For Immediate Release:        Contact: 
February 17, 2009             Linda Davis:ldavis@cvnl.org 
                              Shobha Hiatt: shobhah@cvnl.org 
                              (415) 479-5710 

MARIN NONPROFITS CONTINUE TO LOOK ON THE BRIGHT SIDE AS THE ECONOMIC PICTURE DARKENS

San Rafael, CA – Nonprofits in Marin continued to demonstrate remarkable optimism about their future in the face of a grim economy and shrinking funds. According to the second online economic impact survey conducted by Center for Volunteer and Nonprofit leadership covering the period October through December 2008, an overwhelming 70% of nonprofits said they were hopeful of what the future would hold for their organizations in the next year. Only 22% said their outlook was pessimistic.

The economic impact survey was undertaken by the Center to gather data and study the impact of the current economic downturn on the Marin nonprofit community. It is modeled on the Bay-Area-wide nonprofit pulse survey done by the United Way of the Bay Area in November 2008.

Highlights include:

• Funding: Approximately 52% of nonprofits reported a decrease in revenue in the last quarter (October 1 –December 31, 2008) ranging from 1% to over 10%. Many experienced funding changes with 45% reporting a decrease in individual donations and 34% saying that corporate and foundation giving was down. Delay in receiving committed state grants due to delay in the approval of the California budget was cited by almost 22% of the respondents.
  A little over 73% of the organizations surveyed said they are planning to dedicate more staff and board time to fundraising. 62% will look for new streams of revenue or use their reserve (33%) to cover expenditures.

• Cost Reduction: Many nonprofits (39%) aimed to cut costs by reducing non personnel expenses (44%) while others (39%) would reduce staff hours or cut services (16%) to remain economically viable.
  
  
• Increase in Demand for Services: Overall, Marin nonprofits saw little or no increase in demand for services. About 42% the respondents said that the demand remained the same while 28% saw a small increase in demand.  A high 64% of the organizations said they would be able to meet rising demand for their services.

The survey got its strongest response from the human services segment of the nonprofit community (21%) followed by art and culture (21%) and health (11%). In spite of the grim economic forecast, Marin nonprofits largely remained optimistic of what the future holds for them.

Linda Davis, CEO of the Center says “From our ongoing survey it is clear that one of the pressing needs in the nonprofit sector is unrestricted operating capital.”  She added that though most Marin nonprofits had not realized significant losses yet, or have managed to keep up with the demand for services, many were now starting to reduce staff hours or laying off employees which in turn was beginning to reduce programs and services. “We aren’t simply a group of service providers. While there is an economic bottom line for all organizations—nonprofits create immense social capital which is rarely considered in assessing their value or relevance.”

This online survey is the second of four quarterly surveys that the Center proposes to conduct in order to collect ongoing data on the Marin nonprofit sector and its response to the economic downturn. To read the full survey report visit http://cvnl.org/community/news_issues.html.