74% of Arizona nonprofits had to close their physical locations for a period of time because of the time period … [+]
According to a new report from the Alliance of Arizona Nonprofits, hundreds of nonprofits across Arizona reported crippling effects from the first year of the COVID-19 pandemic: 2,100 layoffs, 73,400 volunteers, and more than $ 91 million in lost revenue.
“The survey results were only surprising in terms of the magnitude of the losses, as we know the capacity of nonprofits across the state has been hit by the impact of this pandemic,” said Kristen Merrifield, CEO of Alliance of Arizona Nonprofits.
Of the 412 nonprofits that responded, 52% said their fundraising campaigns decreased by the end of the year. Of these, more than 60% reported a decline between 11% and 50%.
The dramatic loss of revenue was the equivalent of a widespread closure of physical locations – 74% of nonprofits closed for at least a certain period of time and 43% remain closed indefinitely. The loss of revenue was most evident with arts and cultural organizations, with the average loss exceeding $ 750,000 per nonprofit. The average nonprofit health and personal service lost nearly $ 600,000.
Corporate donations were consistently down more than 65%, while individual donations were down 55%.
When asked what it takes to stay afloat, 81% of nonprofits said they had unlimited funding.
The report includes anonymized quotes from nonprofit respondents, many of whom used strict language to express the gravity of the circumstances
“Virtual fundraisers are not performing,” wrote one respondent. “We need to increase donations.”
“Our primary sources of income have been severed completely due to COVID-19,” wrote another respondent. “Although we have made the move to virtual events and experiences, we still need assistance to pay for our organization’s program costs and administrative costs.”
The Arizona Alliance nonprofits pointed to the upcoming Donation Day in early April as a possible moment for many of the organizations named in the report.
“The good news is that most Arizona nonprofits have proven nimble and adapted as needed, strategically building alliances with other organizations, either 100 percent virtual changing programs, or adapting to social distance and the way they work Having overhauled in the past, “Merrifield said.” That said, it is clear that organizations need more support to weather the end of the pandemic, and that is what makes this year’s Arizona Gives Day on April 6th so important. “