The coronavirus pandemic has taken an immeasurable toll on society. Not only has it been a public health crisis, taking the lives of over 200,000 Americans, but it has also taken a significant toll on the economy. The United States and global economy have experienced a significant recession. Unemployment has skyrocketed and GDP suffered great losses. With all this in mind, another important aspect of the economy and society that should be evaluated with respect to COVID-19 is the nonprofit industry.
Research from Charites Aid Foundation of America found that the fate of nonprofits is rather grim. Well known and big-name nonprofit organizations like American Cancer Society and American Heart Association have experienced a significant decrease in funding and donations. This stems from the pandemic-fueled job losses and fears of getting furloughed or laid off.
Moreover, in a survey conducted in May by Charities Aid Foundation, approximately half of the surveyed responded that they expected their donations to fall by at least 20 percent.
But what does this mean for nonprofits? For one, now they too must lay off millions of employees to compensate for cuts in funding. Next, it is significantly hurting the organizations and populations they are made to serve.
However there exists a silver lining to the situation. In recent years many new methods for fundraising have developed. In the field of nonprofits, platforms such as GoFundMe are considered non-traditional, but they have played a crucial role in keeping nonprofits afloat. Additionally, with the recent trends of calls for social justice, non-traditional fundraising tactics have become even more popular.
Rick Cohen, chief communications officer for the National Council of Nonprofits said, “people who have lost their jobs in the last few months understandably don’t have the resources to donate to charities like they had in the past.”
Furthermore, according to USA today, “In the weeks after the pandemic led to lockdowns across the U.S., around 88% of nonprofit organizations experienced a 15% or more revenue decline, with 13% having to suspend most or all operations, according to the COVID-19 Nonprofit Workforce Trends Report.”
The trends within the nonprofit sector are indicative of just how damaging the coronavirus pandemic is. The virus has shaken up businesses and organization incomparable to issues of the past. As such, it is vital that companies learn how to adapt and innovate in the face of challenges such as COVID-19.
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