The coronavirus (COVID-19) pandemic is complicating an already complex funding landscape for nonprofits. While the need for nonprofits’ programs and services is increasing—exponentially for some—nonprofits are having to cancel events, and donors and foundations are losing money in a volatile stock market.
At the Center for Effective Philanthropy (CEP), we believe that the nonprofit perspective on issues that affect the sector provides crucial insight into how funders can have greater impact. In November of 2019, we surveyed nonprofit CEOs from our Grantee Voice panel—a national sample of CEOs from nonprofit grant-seeking organizations that receive at least one grant from foundations giving $5 million or more annually—to learn how they are thinking about and responding to a variety of anticipated changes and challenges. All of these issues are even more relevant as the coronavirus pandemic—and its economic implications—intensifies.
CEP published what we learned from this survey last month in a report titled The Funding Landscape: Nonprofit Perspectives on Current Issues in Philanthropy. Some key highlights of the report include:
- The impact of recent tax code changes
- Anticipated changes in nonprofits’ revenue
- Concerns about a recession
- The pros and cons of donor-advised funds (DAFs)
- The prevalence and use of gift acceptance policies
Given the current pandemic and economic crisis, nonprofit CEOs’ concerns about decreasing giving, declining revenue, and a recession are likely more severe now than they were four months ago when we surveyed them. How can you best support these leaders through this crisis? Here are some ideas to consider:
- Build strong relationships with the nonprofits you support
- Ask nonprofits what they need.
- Be transparent with nonprofits about the likelihood that you will give in the future
Read the full article about nonprofit issues during COVID-19 by Hannah Martin at the National Center for Family Philanthropy.