The Great Recession is over, but nonprofits in Colorado and across the nation still are struggling to reverse fundraising declines that began in 2008.
Among the 400 largest nonprofits in the United States, only half are raising more than they did in 2007, according to a study by the Chronicle of Philanthropy. The top nonprofit, United Way Worldwide, has lost more than 16 percent of private donations since 2007, and raised $3.9 billion in 2012, less than 1 percent more than it raised in 2011.
Fundraising among nonprofits of all sizes is uneven in Colorado, too. Nearly 58 percent of the state’s nonprofits reported that they will meet or exceed their individual donation goals. More than 34 percent expect to fall short, according to a survey just released by the Colorado Nonprofit Association.
“Most will meet their fundraising goals this year,” Colorado Nonprofit Association CEO Renny Fagan said, “but a big number will not.”
Nearly 77 percent of Colorado nonprofits logged increased demand for services this year. But more than 22 percent cut back programs, and nearly 17 percent turned away clients.
Food pantries have been hit particularly hard because of recent cuts in benefits from the Supplemental Nutrition Assistance Program, formerly called food stamps. About $5 billion will be cut in fiscal 2014, affecting about 47 million people. For a family of four, benefits will drop to $632 per month from $668.
“We’re seeing increased demand,” said Kristi Adams, board president of Community Food Bank in Grand Junction, which last year served nearly 17,000 people in Mesa County. “However, we have not regained any of the corporate funding we used to receive before the downturn, and our individual and church donations remain significantly down.”
The food bank’s revenues plunged nearly 30 percent the past three years, to $85,267 in fiscal 2013 from $120,496 in fiscal 2010.
They are among 66 percent of Colorado nonprofits that plan to try new fundraising strategies in 2014.
“We’ve created a marketing committee and a fundraising committee to help us address some of these concerns,” Adams said.
At Caring Ministries in Fort Morgan, the lack of affordable housing — combined with cuts to SNAP benefits — has triggered increased demand for the group’s homeless shelters and emergency food pantries. The September floods made things worse.
“Many of our individual donors redirected their funds toward the flood recovery instead of supporting us,” executive director Debora Beck-Massey said.
The floods harmed many Colorado nonprofits, according to the survey, with 17 percent saying donations have dropped because donors redirected their giving. About 76 percent said they have experienced no change in donations, although results are not yet in from the traditional giving season of December.
Across the country, there has been an 8 percent decrease in charitable contributions since the recession hit, according to the 2013 Giving USA Report from the Lilly Family School of Philanthropy at Indiana University. About $316 billion was given in 2012, down from $344 billion in 2007.
Experts estimate that it will take about seven years for charitable giving to return to pre-recession levels.
“People are (reluctant) to part with their money unless they think the economy is stable,” said Michael James, development director for the Colorado branch of Volunteers of America.
This year, VOA fared better with fundraising, with two successful events, including the annual Western Fantasy gala that raised $300,000 in a single night — more than the record high of $200,000 in 2006.
In fiscal 2013, VOA raised
$4.2 million, about the same it raised in 2008, up from $3.9 million in 2011.
“The jury is still out,” James said. “But there are very positive indicators that people and companies seem to be moving in the right direction.”
Big Brothers Big Sisters of Colorado has gotten back to its pre-recession fundraising level and expects about 4 percent growth next year, CEO Dave Ryan said.
“It’s slow, steady growth but not huge growth,” he said. “We’re seeing enormous growth in the S&P and Nasdaq, but is that really translating to increased philanthropy? I’ve not seen that yet.”
About 11 percent of survey respondents said they planned to restructure to get fundraising back on track. JEWISHcolorado CEO Doug Seserman thinks he knows why.
“Nonprofits have boards that are very invested with their financial and emotional resources, so it’s very hard for them to really change when they’re so connected to that,” he said.
His organization — formerly called Allied Jewish Federation of Colorado — faced this tough decision. The recession, combined with changing demographics in the Jewish community, led to a 20 percent decrease in revenues from the annual fundraising campaign, down to $10.1 million in 2012 from $12.5 million in 2008.
In October, the nonprofit emerged from a three-year strategic planning effort with a new business model and a new name.
JEWISHcolorado combines the former federation and the Jewish Community Foundation, which was the federation’s endowment and planned-giving section.
In fiscal 2013, total financial resource development increased to $19.8 million, up more than 7 percent from $18.4 million in 2011.
“Had the downturn not happened,” he said, “I’m not sure we would have felt the urgency or had the courage to change in the evolutionary way that we think we have.”
24 hours to give where you live
Last year Colorado Gives Day raised $15.4 million in 24 hours for nonprofits in the state. The 2013 online campaign starts at 12:01 a.m. Tuesday. For more information, go to coloradogives.org.
