The State of Quad Cities Nonprofits: One Year Later

GrantsFundraisingLeadershipStrategic Planning

May 11

Over the last year, I have surveyed the Quad Cities nonprofit community to measure the impact of the pandemic on the sector. It has provided a series snapshots in time that has allowed stakeholders and others to better plan ways to support and help nonprofits heal and recover. Hopefully, it has also given nonprofits some comfort knowing how their experiences compare to their peers.

I thank you for your responses and willingness to share your experiences.

Thirty-eight organizations responded to this survey, down from 143 last quarter. You know who you are: thank you!

I think people are either busy, surveyed-out, tired of the pandemic, mostly recovered and not thinking about it, or any combination thereof. Even with fewer responses, these data still provide an informative view of the nonprofit organizations one year after the beginning of the pandemic and large-scale community closures.

With that caveat, this is what you shared.

87% call the Quad Cities home with the balance coming from Iowa or Illinois beyond the Quad Cities. Most people (45%) represent a human services organization, followed by arts and culture (18%), health (13%), community or economic development (13%), education (5%) and religious organizations (2%). This pretty much mirrors previous surveys and the sector as a whole.

1. Only 20% of organizations significant cut or shut down services; 42% shifted delivery methods to maintain services, 21% became busier and could meet the demand, another 16% became busier and struggled to meet demand, findings consistent with previous surveys.

2. One-third of organizations raised more money last year, one-third raised less money last year, and one-third raised about the same. Only one organization raised virtually no money since March 2020. This has shifted from only a quarter ago when half of the organizations raised less money and only 16% raised more. Either donors have become more generous, or nonprofits have become more adapt at asking for money virtually. Or likely both. Preliminary national data for 2020 shows increased giving especially from smaller dollar donors, some foundations, donor-advised funds, and through online giving. If you raised less money, you might want to examine your development strategies and messaging and adjust accordingly.

3. 42% of organizations brought in more money from non-philanthropic sources; another 42% lost earned income. Only 21% saw their non-philanthropic money stay fairly steady. This represents an improvement over the last quarter when more than half had lost non-fundraising revenue and only 22% had either increased or kept their non-philanthropic funding steady. Again, nonprofits likely found creative ways to generate revenue when their traditional avenues closed. I also think people became more accepting of paying for virtual content.

4. 40% of organizations have mostly recovered financially; another 34% see their way back to “normal.” Only 26% continue to struggle. No one who completed the survey has or foresees needing to cease operations. Yeah! With early predictions that one-third of nonprofits could fail as they did during the 2008 recession, the Quad Cities should celebrate this fact!

5. Everyone who took the survey feels confident in their organization’s ability to recover during 2021. Of these 80% feel “extremely confident” or “very confident.” That said, a few things would make them feel more confident about their future: (1) the community opening more as a result of fewer COVID cases and more vaccinations; (2) more clarity about projected funding streams from government and private sources including foundations; and (3) an adequate number of qualified staff to allow them to fulfill their mission.

6. 55% of organizations did not cut their budget or anticipate future budget cuts, a slight improvement over the last quarter when half of organizations had cut their budgets and another 11% anticipated cutting them. Of those who cut their budgets, most frequent cuts came in programs (52%), capital purchases or deferred maintenance (43%), and number of staff (39%), consistent with previous surveys. Importantly, the previous survey collected data just after the American Rescue Plan passed; many nonprofits may have still been examining ways to use those funds and to understand if and how they qualify.

7. 87% of surveyed organizations received government assistance during the pandemic. Only 5 did not. Government assistance allowed 58% of these organizations to operate normally or close to normal; 24% paid staff during the pandemic in spite of cutting programs, and 8% delayed cutting staff and programs. Only 4 organizations did not qualify or apply for government assistance.

8. Most common staff concerns continue as worry about health and safety (61%), challenges meeting personal responsibilities (55%), and increased workloads (53%), numbers consistent with last quarter. 85% of organizations feel moderately to highly prepared to handle the impact of these stressors on staff, again consistent with last quarter. Either people feel better able to manage these stressors or have become numb to them, what some have described as languishing.

What does this all mean for our community, your nonprofit, and you?

1. Nonprofits have turned the corner and have begun to live in their “new normal.” This confirms what I hear and read about nationally. This also means that nonprofits can stop operating in panic mode and begin seriously planning for their future.

2. Nonprofits feel uncertainty emanating from forces beyond their control. Transparency from local funders about projected future funding including the likelihood of pandemic-induced changes continuing as well as from government officials about regulations going forward would help alleviate some of that uncertainty.

3. Staffing shortages served as the other pain point with an inability to find qualified staff to fill open positions, a concern echoed across sectors and around the country. This employee shortage suggests the need to find some creative ways to find, train, hire, and retain staff for needed positions. Perhaps more job-sharing arrangements, expanded flexibility in terms of hours and locations, or shared services might become more commonplace as nonprofits seek to help the community recover from the pandemic. One respondent noted: “The need for consolidated/shared services for small organizations has become even more apparent, as this will enable senior management to remain mission-focused and allow organizations to be nimbler on a shoestring.”

4. People drive nonprofits and investments in people will need to continue. Organizations that succeed will find ways to help their staff navigate the new normal in terms of work-life balance and the other changes brought about by the pandemic and the stressors that come with it.

The small number of responses to this survey suggests caution when drawing sweeping generalizations based on these data alone. However, the consistency of these funding with national trends and anecdotal evidence from local nonprofits give me confidence that they generally represent the local landscape.