Non-profits suffering loss of donations during coronavirus
FOX Business’ Gerri Willis explains how non-profits are handling fundraising setbacks amid coronavirus.
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Much like the rest of the U.S. economy, charities are suffering from the coronavirus pandemic.
Without the ability to hold fundraisers and other events, many organizations are seeing a decline in revenue, which could hinder their ability to offer services that people need now more than ever.
“Our research has shown that about 80 percent of nonprofits have fewer than three months of cash in the bank,” Jacob Harold, the president and CEO of Guidestar told FOX Business’ Gerri Willis. “So if this crisis lasts a whole lot longer, we're sure to lose at least some nonprofit organizations.”
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Earlier this month, Charity Navigator and Reuters conducted a study on the impact of the coronavirus and the ensuing economic shutdown on nonprofits.
According to the study, 74.6 percent of respondents had to cancel a fundraising event and 83 percent of respondents said they are “suffering financially.”
The study also reported that 64 percent of respondents had to cut back on programs, but 50 percent said they have seen an increase in demand for programs “due to the pandemic/economic shutdown.”
Before President Trump signed the CARES Act last month, a group of more than 100 nonprofits asked for $60 billion to be set aside specifically for the sector, according to a report from The Wall Street Journal.
The relief package didn’t end up including anything for nonprofits, though some organizations can apply for federal loans, The Journal reported.
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‘We have seen a significant decline in revenue so far, mostly because we had a gala event scheduled for May and that event has now been postponed,” Linda Tantawi, the CEO of Komen Greater New York City said.
According to The Journal, Habitat for Humanity had to close its home-goods stores — which brings in about $500 million every year — and could be forced to close some of its 1,200 chapters.
Meanwhile, the YMCA — which has 2,600 locations — expected it will lose $400 million in April, The Journal reported.
Dale Bannon, the secretary of development for the Salvation Army, told Gerri Willis that the organization has had to get creative with its fundraising.
“The Salvation Army typically has spring fundraisers. They're called our annual dinners,” Bannon said. “Some of those fundraisers in local communities raise thousands of dollars to sustain our operations. Most of them have been canceled, obviously, while we have some that might be doing virtual fundraisers.”