According to strategic advisor and nonprofit consultant – Matthew Brannelly, the COVID-19 pandemic had a detrimental impact on the whole world. Affecting civilians, government organizations, and private organizations all alike. And to no surprise, the Nonprofits were no exception.
A survey revealed by Orbit NFP Hub, an organization led by Matthew Brannelly that helps nonprofits to become more efficient, showed a clear decline in revenue, individual giving, and grants that have consequently affected the services provided by them during the months of the COVID-19 pandemic. As such it also had an impact on the employment aspect of these nonprofit organizations and furloughing of employees and laying them off was a common sight.
Of the total number of respondents in this survey, conducted by Matthew Brannelly and his team, 80% of the nonprofits reported a decline in revenue generation through various means. The most apparent of them being revenue generation through different events and activities. This decrease in revenues naturally has affected the capacity of these organizations to retain their employees and 38% of them reported reducing their workforce. And furloughing their employees was the most common approach.
Added to these problems was the imbalance in demand and output. Reduced revenue and employees but the increased demand for services during the COVID-19 pandemic caused staff disruptions in these nonprofits. This hindered the realization of their goals.
But not all of the respondents were in a negative puddle. 25% of them reported an increase in employment during this period and 75% among them view such employees as a permanent addition to their workforce. Some organizations even have projected that they will reach their revenue goals. And even many others have opted to merge with partner organizations to continue providing their services and cut other costs. This step will also decrease the workload on individual employees during these trying times.
The Main points Noted during the Survey:
1. The decline in revenue:
80% of the respondents have brought up this point. Their common argument being
· Decrease in philanthropic grants
· Decrease in individual giving
· A decline in revenue generation through events and activities
2. Impact on employment:
38% of the surveyed organizations reported having decreased their workforce. Some among them have also reported that their workforce was cut in half and employee benefits were reduced. The hiring of new employees was also difficult due to the worldwide shutdown.
· Healthcare facilities could not be provided to them.
· As working in person was not an option, virtual methods had to be applied, which further added to the problem.
· The workload on individual employees was overwhelming. Owing to this, many quit willingly.
3. Impact on operations:
Not being able to reach their targeted goals was a common sight for these nonprofits. This follows naturally from the effect on employees caused by the COVID -19 pandemic. The main causations are as follows.
· Furloughing of employees.
· Limited revenues.
· Online mode of communication and work, which lowers the effectiveness of any actions.
It is immanently clear that these various nonprofit organizations require solutions and new ways that would help them get back on track and start providing their valuable service to humanity again in the most effective way. Taking measures like additional loan options of forgiving loans, payroll tax relief, additional grants, etc might prove to be beneficial.
We, at Orbit NFP Hub, dedicate our hearts to doing the same. Our creative solutions, developed by an efficient team headed by Matthew Brannelly, to cope with these new times when the definition of ‘normal’ is changing every day are sure to take your organization to new heights.