Public trust in San Diego’s nonprofits has remained high this year, though confidence in their ability to respond to COVID-19 is waning, a new report says, and nearly all local nonprofits are bringing in less money, resulting in layoffs and furloughs.
Released Thursday, the “2020 Annual Report: State of Nonprofits and Philanthropy in San Diego” describes trends in local nonprofits compared to the previous years. The report, authored by a six-person research team at the University of San Diego, draws findings from public opinion polls, federal tax and state employment data, and 200 survey responses from local nonprofit leaders.
Like many organizations, local nonprofits have faced financial stress, layoffs, furloughs and other challenges amid the COVID-19 pandemic, according to the report.
“Declining revenue from cancelled events and programs, along with changes to charitable giving have induced a hollowing out of this essential workforce,” the report said.
“More broadly, nonprofit leaders are reexamining their missions and asking painful questions about their role in perpetuating and addressing inequity.”
The report did not identify specific nonprofits or name the leaders who were quoted.
Pandemic-related pain was not evenly distributed among nonprofit types, according to the report. For example, many nonprofits related to health and human services reported strong financial positions, while organizations devoted to arts and culture were among the hardest hit.
Overall, 79 percent of local nonprofits reported a loss of revenue from fees for services, and 53 percent reported a decline in individual donations, according to the report.
Lost revenue has resulted in layoffs, furloughs and pay cuts, according to the report. Of the 193 nonprofits that reported having employees, 47 percent instituted layoffs or furloughs. Layoffs were most common.
As they were losing revenue, demand for their services was increasing for certain types of nonprofits, according to the report. Half of all local nonprofits reported increased demand, but only 14 percent reported being able to meet it.
The report wasn’t all gloom and doom. It described resiliency and improved financial situations in local nonprofits since the pandemic began in March.
For example, in March, 60 percent of nonprofits reported reduced capacity or none at all, according to the report. By September, the percentage had fallen to 25 percent.
Overall public confidence in nonprofits to provide quality services and make responsible and ethical choices was at 80 percent between April and June. Then it began to erode, reaching 67 percent in September, the report said.
Despite the decline, overall confidence was higher for nonprofits than for government or corporations, which had 63 percent and 59 percent scores, respectively, in September.
