For Immediate Release:        Contact: 
May 15, 2009                  Linda Davis:ldavis@cvnl.org 
                              Shobha Hiatt: shobhah@cvnl.org 
                              (415) 479-5710 

MARIN NONPROFITS STRUGGLE WITH DECREASED FUNDING AND BUDGET CUTS BUT OPTIMISTIC ABOUT THE FUTURE

San Rafael, CA – As the national economy continues to shrink, nonprofits in Marin are struggling to keep their programs and services going with smaller staff and less funding. According to the third online economic impact survey conducted by Center for Volunteer and Nonprofit Leadership (Center) covering the period January through March 2009, nonprofits reported that funding from all sources –individual donations, government and private foundations- fell significantly, forcing 46% of them to reduce staff hours as a cost cutting measure. In spite of these odds, a healthy 72% of nonprofits surveyed said they were hopeful of what the future would hold for their organizations in the next year. Only 25% 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 43% of nonprofits reported a decrease in revenue in the last quarter (January 1 – March 31,2009) of more than 10%. Many experienced funding changes with 54%  reporting a decrease in individual donations (as against 45% in the previous quarter)  and 47% saying that corporate and foundation giving was down (against 34% in the previous quarter). Decrease in state and local funding was reported by 24.5%.
  63% will look for new streams of revenue or use their reserve (32%) to cover expenditures. These figures were consistent with those from the previous quarter.

• Cost Reduction: Many more nonprofits (46%) aimed to cut costs by reducing non personnel expenses, while others would reduce staff hours (46%) or cut services (20%) to remain economically viable. All these percentages were significantly higher than the previous quarter.

• Increase in Demand for Services: Overall, Marin nonprofits saw little or no increase in demand for services. About 46% the respondents said that the demand remained the same while 28% saw a small increase in demand.  A high 55% 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 (27%) followed by art and culture (14.5%) and health (12%). 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 third 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.