Research Outline

Non-Profit Closures


To identify the number of non-profit closures globally and reasons for the same for the periods before and during the Covid outbreak.

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"