Nonprofits are Struggling, and are Likely to Continue to for Months to Come

So much of the news surrounding the outbreak has been gut-wrenching. Even beyond the rapidly escalating infection and death rates—which shouldn’t be glossed over—unemployment rates have soared to unprecedented heights and virtually every sector of our economy has ground to a halt. By the time we enter something resembling a recovery phase, every one of us will be affected by COVID-19 in some lasting way.

It should come as little surprise, then, that nonprofits everywhere are in trouble—even as many continue to provide critical services and rush to fill the gaps in the COVID-19 response. According to a survey conducted last month by Reuters News and Charity Navigator, a charity assessment organization, 83% of nonprofits who responded reported that the pandemic and ensuing shutdown has hurt them financially.

Even more, more than half of the nonprofits said they were experiencing increased demand for their programs, yet, either because of the financial shortfall or shelter-at-home restrictions, two-thirds said they’ve had to cut back on their services.

In a much larger survey conducted by Charities Aid Foundation of America between March 24 and 26, 96.5 percent of 550 nonprofits polled across 93 countries reported negative impacts related to the virus, according to Philanthropy News Digest, including a drop in contributions (67.9%), disrupted contact with donors and recipients (63%), staffing disruptions (48.6%), increased costs (34%), and supply chain disruptions (31.1%). All of that as nearly half of those nonprofits provided services to people impacted by the virus, including food banks and medical services providers.

And it’s expected to get worse for the foreseeable future. About 41% said they’re expecting their revenue to decrease by at least 21% over the next 12 months.

All of which is to say that even a small donation can have an incredible impact on both the short- and long-term health of a nonprofit, not to mention all the people who are served by it.

How you can help

For the last 55 years, NORWESCAP has been helping to support low-income families and individuals across Northwest New Jersey. Today, as our region and country face the threat from COVID-19, that commitment is stronger than ever.

If you’re looking for opportunities to volunteer, donate materials, or otherwise support NORWESCAP’s work during this crisis, call MaryBeth Ringo at 848-459-5882 or email her at ringom@norwescap.org. Monetary donations may be made here.