Phoenix, AZ - (February 1, 2010) - The Alliance of Arizona Nonprofits released the results of its statewide survey about the impact of the recession on nonprofits, and it shows that organizations suffered significant losses of revenues in 2009, while at the same time 80% of nonprofits saw rising demand for their services.

“Nonprofits are on the front lines of helping families and communities cope with the effects of the Great Recession in Arizona,” said Patrick McWhortor, President & CEO of the Alliance. “But their ability to meet these pressing demands are compromised by revenue losses in every major category.”

Six out of ten nonprofits reported a loss of revenues in 2009. The total average decrease in their income was 22.3%. Of all sources of funding for nonprofits, government funding dropped the most, down by 25%. This is expected to continue in 2010, as state and local governments slash programs and services that are provided through contracts with nonprofits as service providers.

One positive sign of the resilience of these community based organizations was the fact that fewer nonprofit employees were laid off in 2009 than leaders had expected in response to an early 2009 survey. Based upon an extrapolation from the survey population, the Alliance estimates that no more than 3,500 nonprofit employees were given pink slips in 2009. That is a lower ratio than private sector job losses. However, some employees had hours reduced or were required to take furlough days in 2009.

“We believe that nonprofits are a harbor of job retention in the Arizona economy, compared to many of our for-profit colleagues,” McWhortor commented. “Nonprofit leaders have trimmed non-essential expenses, but have tried to keep people employed so they can continue providing their core services in this hour of need in the community. They have shown an amazing resilience, considering the scale of cuts.”

Other findings from the December 2009 survey:

     64% of organizations reduced their 2010 budgets to respond to cuts;

     One half of nonprofits had to tap reserves in 2009 to maintain operations;

     Only 13% of nonprofits took on debt in 2009;

     25% of nonprofits experienced late payments on contracts, such as contracts with government agencies;

     22% of organizations are exploring or considering mergers or joint ventures with other nonprofits.

The Alliance conducted the statewide survey of its nonprofit membership in December. The respondents largely mirror the diversity of the sector, in terms of the types of services provided by organizations, the size of organizations and their locations around the state. Therefore, the Alliance believes the results are largely reflective of the nonprofit sector as a whole.

A full copy of the report, Community Cornerstones: Arizona Nonprofits Ride Out the Economic Storm, is available on the Alliance website.

The Alliance of Arizona Nonprofits is a statewide nonprofit membership organization of, by and for Arizona’s nonprofits with a mission to enhance the well-being of the people and communities in the state by serving, supporting, protecting and promoting Arizona’s nonprofits.  We have more than 450 members from every corner of Arizona. For more information, visit www.ArizonaNonprofits.org.