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July 3, 2020
 
Survey Confirms Impacts of Health Crisis on Nonprofits
May 9, 2020 — Nearly three-quarters of nonprofit organizations nationwide have modified or suspended operations or eliminated or reduced positions as a result of the coronavirus pandemic, according to a newly completed survey.

In addition, nearly half of respondents said they anticipate 50% or more of their revenue is at stake.

The COVID-19 Impact on Nonprofit Employers, published by UST, an unemployment trust that works with nonprofits, based on a survey of 800 organizations, reported that:
  • 42.9% modified operations extensively without eliminating positions
  • 16.9% eliminated or reduced positions
  • 13.0% suspended most or all operations
The changes varied by size of organization, with approximately half of those employing 100-300 employees and those employing at least 501 employees reporting no change in staff, because they are considered an essential service.

Fifty percent to 60% of nonprofits employing 50 or fewer employees reported modifying operations extensively without eliminating positions.

Nearly 40% of organizations employing 501-1000 employees reported eliminating or reducing positions.

Sixty-five percent of survey participants were from organizations with 50 or fewer employees.

"Setting aside the expectation of additional financial support from government funded relief programs, over 42% report that they could sustain their organization under their current strategy for six months or longer before needing to drastically reduce costs and/or secure new revenue," the report noted.

While the report did not break out survey responses by state, overall trends appear to be share by Massachusetts nonprofits.

Shortly after Gov. Baker declared a state of emergency on March 10, a statewide survey found that more than 60% of Massachusetts nonprofit organizations had suffered, or anticipated suffering, a loss in revenue due to the coronavirus crisis and nearly all had cancelled programs or events.

In mid-April, the Mass Cultural Council reported that 91% of nearly 700 cultural organizations it surveyed had cancelled programming and events, and 95% of organizations with facilities had closed their facility to the public, and 62% of the organizations reported they were making decisions to layoff or furlough employees or reduce their hours or wages.
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