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: 22,000 Nonprofits Projected To Close Operations Due To COVID-19, America's Billionaires Have a Hoarding Problem, and Largest Gift in Hospital's History Will Fund Nine-Story Surgical Tower
About 22,000 Nonprofits Projected To Close Operations Due To COVID-19 (Via Chronicle of Philanthropy)
About 22,000 nonprofits will eventually close their doors for good as a result of the current economic crisis, according to new estimates from Candid, a research group. That figure represents a failure rate of 7 percent among the 315,698 U.S.-based nonprofits whose financial data Candid examined for the study. It's the "median" of multiple scenarios produced by Candid and assumes the economic downturn will last 24 months. It also assumes that about 4 percent of all nonprofits would close in the absence of another crisis during that time; so the estimate of nonprofit failures is in addition to that "baseline" of failures expected during normal economic times.
Analysis: For many nonprofits, the true cost of the COVID-19 pandemic is not a drop in fundraising revenue, its the risk of closing doors for good and being unable to serve a community. Today, being mission-driven also means being willing and able to adapt so communities can be served. How are you rethinking and retooling efforts at your organization?
America's Billionaires Have a Hoarding Problem (Via Fortune)
America’s billionaires give in meaningful ways to organizations, but have come under recent criticism for the percent of their philanthropic efforts compared to overall wealth. Bill Gates, for example, is giving $300 million for COVID-19 relief, a number too large for most of us to fathom. But here’s the thing: according to his estimated wealth as of this writing, Gates is giving just 0.3% of his net worth. This article explains how Gates could contribute $300 million every two weeks and still have the same $100 billion at the end of the year as he had in the beginning.
Analysis: Not every nonprofit has a billionaire in its donor pool. But, there are likely a lot of donors who are giving below their overall capacity. Now is a time that diligence can pay off -- by personally connecting with these donors and discovering if they are open to increase their giving.
Largest Gift in Hospital's History Will Fund Nine-Story Surgical Tower (Via North Jersey Today)
A $25 million gift from a Park Ridge businesswoman and philanthropist to Hackensack University Medical Center's foundation for the construction of a major hospital expansion is the largest donation the nonprofit has ever received. The donation from Helena Theurer, announced Thursday evening, will support work on a nine-story surgical tower, currently rising on Second Street in Hackensack. It is the second gift from Theurer, who donated $10 million in 2008 for the cancer center that bears the name of her late husband, John Theurer.
Analysis: Despite the down economy, donors are still contributing major gifts to causes that they support. And Theurer's gift isn't the first time she has committed a major gift during turbulent times: her $10 million gift in 2008 came during a recession as well. Donors are staunch supporters -- when there is a need and they are able, they want to give.
Have a fundraising story you would like to share? Let us know how you've seen frontline fundraisers rise to the challenge and make an impact in their community.