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Research Outline
Prepared for Deleted 5. | Delivered October 4, 2020
Non-Profit Closures
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Goals
To identify the number of non-profit closures globally and reasons for the same for the periods before and during the Covid outbreak.
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Early Findings
Non-Profit Closure Statistics and Insights Pre-Covid
4.2%
of charities in the US closed between 2004 and 2008 versus
5%
in the 2008-2012 period (the aftermath of the financial crisis).
The number of registered non-profits in the US was
1.48 million
in 2006,
1.45 million
in 2011, and
1.54 million
in 2016.
Non-Profit Closure Statistics and Insights During Covid
According to "Rick Cohen, chief operating officer of the U.S.-based National Council of Nonprofits, local non-profits that count on
small donors
are in trouble.
"About
53%
of donors said they plan to be giving more carefully during the pandemic but will continue to still donate, while
20%
said they will stop until there’s a return to economic growth, according to a survey carried out for Dunham+Company."
"
Canceled events
, a sudden withdrawal of government financing and the forced closure of stores that were sources of revenue have led to a depletion of funds."
"While individuals may not be able to donate as much as before, corporate giving has soared in the last few months and accounts for more than
$5 billion
of donations, according to Candid, a group that tracks global philanthropy."
The Impact of COVID-19 on Large and Mid-Sized Nonprofits
83%
of large and mid-sized non-profits have experienced a dip in revenues.
There was a "
47%
reduction in employment in April 2020, compared to April 2019, due to COVID-19 and the economic shutdown."
For large and mid-sized non-profits, there was a
53%
reduction in individual giving and
33%
in philanthropic grants during the pandemic.
"In response to the crisis, organizations reported taking the following actions (respondents could choose multiple options):
"
71%
reported a reduction in services/available operations "
"
67%
have furloughed employees (not working but still provide benefits) "
"
55%
have closed offices "
"
51%
have laid off employees "
"
30%
have reduced employee pay and benefits"
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