PMA Consulting, LLC

Beginning of Nonprofit Sector Recovery?

A recently completed survey of 2,356 public charities and 163 private foundations reported a 14-percent drop in the number of participants reporting decreased contributions from a year ago. The number is down to 37 percent in October 2010, while participants saw a 13-percent increase in contributions (up to 36 percent).

The survey was done by GuideStar, the National Center for Charitable Statistics, Association of Fundraising Professionals, the Center on Philanthropy at Indiana University, Blackbaud, and the Foundation Center to create the National Research Collaborative.

Does this herald the beginning of an economic recovery in the nonprofit sector? Though only time will tell, there is a marked wave of cautious optimism about both the sector and the economy.

Some other key highlights from the 2010 fundraising survey:

  • Larger organizations, those with annual expenses of $1 million or greater, were more likely to report increased contributions.
  • As has been true in previous years, respondents who reported decreased contributions cited “Fewer individuals gave” and “Gifts from individuals were smaller” as the primary reasons for the decline.
  • For the eighth consecutive year, a majority (68 percent) of participants reported increased demand for their organizations’ services.
  • Half of the organizations represented in the survey receive the bulk of contributions during the last quarter of the year, the period known as the giving season.
  • Of this number, 36 percent predict that contributions received during the fourth quarter of 2010 will exceed those from the last quarter of 2009, 43 percent expect end-of-year contributions to be about the same as last year, and 22 percent anticipate that end-of-year contributions will be lower.
  • Nearly half (47 percent) of participants expect their organizations’ budgets to increase next year.

Download the Survey below:

2010 Nonprofit Fundraising Survey