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Thank you to all who participated in RubinBrown's 2010 Not-for-Profit Economic Climate Survey. Click here to view a pdf the actual results.
The results of the survey are probably not surprising to those who work in or serve the industry. Overall, the survey shows that despite the fact that the recession has officially ended, not-for-profits (NFPs) are still feeling the effects and expect to continue to do so through 2010. NFPs typically lag the economy, so these results are not unexpected.
Following are a few comments on the results. Note that these comments primarily refer to the combined St. Louis and Kansas City results. Within the survey results, however, we have reported the responses for the two metropolitan areas separately as well as combined. We hope you find this survey to be valuable and facilitate comparisons of your organization to others in your metropolitan area.
- 36% of the NFPs surveyed have budgeted increases in revenues; 45% have budgeted decreases in revenues. Expected sources of revenue increases include social entrepreneurship, new programs and stimulus funds.
- 48% have budgeted increases in expenses; 35% have budgeted decreases in expenses. Most expense reductions are in the staffing and compensation area. This is not unexpected as salaries and related benefits comprise the majority of most NFPs' budgets.
- 36% have budgeted increases in revenues but 48% have budgeted increases in expenses. Obviously, this is not favorable and certainly not sustainable. Depending on prior year results, this may mean "dipping into reserves".
- 69% anticipate greater demand for their services, yet only 48% have budgeted increases in expenses and only 36% have budgeted increases in revenues. NFPs plan to serve more with less, or alternatively, perhaps the demand will not be met.
- To meet demand for services, NFPs are looking for and budgeting new sources of revenues. 38% cite social entrepreneurship; 13% expect stimulus funds and 35% are budgeting new program revenues. In addition, 39% expect to have more fundraising events in 2010.
- Overall 22% of NFPs with endowments are changing their endowment spending. The differential between the responses for St. Louis (26%) and Kansas City (14%) may be attributable to the timing of the adoption of UPMIFA , which was August 28, 2009 for Missouri and in 2007 for Kansas. The largest percentage of NFPs with endowments (48%) will have spending rates in the 4-6% range. The second largest group (36%) has budgeted spending rates in the 0-2% range. 9% are in the 2-4% range and 7% are in the 6-8% range.
- 25% of NFPs have budgeted an increase in the number of FTE's for 2010, presumably to serve the increased demand.
- To manage their salary costs, however, 42% have budgeted "flat" salaries for 2010. Unfortunately, for many NFPs, this is the second year of "flat" salaries. The good news is that 58% are budgeting increases - 17% in the 1-2% range, 28% in the 2.5-3% range, and 13% - 3% or more.
- From an employment perspective, the good news is:
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Certain organizations in the NFP sector appear to be adding jobs.
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As is true in economic downturns, turnover at NFPs is low and the jobs that are traditionally difficult to fill are currently filled.
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For those organizations needing to hire, there is an excellent supply of candidates.
We encourage you to compare your survey responses to these results and to share this information within your organization. If you have any questions about this survey or would like more information about it, please don't hesitate to contact us.
Partner-in-Charge
314.290.3496
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