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Recession Hits Nonprofits Across Globe, Yet Many Confident for Future

Resource Center - Foundation

(Sept. 29, 2009) While the income reported by a cross-section of nonprofits globally had declined for half of those surveyed, there is increasing optimism for the future. 

In a report by The Management Centre (=mc), 132 directors of fundraising from several regions of the world reported on their income from the past year and their outlook for future fundraising.

Fifty percent of nonprofit organizations globally reported a decline in income over the past year. A third (33 percent) saw an increase. Of those that saw decreases, almost 20 percent saw their income fall by more than 10 percent. However, of those organizations that saw increases in income, 14 percent reported income growth of 10 percent or more.

The report shows that nonprofits in Asia were hit hardest with an average income change of -13 percent. European organizations saw a more modest change of -1 percent.

Signs of Recovery

Despite the drops in revenue faced by many organizations worldwide, fundraisers' confidence is growing. Fifty-six percent report that they feel more optimistic about donations in the coming 12 months.

Only 11 percent of respondents are less optimistic in their outlook for the next 12 months. Thirty-three percent are about the same. Interestingly, the report notes, organizations that saw a drop in income are on average no less optimistic than those that didn't.

Europeans were the most pessimistic regions about future outlooks for fundraising, with just 30 percent feeling optimistic about the coming year. Asians, on the other hand, are the most optimistic, with 70 percent feeling things will improve over the next year.

Click here to access the =MC Global Fundraising Confidence Report 2009.

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