Earlier this year, the Center for Non-Profits conducted a survey of New Jersey nonprofits to identify the common ups and downs these organizations experienced in 2015, as well as their outlook for the coming year.
With over 300 respondents having participated in the survey, the New Jersey Nonprofits 2016: Trends and Outlook report reveals just how prevalent under-funding has become throughout the nonprofit sector:
- Nearly 3/4 of respondents reported an increase in demand for their services last year
- More than 1/3 reported that their organizational expenses outweighed the support and revenue they received in the last fiscal year
- Almost 3/4 expect their total expense to rise in the coming year, while less than 1/2 anticipate an increase in funding in 2016
While the general theme of these findings may sound all-to-familiar, these ongoing issues should in no way be accepted as normal or “unfixable.” In fact, these statistics should elicit serious concern for the future well-being of nonprofits and the communities in which they serve.
In order to prevent any organization’s foundation from slowly crumbling, nonprofits must address the gap between the rising need for nonprofit services and their lagging resources. Both leaders and supporters of the nonprofit community have the power to mitigate this disconnect by improving the understanding of nonprofits, ensuring that budgets reflect full costs and that funders understand the budgets, reforming government contracting systems, and making it easier for nonprofits to generate revenue.
While change won’t happen overnight, it’s our responsibility to keep the conversation going in order to reverse the trend of chronic under-funding.
Check out the Center for Non-Profit’s original article, written by Linda M. Czipo, here. And to learn more about how real nonprofits employees are being impacted by under-funding and scarce resources, download a free copy of UST’s 2015 Nonprofit Employee Engagement & Retention Report today.