In this series, we take a look at the current news impacting the nonprofit sector, specifically fundraising. Our intention is not to be reactive, but to be proactive in our analysis of the news and consider how fundraising and philanthropic efforts can improve outcomes and adapt to meet the times.
In this week's roundup: A Call For A New Business Model, Opening Campuses, and Hospital Finances.
It’s Time to End Nonprofits’ Hand-to-Mouth Way of Life (Via Chronicle of Philanthropy)
Stephanie J. Hull and Phil Buchanan call for the end of nonprofits either not being encouraged or even allowed to have a financial system in place to weather any storm that might greatly impact the organization as a whole. They argue that cash reserves would allow nonprofits to continue keeping employees working.
Analysis: Nonprofits account for 13 percent of the nation’s workforce. Because of their nonprofit standing, many operate with very tight margins that make it difficult or impossible to account for unexpected crises. It’s critically important that our nation’s nonprofits find untapped sources of revenue to protect the work they do, the communities they serve, and their employees.
Colleges Gamble On Reopening This Fall (Via Axios)
Many colleges and universities are already feeling the pain of losing a semester of students on campus when they were sent home in mid-March. A number of presidents are confident that they will be open for the fall semester, albeit with a different look from their traditional campus.
Analysis: Many experts predict that college enrollment will drop for the upcoming school year, reducing the amount of tuition-paying students that can make up for the revenue losses experienced in the past months. Institutions have already begun planning business models for two scenarios: opening campus and postponing that open another semester.
U.S. Hospitals Are Suffering Financial Damage Due To COVID-19 Pandemic, Kaufman Hall Finds (Via Healthcare Finance News)
Hospitals are feeling similar fiscal wrath. According to Kaufman Hall’s findings, operating margins for broader health systems fell 170 percent below budget for the month of March, which accounted for the sharp drop-off in elective surgeries, treatments, and ambulatory operations. The influx of patients does not necessarily reflect more money coming in since there is an increase in spending to keep up with staffing and equipment demands.
Analysis: The fact that hospitals are seeing an influx of patients, yet a lack of revenue tells us just how difficult this crisis truly is. It will be interesting to follow reopening plans state-by-state and see what that means for elective surgeries, treatments, and ambulatory operations. In the meantime, hospitals find themselves on the frontlines of the crisis in more ways than one.