NONPROFIT LEADERS FORECAST WORSENING CONDITIONS, ACCORDING TO MARKS PANETH SURVEYAugust 1, 2017
New York, NY (August 1, 2017) – The majority of nonprofit leaders expect conditions in the nonprofit sector to be more difficult in the next 12 months, 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.
This pessimism, expressed most often by leaders of larger nonprofit organizations, is driven by fears that federal funding will dry up. Survey results indicate:
- 37 percent of survey respondents anticipate reductions in funding in the next 12 months, with the largest decline expected to occur in federal funding.
- 60 percent of respondents expect a decline in federal funding over the next 12 months.
- More than one in four respondents report that federal funding is “extremely important” to their organization’s viability.
- By contrast, state and local funding is expected to remain stable.
While government funding is expected to decrease, 62 percent of nonprofit leaders surveyed expect the demand for services to increase over the next year, with almost one in four predicting demand to increase sharply.
“The big challenge that lies ahead for nonprofit organizations is the gap between demand for services and availability of funding,” says Hope Goldstein, Co-Partner-in-Charge of the Nonprofit, Healthcare & Government Group at Marks Paneth. “Financial oversight and strategy have never been more essential in the nonprofit sector.”
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.