Survey: Northeast Ohio Nonprofits Brace for Tough 2010; Turn to Collaboration and Financial Planning

Survey: Northeast Ohio Nonprofits Brace for Tough 2010; Turn to Collaboration
and Financial Planning

BVU and Nonprofit Finance Fund Find Only 29 percent of Area Nonprofits Expect
to Cover 2009 and 2010 Expenses

CLEVELAND, Oct. 8 /PRNewswire-USNewswire/ -- Nonprofits in Northeast Ohio are
facing decreased revenue and an increase in demand as they look toward 2010,
according to a survey released today by Business Volunteers Unlimited (BVU)
and Nonprofit Finance Fund (NFF). More than 100 respondents painted a grim
financial picture of the sector, but also detailed extensive and promising
collaboration efforts that outpace national counterparts.

Key findings include:

-- Only 17 percent of respondents expect to be above break-even for the
current fiscal year, down from 35 percent the prior fiscal year.
-- Of the nonprofits that receive each type of funding, 67 percent expect
a
decrease in foundation revenues, 54 percent expect a decrease in
government revenues, and 40 percent expect a decrease in gifts from
individual and corporate donors.
-- 80 percent of nonprofits predict an increase in demand for services
for
the remainder of 2009 and in 2010.
-- Fewer than half of nonprofits that expect an increase in demand are
planning to reduce programs.
-- Nonprofits are responding aggressively to economic challenges in order
to meet the needs of their constituents. They are taking action in
myriad ways:
-- 59 percent have collaborated with other organizations on programs
and/or administration in the past 12 months.
-- 51 percent have developed a "worst-case scenario" contingency
budget.

-- 56 percent have engaged more closely with their board.

"Northeast Ohio nonprofits are working together and getting creative in the
face of significant financial challenges," said Ann Kent, Vice President,
Services to Nonprofits of Business Volunteers Unlimited. "If there is a silver
lining to the economic uncertainty, it is that organizations are going beyond
survival mode to pursue fundamental improvements in strategy, finance, and
service delivery."

In addition to steps that Northeast Ohio nonprofits have already taken, 55
percent of nonprofits expect to collaborate on programs in the next 12 months,
26 percent will collaborate to reduce administrative expenses, 55 percent are
planning closer board engagement, and 50 percent plan to hold conversations
with funders to discuss financial realities. Local interest in collaboration
is high when compared to findings from Nonprofit Finance Fund's March 2009
survey of nonprofits nationwide, where 42 percent of respondents either had or
were planning to collaborate on programs, and 13 percent had or were planning
to partner to reduce administrative costs.

"For many nonprofits, 2010 will be even more difficult than 2009 as economic
uncertainty continues to buffet the sector and exacerbate long-standing
problems," said Dione Alexander, Vice President, Midwest Region, Nonprofit
Finance Fund. "The actions that Northeast Ohio nonprofits are taking to
address systemic issues give hope that they will emerge from these tough times
stronger and able to continue to meet the growing needs of the communities
they serve."

About Business Volunteers Unlimited
Business Volunteers Unlimited (BVU) links businesses and nonprofits to foster
excellence in the nonprofit sector. BVU strengthens nonprofits by involving
thousands of volunteers from the community; engaging hundreds of business
executives and professionals on nonprofit boards of directors; and providing
leading-edge board and management consulting and training services for
nonprofits. By leveraging involvement from businesses, BVU enables businesses
to build strategic, powerful and enduring relationships with the community.
Last year, BVU worked with more than 150 businesses and 800 nonprofits in
Northeast Ohio.
(www.businessvolunteers.org)

About Nonprofit Finance FundNonprofit Finance Fund (NFF) is a national leader
in nonprofit, philanthropic and social enterprise finance. Founded in 1980,
NFF (www.nonprofitfinancefund.org) provides loan financing, access to capital
and direct advisory services that build the capacity and the financial health
of nonprofits. A leading community development financial institution with over
$80 million in assets, NFF has provided over $197 million in loans and access
to additional financing via grants, tax credits and capital in support of over
$1 billion in projects for thousands of nonprofit clients nationwide. NFF has
a staff of more than 75 serving nonprofits nationally from offices in New York
City, Philadelphia, Newark, Boston, Detroit, Washington, D.C., and San
Francisco.

For more information, contact:

Business Volunteers Unlimited
Ann Kent or Elizabeth Voudouris
216-736-7711
akent@businessvolunteers.org
evoudouris@businessvolunteers.org

Louder Than Words for Nonprofit Finance Fund
Tricia McKenna or Crystal Noble
781-487-0002
nff@louderthanwords.com

SOURCE Business Volunteers Unlimited

Ann Kent, +1-216-736-7711, akent@businessvolunteers.org or Elizabeth
Voudouris, +1-216-736-7711, evoudouris@businessvolunteers.org, both of
Business Volunteers Unlimited, or Tricia McKenna, +1-781-487-0002,
nff@louderthanwords.com or Crystal Noble, +1-781-487-0002,
nff@louderthanwords.com, both for Business Volunteers Unlimited