Nonprofits feeling impact of COVID-19

The Massachusetts Nonprofit Network released survey findings showing the impact of COVID-19 on state nonprofits.

Across the state, nonprofits report revenue loss of $8.6 billion. Almost half of the organizations have reduced staff. Nonprofits in the Pioneer Valley, including Hampshire County served by United Way of Hampshire County, reported the highest percentage of organizations seeking philanthropic support. 

The work of nonprofits has rarely been so critical as now. The pandemic has resulted in an unparalleled public health and economic crisis. It has exacerbated racial and economic disparities. Nonprofits working to support basic needs--such as health care, food pantries, and shelter—have seen a sharp increase in demand. Some report record numbers. In short, nonprofits are being asked to step up at the same time that resources are threatened.

Highlights of the report include:

• When asked how long nonprofits could survive with their current cash flows, the average response was 11 months

• 20% were laying off staff

• 32% were reducing hours and/or pay

• Income has been impacted by reduced services and fundraising events

These finding parallel our experiences. United Way of Hampshire County saw a spike in basic needs in the spring.

“Our nonprofits are a pillar that not only supports our neighbors but makes Hampshire County a model of social service success,” says John Bidwell, Executive Director of United Way of Hampshire County. “Our nonprofits are compassion in action. As we rely on them more than ever it is our job to do everything we can to support them and our community.”

The survey was conducted from March-May by the Massachusetts Nonprofit Network (MNN) in partnership with Philanthropy Massachusetts and generated over 1,500 responses from across the state.  Read more at http://massnonprofitnet.org/advocacy/commonwealth-insights/

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