Non-Profit Closures
Delivered October 4, 2020. Contributor: Varun N.
To identify the number of non-profit closures globally and reasons for the same for the periods before and during the Covid outbreak.
Non-Profit Closure Statistics and Insights Pre-Covid
4.2% of charities in the US closed between 2004 and 2008 versus 5% in the 2008-2012 period (the aftermath of the financial crisis).
The number of registered non-profits in the US was 1.48 million in 2006, 1.45 million in 2011, and 1.54 million in 2016.
Non-Profit Closure Statistics and Insights During Covid
According to "Rick Cohen, chief operating officer of the U.S.-based National Council of Nonprofits, local non-profits that count on small donors are in trouble.
"About 53% of donors said they plan to be giving more carefully during the pandemic but will continue to still donate, while 20% said they will stop until there's a return to economic growth, according to a survey carried out for Dunham+Company."
"Canceled events, a sudden withdrawal of government financing and the forced closure of stores that were sources of revenue have led to a depletion of funds."
"While individuals may not be able to donate as much as before, corporate giving has soared in the last few months and accounts for more than $5 billion of donations, according to Candid, a group that tracks global philanthropy."
The Impact of COVID-19 on Large and Mid-Sized Nonprofits
83% of large and mid-sized non-profits have experienced a dip in revenues.
There was a "47% reduction in employment in April 2020, compared to April 2019, due to COVID-19 and the economic shutdown."
For large and mid-sized non-profits, there was a 53% reduction in individual giving and 33% in philanthropic grants during the pandemic.
"In response to the crisis, organizations reported taking the following actions (respondents could choose multiple options):
"71% reported a reduction in services/available operations "
"67% have furloughed employees (not working but still provide benefits) "
"55% have closed offices "
"51% have laid off employees "
"30% have reduced employee pay and benefits"