The Impact of COVID-19 on Nonprofits

The Impact of COVID-19 on Nonprofits

Nonprofits are vital to economic success, both federally and locally. Nonprofits are the third largest workforce in the U.S. [1]. and employ almost 18% of all New York City workers. Nonprofits are essential economic drivers, contributing 9.4% (or $77.7 billion/year) to New York City’s GDP [2]. New York City nonprofits pay $42 billion in wages per year to a workforce primarily composed of women (64% of nonprofit workers are women) and people of color (56% are POC) [3]. Nonprofit layoffs, revenue loss, and closures will disproportionately harm women, communities of color, nonprofit leaders of color, and professionals of color.

Employment Reduction

Revenue Loss

  • According to the Fundraising Effectiveness Survey, in the first quarter of 2020, individual giving was down 6% compared to the same time last year, including an 11% decline in March 2020 [6]. 
  • QuickBooks Advanced surveyed 2,000 individual donors in the U.S. and found 34% say they’re giving less today than they were a year ago and 47% say they’re giving less today than they were a month ago [7].
  • A follow-up pulse poll from Nonprofit New York found that 66 respondents lost a total of $31,107,940 in revenue [8].

Projected Closures

  • Researchers from Candid ran estimations on how nonprofits would be affected by the pandemic in 20 possible scenarios. In their median scenario they estimated that 1,829 nonprofits in New York could close because of the pandemic [9].

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[1]  John Hopkins University.(06-2020).The 2020 Nonprofit Employment Report.Online

[2]  NYC Comptroller’s Office.(7-2-20).The Economic Impact of NYC Nonprofit Organizations.Online

[3]  NYC Comptroller’s Office.(7-2-20).The Economic Impact of NYC Nonprofit Organizations.Online

[4]  The Nonprofit Quarterly.(6.24.20).Nonprofits Have Laid Off 1.6M since March.Online

[5]  La Piana Consulting.(6-2020).THE CONTINUING IMPACT OF COVID-19 ON THE SOCIAL SECTOR.Online

[6]  The National Council of Nonprofits.(7-27-2020).Nonprofit Coalition Calls for #Relief4Charities as Senate and House Commence Negotiations on Relief Package.Online

[7] Quickbooks.(6-10-2020).10 ways nonprofits can boost donations, according to a new survey.Online

[8]  Nonprofit New York.(8.2.20).The Impact of COVID-19 on New York Nonprofits.Online

[9]  Candid.(8-17-20).How many nonprofits will shut their doors? State-level data.Online