Press Release

The Georgia Center for Nonprofits Releases Quarterly Report on Economy’s Impact on Georgia’s nonprofit sector

The Georgia Center for Nonprofits (GCN) released today its research on The Economy’s Impact on Georgia’s Nonprofit Sector from Q1 2009.

Atlanta, GA - 7/24/2009 - The Georgia Center for Nonprofits (GCN) released today its research on The Economy’s Impact on Georgia’s Nonprofit Sector from Q1 2009. These current findings follow from results of a December 2008 study, in which the Georgia Center for Nonprofits surveyed nonprofit leaders across the state to find out how the economic downturn was affecting their organizations. GCN reached out to approximately 800 nonprofit chief executive officers, presidents, and executive directors. At that time, many nonprofit organizations were struggling to meet increased demand for their services in the face of deep budget cuts. However, more than a third of the nonprofits that had already experienced funding cuts were not reducing costs to manage through the downturn. Instead, they were trying to compensate by increasing fundraising capacity.

GCN’s most recent report indicated that much has changed in the U.S. since the initial research. There is a new President, a new budget, and a stimulus package of unprecedented magnitude. At the same time, the country continues to face a prolonged downturn and profound state budget crises. Georgia’s situation has worsened over the period recording record numbers of foreclosures, unemployment reaching +11%, and a projected 2010 $900M budget deficit (rising to a possible $1 – 1.5B shortfall in 2011) which exacerbates issues across the board via governmental workforce reductions, decreased citizen services, and increasingly deeper nonprofit contract reductions.

The Georgia Center for Nonprofits survey was completed  in June 2009 to gauge the effects of these developments on nonprofit organizations. This survey was sent to the same group of leaders who received the previous survey, asking all of the same questions, along with some new ones. The findings indicate that nonprofits are aggressively trying to bridge funding gaps by increasing marketing and development strategies, and they are taking many steps to cut costs and manage the forces that are confronting them as they also strive to deliver in the short term while planning for the future.

However, it also indicates a rising tide of stress indicators that are troubling in terms of the sectors future health, capacity and sustainability. The June 2009 survey findings, along with GCN commentary, are presented in detail in the report Weathering the Storm, which can be found on www.gcn.org.

This research and the corresponding report was made available by The Home Depot Foundation who generously provided their support to this ongoing study.

About the Georgia Center for Nonprofits
An all-in-one resource for and about Georgia's nonprofit sector, the Georgia Center for Nonprofits works to serve, strengthen and support nonprofit, charitable organizations statewide. The Center provides nonprofits with the resources and tools they need to be most effective; promotes partnerships between nonprofits and foundations, businesses and government to meet critical needs; and helps state and local policy-makers and the public, understand and support the work of nonprofits. More information is available online at www.gcn.org.

Media Contact
Nancy Longacre
(678) 916-3030
nlongacre@gcn.org