Nonprofits face unprecedented challenges, revenue loss

Delaware nonprofits are facing unprecedented challenges as they continue to serve their communities, with 98 percent reporting in a recent survey they have been or will be significantly affected by COVID-19.

A Delaware Alliance for Nonprofit Advancement survey of 245 nonprofit organizations found an estimated loss of reported revenue at more than $21 million as of March 20. 

“Based on the sample size relative to the total number of nonprofits operating in Delaware, we are estimating a loss for just these few weeks of over $100 million,” says DANA CEO Sheila Bravo.

Lost revenue is related to canceled programs and lost fundraising. Survey participants also indicated crisis-related expenses of more than $3 million, with 55 percent of those fearful they will not be reimbursed for the expenses or able to regain the lost revenue. Additionally, 65 percent of the respondents said they would lay off employees.

“Nonprofits in Delaware generate over $6.4 billion in revenue annually and employ more than 45,000 employees,” Bravo said. “For community-based nonprofits, 49 percent of revenue is earned through programs and services, many of which have now been compromised by the COVID-19 pandemic. Nonprofits cannot keep their workforce when there is no funding coming in.” 

Bravo said it is an urgent issue for Delaware, as many nonprofits are on the front lines battling the COVID-19 outbreak through healthcare services and emergency assistance, such as food. 

Many nonprofits don’t have technology or resources for a remote staff, Bravo said, and have had to purchase additional phones and video conferencing services to continue outreach services. 

Arts and cultural organizations, considered nonessential by the state, have had to shutter stages and close doors. These organizations are working to determine how much revenue they’ve lost, Bravo said.

The survey was conducted as part of a COVID-19 Emergency Response Initiative in partnership with Delaware Community Foundation, Philanthropy Delaware and United Way of Delaware to coordinate charitable resources to maximize impact statewide. This initiative centralizes charitable donation efforts into two funds – Delaware Does More: COVID-19 Rapid Response Fund and Delaware COVID-19 Strategic Response Fund.   

Donations can be made to Delaware Does More: COVID-19 Rapid Response Fund at United Way at UWDE.org/COVID19 and Delaware COVID-19 Strategic Response Fund at the DCF at delcf.org/coronavirus.

In addition to organizing fundraising for nonprofits, the four agencies are asking the state to provide $100 million of stimulus funding specific to nonprofits to support the high costs for aid, displaced workers and lost revenue. 

“Nonprofits affect the lives of every Delawarean every day,” Bravo said. “We need them to be able to not only support our needs today, but in the future as well.”