NONPROFIT ECONOMIC OUTLOOK REPORT RELEASED: Outlook is restrained and practical

2011 State of Wisconsin Nonprofit Report
Outlook is Restrained and Practical

The results of the 2011 Wisconsin Nonprofit Economic Impact Report were recently released, and the outlook is one of cautious realism.  The third annual statewide survey of nonprofits, conducted by Forward Community Investments (FCI) and sponsored by Wegner CPAs, was undertaken to enhance insight into how the state of the economy in Wisconsin is impacting the operations and finances of Wisconsin nonprofits.  

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The four survey factors included: future outlook, cash flow and capital, capacity building and collaboration. The results of this year’s survey show that nonprofits continue to face tough times; while their commitment to driving their missions remains strong, donations are decreasing and many are using dwindling cash reserves to fund their day-to-day operations.

“The results of this report are alarming but not surprising,” said Salli Martyniak, president of FCI.  "Year after year, nonprofits are seeing the demand for services increase while funding continues to decline.  In order to effectively manage challenges and explore solutions, nonprofits, boards of directors, funders and key stakeholders must work together.  It’s a matter of learning to listen and listening to learn,” continued Martyniak. 

Check out the NBC15 News segment highlighting the report.

Some key findings of the report include:

• Of all respondents, 24% had cash reserves of one month or less; 27% had two to three months of reserves; 49% had four months or greater.
• One-quarter of reporting nonprofits feel financially healthy; one-half report feeling vulnerable and another quarter face chronic financial problems.
•  In summary, the overall attitude was one of caution amid grim conditions.

When compared to the results of the previous year’s survey, nonprofits are facing more challenges than they were a year ago. Specifically:

• The proportion of nonprofits planning to expand their services [to meet increased demand] is significantly lower.
• In 2011, 46% of nonprofits who receive government funding reported a decrease in their contracts, compared to 28% in 2010.

The survey reflects the larger commitment of Forward Community Investments to partner with nonprofits across Wisconsin in order to build stronger communities. Not only did the survey identify challenges, but it also sought to identify solutions to overcoming the challenges facing nonprofits. The results provided Forward Community Investments with a snapshot of the situation nonprofits are facing and recommendations for how to overcome challenges and capitalize on successes.