Nearly Half of Charities Have Cut Jobs, Says Study

By Caroline Preston

Nearly half of nonprofit organizations (47.5 percent) have laid off staff members to cut costs as donations dwindle, according to a survey by Campbell & Company, a group that consults with charities.

Fifty percent of groups in the survey of 45 charities have frozen salaries, 15.8 percent have stopped hiring, and 10.5 percent have required staff members to take unpaid time off or have reduced salaries and other benefits.

The survey, conducted in July, found that fund raisers were slightly less likely than their peers to be affected by the cuts.

Roughly 43.5 percent of charities had laid off fund raisers, and 13 percent had hired more fund raisers in recent months to help win more donations.

"They are being spared ever so slightly," said Lynda M. McKay, director of executive search and talent management for Campbell & Company.

Some Gains

Despite the recession, the financial picture has not gotten worse for every charity, according to the survey.

While half the nonprofit organizations reported that their budgets had been cut this fiscal year, a quarter of them increased their budgets. The remaining quarter maintained their budgets at the previous year's level.

Most groups in the survey (60 percent) had budgets between $1-million and $25-million.

The findings are similar to other studies showing that nonprofit groups are continuing to make cuts.

A May survey by the Bridgespan Group found that 41 percent of organizations had laid off workers (The Chronicle, July 2), compared with 28 percent in November.