The Minnesota Council of Nonprofits (MCN) recently released their latest research on the nonprofit sector. Read the report.
“Since 2020, MCN has been asking nonprofits what changes they’ve been experiencing in terms of demand for services. Compared to other reports since 2020, this year’s survey showed the highest number of respondents (73%) reporting that demand for services had increased over the past 12 months. Additionally, demand for services was the highest reported factor that has increased out of the other 13 factors included in this survey. This rise in the number of nonprofits reporting increased demand for services is notable as it counters any notion that the impacts of the COVID-19 pandemic and economic downturn have abated. Rather, we are seeing the need for what nonprofits provide continuing to increase over time.”
“Increased expenses are not the only driving factor that’s threatening the financial sustainability of nonprofits. On the national landscape, Giving USA reports giving by individuals increased by 1.6% since 2022 but when adjusted for inflation, individual giving decreased by 2.1% (Giving USA, 2024).”
With this increase in need for services comes an anticipated increase in need for income to provided programs and staff. However, “nonprofits continue to face challenges with financial stability. When asked “How many months before your organization operate in the current environment before exhibiting financial distress?”, 79% reported “less than 12 months”. This is a stark jump from 47% who answered “less than 12 months” in 2022. Based on our respondents, three factors drive the continuous financial distress, including (1) increased expenses, (2) fluctuations in charitable giving, and (3) COVID relief funding being mostly distributed and spent.”
At Banyan Community, we are committed to creating lasting change and empowering individuals from birth through adulthood. Our mission is only possible through the generosity and ongoing support of donors like you. As we look to the future, we invite you to join us in ensuring Banyan’s long-term sustainability by deepening your commitment.