In their survey, over 40 percent of organizations responded that
revenues were down over the previous year, compared with 32 percent that
reported increases. Of those that saw decreases, funds were reduced by 22.5 percent on average.
The reductions led most commonly to hiring and salary
freezes, and layoffs. In addition, service delivery was also hampered: half of
respondents have reduced or eliminated aspects of programs, and 46 percent had slowed
program innovation.
In addition to revenue reductions, nonprofits reported an
increase in the number of people who need their services. There were increases in the number of people needing shelter, greater demand for food air, increases in elderly unable to afford medications, and increases in many other areas.
Nonprofits are struggling to cope with the squeeze. The report finds that 70 percent of nonprofits are increasing fund-raising efforts to raise funds from individuals and foundations. These efforts undoubtedly
place additional strains on the philanthropic and local communities.
The report contains several recommendations in the areas of
improving nonprofit operations and structure, improving capacity (including
advocacy capacity), and addressing public policy and values. In the later category, the report recommends that "as a community we must develop policies and strategies that attack the structural deficits that underlie the serious safety-net issues facing our
state," and that "government must not abandon its safety-net role."
The experience in California is unlikely to be unique;
many other nonprofits throughout the country continue to struggle for the very
same reasons as in California.
The full report is posted on the CAN website at: