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Financial Constraints Are Closing Nonprofits, How they can survive in the year ahead?

by: Alan Tyson

Nonprofits face an uncertain future in the year ahead. While their services have never been more in demand, the lingering effects of a global pandemic and economic recession are undermining their efforts at a critical time.

The results are devastating. Many nonprofits are laying off or furloughing staff, reducing services, or closing their doors altogether. Nearly 75% of organizations are receiving declining contributions, leaving more than half with less than three months of operating revenue and nearly 20% with just a month of financial runway. As a result, The Washington Post estimates that one-third of nonprofits will go out of business before the pandemic ends.

To survive, or even thrive in the year ahead, nonprofits will need to...