Marks Paneth Survey finds Private Funding Sources more important to Nonprofits than Government FundingSeptember 18, 2017
New York, NY (September 18, 2017)– Fearing that government funding will continue to decrease, nonprofit leaders are turning more to private funding sources, according to the most recent edition of Nonprofit Pulse, a national survey of nonprofit leaders and executives undertaken by leading accounting, tax and advisory firm Marks Paneth LLP.
Respondents to the Summer 2017 survey reported that the following private funding sources are “extremely important” to the viability of their organizations:
- Individual donors (54 percent)
- Foundations and corporations (52 percent)
- Investments (18 percent, primarily among larger organizations)
This growing reliance on private funding sources is fueled by pessimism about federal funding availability, with 60 percent of respondents expecting a decline in federal funding over the next 12 months. State and local government funding is expected to remain stable.
“Nonprofit leaders are expressing major concerns about government funding at the same time as demand for their services is increasing sharply,” says Hope Goldstein, Co-Partner-in-Charge of the Nonprofit, Healthcare & Government Group at Marks Paneth. “The survey clearly points out the need to mind this gap and focus on strong financial oversight and strategy.”
The survey also explores reasons why nonprofits turn down funding, the burden of SROI tied to funding, the most frequently utilized fundraising strategies, and the growing importance of private funding sources.
The Nonprofit Pulse represents the findings of a survey of nonprofit leaders in the United States. The 371 nonprofit sector leaders participating in the research include Board Chairs, Presidents, Executive Directors, Chief Executive Officers, Chief Financial Officers and Treasurers working in a wide range of organizations within the nonprofit sector.
The research employed self-administered questionnaires completed online by respondents. Marks Paneth, the research sponsor, supervised development of the survey questionnaire and Business Research Solutions managed the research project. Interviews were completed during May 2017.
About Marks Paneth
Marks Paneth LLP is a premier accounting firm with origins dating back to 1907. With a team of nearly 700 professionals, the firm provides a full range of audit, accounting, tax and consulting services, with specialties in international tax, forensic accounting, litigation support, family office and financial advisory services.
Marks Paneth professionals deliver expert knowledge in a wide range of industries, including real estate, hospitality and restaurants; nonprofit, government and healthcare; manufacturing, wholesale and distribution; theater, media and entertainment; high-net-worth; and financial and professional services. The firm offers expanded resources through its subsidiary technology consulting firm, Tailored Technologies, LLC, and its membership in Morison KSi Ltd., a global association of professional service firms serving clients’ cross-border accounting, tax and consulting needs.
Headquartered in New York City, with additional offices in New York State, New Jersey, Pennsylvania, Washington, DC and Florida, Marks Paneth is ranked by Accounting Today as the 30th largest accounting firm in the nation and among the top 10 in the Mid-Atlantic Region. For more information, visit www.markspaneth.com.