NAM Poll Estimates that Heartland Nonprofits Will Lose $42M Because of COVID

A new Nonprofit Association of the Midlands (NAM; www.nonprofitam.org) poll of 231 nonprofit organizations in the region found that the COVID-19 crisis is having alarming financial and programmatic repercussions on the sector, with Heartland nonprofits expected to lose $42 million in revenue as a result of the pandemic. Fully 97% of poll respondents said they expect the coronavirus to have a negative effect on their nonprofits, while 81% said it will affect their budgets, and 61% say the impact will be significant.

The survey, conducted April 23-29 as a follow-up to a similar mid-March survey, included responses from nonprofits related to arts, culture and humanities, environmental issues, animals, international affairs, religion, education, health and human services, public and societal benefits, and member and unclassified organizations. Of the total respondents, 49% operate in the Omaha metro area, 17% are in the Lincoln area, 10% are in Council Bluffs, IA, and the rest operate elsewhere in Nebraska and Iowa.

In other results, 86% of respondents said they had to cancel programs/fundraisers in the last couple of months, and 74% said services to their clients and the community have been disrupted. What’s more, 43% said staff and volunteer absences have become more frequent and of longer duration, and 36% said supplies and services provided by partners have been disrupted. Finally, 11% said the pandemic has put them in a financial crisis, with 27 organizations having applied for Economic Injury Disaster loans and 156 for Paycheck Protection payments.

History has shown that economic downturns typically hit nonprofits immediately, while economic recovery tends to reach the nonprofit community much later than it does for-profit operations. The underlying message of the poll results is that many years of underfunding of vital nonprofit infrastructure and supports means a significant infusion of funds will be needed both in the short- and long-term. The good news from the survey, however, is that the region’s nonprofits have continued to step up to the plate without hesitation to serve their communities, protect public health, and support their own employees.

For more information about the Nonprofit Association of the Midlands, visit www.nonprofitam.org.