With so much attention being placed on the economy today, I was very interested to hear from the Minnesota Council of Nonprofits on the economic state of Minnesota’s nonprofit sector. John Pratt, Executive Director, and Ruth Duran Deffley, Membership and Chapter Coordinator visited our office to present the 2009 Minnesota Nonprofit Economy Report and the December 2009 Nonprofit Current Conditions Report.
While the Nonprofit Economy Report utilizes macro data from 2008 to assess trends, the Current Conditions report analyzes results from a survey conducted in the first week of December that was completed by 639 organizations representing 32,589 staff and a combined budget of $2.5 billion. The purpose of the survey is to compliment the Nonprofit Economy Report with quick, real-time analysis of the challenges nonprofits experienced in the last year.
Fortunately the nonprofit sector has not experienced the same magnitude of unemployment as the for-profit sector. The nonprofit sector employs 11% of employees across the state. In 2008 this represented one out of every nine workers in the state. The healthcare industry continues to represent the largest portion of employees. In 2009, nonprofits chose several measures to weather the recession. 32% reduced their number of employees, 52% implemented hiring and/or salary freezes, and 25% have reduced employee benefits. The larger the organization the more likely it was to have cut employee benefits.
Demand for services has increased in recent years particularly in the areas of mental health and crisis intervention, food and/or housing, and employment and jobs. Meanwhile organizations saw a decline in revenue. Organizations most frequently reporting declining revenue were environment related, education and employment and jobs. A few bright lights for the sector appeared in individual giving. 21% of organizations reported an increase in donations from individual donors compared to 2008. A significant factor was GiveMN.org’s “Give to the Max Day” which raised $14 million in charitable donations in one day.
Minnesota’s nonprofits also benefitted from Federal stimulus dollars. Of the respondents to the Current Conditions Report, 30% applied for stimulus funding and 53% were successful in receiving funds. Employment and job related organizations and food or housing organizations were most likely to receive funding. 64% have used the funds to retain existing staff and 50% have hired new employees.
There have been some closings of long-time organizations and mergers, but not at the rate locally that was predicted by national leaders. As John and Ruth spoke it was clear that the Minnesota nonprofits are a hearty bunch. Cutting where needed, relying on volunteers and a strong commitment to their mission, organizations are pulling through and are optimistic about 2010.
Filed under: Uncategorized | Tagged: Economy, Minnesota
