July 29, 2009
Nearly Half of Charities Have Cut Jobs, Survey Says
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 put a freeze on hiring, and 10.5 percent have mandated unpaid time off or reduced salaries and other benefits.
The survey, conducted earlier this month, 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 51.2 percent of organizations reported that their budgets had been cut this fiscal year, 24.4 percent increased their budgets. The remaining 24.4 percent 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 deeper and deeper cuts.
A May survey by the Bridgespan Group found that 41 percent of organizations had laid off workers, compared with 28 percent in November.
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What possible validity can a survey of 45 charities have?
— Mal Warwick Jul 30, 12:34 PM #
I agree, only 45 charities . . . plus, which kinds of charities? (Edu., social services, global, etc.) We vary so much from one to the other with regard to funding. Are some layoffs mentioned due to Fed or state funding budget cuts or straight donations? Grants and sponsorships included? Hard to compare apples to apples, isn’t it?
— Gail Wright Aug 3, 12:59 PM #
OK. Stand somewhat corrected. The report is very interesting and helpful. Worth looking in to. Broken down at least by size.
— Gail Wright Aug 3, 01:05 PM #
Good observations re. questioning the validity of the sample size and wanting more details. However, it might be even more helpful to develop creative ways to reposition nonprofits in the current recession. This has to cover all elements, including program offerings, marketing, fundraising, and planning — and even considering options such as allying with other nonprofits, merging, or closing.
— Bill Dingfelder, freelance grantwriter, narberth@aol.com. Aug 5, 08:33 AM #