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Were Nonprofits Prepared for Coronavirus?

ThinkGiving

In a 2018 Nonprofit Finance Fund survey of 3,400 nonprofit organizations, half said they had only three months’ cash on hand or less; 19% said they had a month or less.  

The impact of Covid-19 on the global and national economy has been the topic of news stories for over two months.  We have watched nonprofits rise to the challenge of Covid-19 while tirelessly executing their missions to provide essential services – providing healthcare, feeding the hungry, sheltering the homeless, educating children, and many other noteworthy missions. 

With razor thin margins, many nonprofits were already fragile.  It is anticipated that many nonprofits will not survive the economic impact of Covid-19. Those organizations that survive will need to reevaluate their financial standing to ensure longevity.  Many will shift their focus from raising money to for operations alone to raising money to operate and build reserve funds and endowments. With a more solid financial foundation, more nonprofits will survive should another global pandemic occur. Or, should I say, when the next global pandemic occurs. 

About the author

Cathy Sheffield, CAP®, CSPG, CFRE, FCEP

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