most likely to reduce programming. Some other retrench-ment measures taken by nonprofits were to reduce office space(7 percent), with this option most common for legal relatedorganizations (19 percent); reduce the hours of operation (5percent); merge with another nonprofit organization (3 per-cent), a strategy most common among employment relatedorganizations (10 percent); and change the mission of theorganization a very small 2 percent.

“In 2009 and 2010, we reduced staff in administration and building operations to protect programs. We did thisin anticipation of reduced foundation and United Way revenues. At this point, our staffing capacity is stretched tothe limit. There is no margin, even for staff vacations and illness. We are meeting increased demand but cannotstretch the rubber band any further before it breaks.”

-a large human services organization in the Twin Cities

Looking toward the futureAs the recession begins to turnaround, nonprofits report stepsthey continue to take to prepare for the future. including:

• Analysis of financial and programmatic trends over thepast 1 to 3 years (63 percent). The most common types oforganizations: mental health (81 percent) and employmentrelated (75 percent).

• Projection of revenue over the next 1 to 3 years (63 per-cent). The most common types of organizations: foodand/or housing related (87 percent), employment related(80 percent) and mental health (76 percent).

• Development of several scenarios and contingencies basedon various assumptions about funding changes (61 per-cent). The most common types of organizations: mentalhealth (71 percent), food and/or housing related (68 per-cent) and human services (68 percent). The least commontype of organization: environment (47 percent).

• Analysis of fully-allocated costs of programs, including indi-rect expenses and the level of support for these programs(47 percent). The most common types of organizations:mental health (81 percent), health and/or disease related(58 percent) and food and/or housing related (58 percent).The least common type of organization: arts, culture andhumanities (34 percent)

• Consideration of whether or not the organization shouldintentionally run a short-term or long-term deficit (27 per-

cent). The most common types of organizations: mentalhealth (38 percent), health and/or disease related (35 per-cent) and legal related (33 percent). The least common typeof organization: education related (20 percent)

• Renegotiation of terms with funding sources (12 percent).The most common types of organizations: mental health (24percent), health and/or disease related (23 percent) andemployment related (20 percent). The least common type oforganization: arts, culture and humanities (4 percent).

Page 6

90%

Larger nonprofits more likely to plan for the future

70%

80%

50%

60%

30%

40%

10%

20%

0%

10%

Analysis trends Projection of Development ofti i

Analysis oft

Considerationh t t

Renegotiation oftrevenue contingencies

basedprogram costs short term or

long term deficitterms

Small organizations Medium organizations Large organizations Very large organizations

Page 7: Nonprofit current conditions june 2010

Page 5

Perception on economy improvingWhile the past six months have shown some signs ofimprovement, Minnesota nonprofits have not changed theiroutlook on the economy from the last survey. Fifty-eight per-cent of organizations expect an increase in demand for serv-ices and 60 percent expect an increase in expenses.

Nonprofits are slightly more optimistic about raising revenuecompared to previous years. Fifty-six percent of organiza-tions expect a decline in total revenue compared to 62 per-cent for December 2009 and 60 percent for May 2009.Forty percent of nonprofits believe their organization will suf-fer a decline in revenue from individual gifts, which is a 12percent drop from six months ago. Nonprofits report thatthey are less worried about a drop in foundation grants aswell with 55 percent expecting a decline compared to 66percent six months ago.

“We have weathered the last 12 months with salary freezes and position reductions. The next 12 months lookto be a much bigger challenge as previous cuts aren't sufficient to make up the deficit.”

-a large education organization in the Twin Cities

“While 2010 has been a good year so far, we are more concerned about 2011 than the second half of 2010.”

-a large mental health organization in the Twin Cities

*Response to the question: As you look at the next 12 months, what challenges are like-ly for your organization?

70%

Nonprofits are predicting ongoing challenges

50%

60%

40%

50%

20%

30%

10%

20%

0%

Increase indemand for

i

Decline involunteers

Decline in totalrevenue

Decline inrevenue fromi di id l ift

Decline inrevenue fromf d ti

None

services individual gifts foundationgrants

May 09 Dec 09 Jul 10

MCN’s goal to strengthen the economic sustainability of nonprofitsMCN’s member organizations rely on MCN for information,resources and support to help them navigate the economy.With a full set of tracking research, seminars and cost savingdiscounts, MCN is positioned to provide resources and toolsand to drive a new investigation of sustainable models, alongwith partner organizations such as the Nonprofit AssistanceFund and MAP for Nonprofits.

Nonprofit leaders need access to specific information on cur-rent conditions facing the sector, how to demonstrate and com-municate their impact and to imagine what a redesigned sectorwill look like.

As part of MCN’s 2010-2014 strategic plan, MCN’s boardapproved four strategies to fortify nonprofit economics:

a) Create practical tools and applications to increase the oper-ational capacity of small to mid-sized organizations todeliver effective services.

b) Deliver timely fiscal data, revenue trends and projections onMinnesota’s nonprofit economy.

c) Enhance the public dialogue on nonprofit sustainability byproducing practical analyses on the realities of the nonprof-it economy and appropriate management strategies.

d) Provide strategic guidance to nonprofit employers toenhance affordability and purchasing power in health insur-ance decisionmaking.

Page 8: Nonprofit current conditions june 2010

Respondent distributionThis report analyses the results of the fourth Current ConditionsSurvey. The survey was conducted from June 17-30, 2010 andwas sent to approximately 2,000 nonprofits. It was completedby 447 organizations employing roughly 22,664 staff.

The participating organizations represent the full range ofMinnesota nonprofit activity areas, budget sizes and geograph-ic locations. 74 percent of the respondents were from the TwinCities Metro Area and 26 percent from Greater Minnesota.

This is a higher representation from the metro area than forMinnesota nonprofits as a whole, where the Twin Cities MetroArea holds 51 percent of all nonprofits while 49 percent arelocated in Greater Minnesota.

The survey was completed by 54 percent executive directors, 2percent chief operating officers, 8 percent chief financial offi-cers, 10 percent development directors and 26 percent otherstaff positions .

2314 University Avenue West, Suite 20, Saint Paul, MN 55114TeL: 651-642-1904 • 800-289-1904 • Fax: 651-642-1517 • www.mncn.org

About the Minnesota Council of NonprofitsThe Minnesota Council of Nonprofits (MCN) is the statewide association of more than 2,000 Minnesota nonprofit organizations. Through itsWeb site, publications, workshops and events, cost-saving programs and advocacy, MCN works to inform, promote, connect and strengthenindividual nonprofits and the nonprofit sector.

Copyright ® 2010 Minnesota Council of Nonprofits. All rights reserved. Short sections of text may be quoted without explicit permission, provided that full credit is given to the source. Additional copies of this report can be downloaded from MCN’s Web site atwww.mncn.org.

Mental health and

Responses by activity area

Arts Culture and

Community Building,Volunteerism andPhilanthropy

Legal, civil rights,advocacy and/or

crime6%

Mental health andcrisis intervention

5%

Arts, Culture andHumanities

13%

py9%

Education related9%

Human servicesand/or youthdevelopment

29%

Employment

Food and/or housingrelated

Health and/ordisease related Employment

and/or jobrelated5%

9%10%

Environment and/oranimal related

4%