The Nonprofit Finance Fund ("NFF") recently released its 2013 State of the Nonprofit Sector Survey. Approximately six thousand respondents from across the country participated. Of those responding:
- Over 40% believe that they lack the proper blend of financial resources to be effective in the next three years;
- One in four has 30 days or less cash-on-hand;
- Approximately 40% plan to change the ways they raise and spend money;
- Just under 25% will seek additional funding through loans or investments;
- Less than 15% of those receiving government funding are paid for the full cost of services;
- Among those receiving government funding, more than 60% reported overdue payments; and
- More than 50% say they were unable to meet demand last year; even more say they will not be able to this year.
According to the NFF, nonprofits are changing the ways they do business by: expanding or eliminating programs or services; collaborating with other organizations; and improving organizational efficiency by upgrading technology and increasing board engagement. Although there appear to be plenty of problems; there are also potential solutions – all of which should be carefully considered.