The State of the New Jersey Non-Profit Community
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1 The State of the New Jersey Non-Profit Community April 10, 2018
2 About the Center for Non-Profits Advocacy/Public Education Capacity Building Promoting New Jersey s non-profit community Public policy Research (non-profit statistics, trends) Management/compliance assistance Workshops/seminars/Webinars Publications Member Services E-newsletters, resource lists, info/referral Cost saving benefits For 35 years, the champion & go to resource for and about New Jersey s non-profit community
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4 Upcoming events Planning and Financial Management Webinar Series presented by The Nonprofit Finance Fund Member discounts! March May 2018 Workshops: Tax Reform for Non-Profits Non-Profits and Sexual Harassment Member exclusive! May 22, 2018 (details tba)
5 December 6, 2017 Somerset, NJ Annual NJ Non-Profit Conference The don t miss conference for NJ non-profits 500+ non-profit leaders and allies Save the Date! December 5, 2018 Somerset, NJ
6 Thanks to Sally Glick Principal of the Firm and Chief Growth Strategist Jonathan R. Pearson Executive Director Horizon Foundation for New Jersey for supporting New Jersey Non-Profits 2018: Trends and Outlook
7 What we ll cover today: Overview of NJ Non-Profit Community Highlights of 2018 Survey Findings Why this Matters What Can we Do?
8 Non-Profits MATTER Food pantries Afterschool programs Museums Hospitals Environmental protection Disaster relief Education Mental health Public radio Faith-based organizations Philanthropy Drug/alcohol prevention Housing Senior care Human service Social justice Touching every aspect of our lives
9 Non-Profits MATTER 34, (c)(3) orgs in NJ 314,000 employees 9.8% of the state s private work force More than construction, transportation, public utilities, finance and insurance industries $38 billion in expenditures annually 1.6 million volunteers providing $5.3 billion in service Sources: IRS Business Master File of Exempt Organizations; Urban Institute National Center for Charitable Statistics; U.S. Bureau of Labor Statistics; Corporation for National and Community Service; Independent Sector
10 The Survey
11 National and NJ surveys: 2018 NJ Non-Profit Survey: Rising Need 3/4 to 4/5 of survey respondents consistently report rising demand for services. 71% of NJ respondents said demand had risen in This upward trend has been reported by non-profits for numerous consecutive years. 77% projected that demand would continue to rise in Sources: Nonprofit Finance Fund, State of the Sector surveys, 2015 and prior years; Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook survey reports, multiple years
12 Resources Not Keeping Pace Funding Changes 2017 vs 2016 Private foundations 23% 21% 41% Corporate donations 24% 15% 44% Donations from individuals 41% 15% 36% Fees for service 29% 7% 28% Membership Dues 10% 5% 19% Investment Income 24% 3% 26% Special Events 33% 15% 30% Planned Giving 10% 4% 24% Endowment 6% 2% 20% United Way 1% 9% 11% Federal government 10% 9% 26% State government 14% 10% 32% County government 13% 9% 20% Local government 4% 10% 17% Bus. Ventures/Commercial Activity 6% 3% 17% Other 6% 2% 21% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increase Decrease No significant change % responses reporting funding change per category (N=199) Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2018
13 Resources Not Keeping Pace Two-fifths (42%) of 2018 survey respondents reported funding increases in the previous fiscal year but 56% reported that expenses had increased in the same period... Source: Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2018
14 Resources Not Keeping Pace and only 28% reported that support and revenue had exceeded expenses in their last fiscal year. Source: Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2018
15 Resources Not Keeping Pace Nearly two-thirds (64%) of 2018 survey respondents predicted that expenses would increase in 2018 but only 48% expected that overall funding would increase. Source: Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2018
16 NJ Non- Profits Top Issues (2018) Top issues affecting individual organization viability (aside from funding) need for better branding or communications (53%) financial uncertainty (51%) need for a stronger board (45%) increased benefits/ insurance costs (36%) inability to afford enough good staff (31%) increased demand for program services (28%) need to increase advocacy/public policy (28%)
17 Top issues affecting non-profit sector viability in the coming decade NJ Non- Profits Top Issues (2018) non-profit infrastructure/capacity building (51%) foundation/corporate funding (46%) attracting/retaining capable, committed board members (46%) state fiscal policy/budget (33%) giving and volunteering incentives (32%) federal funding/federal budget (31%) non-profit advocacy/lobbying rights (30%) diversity/inclusion/equity within non-profits (28%)
18 Other Issues (2018) Other Observations by Respondents Uncertainty and concern about the new federal tax law and its impact on charitable giving, the state s nonprofits, and New Jersey in general Need to increase government funding to sufficiently cover the costs of providing contracted services Need for increased funding to cover the projected costs of proposed employment law changes (e.g., minimum wage and others) Challenges in serving immigrants who may be reluctant to seek services
19 Other Observations by Respondents Other Issues (2018) Continued concern about funding for social programs serving vulnerable people Opportunities for partnerships across non-profits, for-profits and government Importance of leadership development, succession planning, and infrastructure Heightened civic engagement
20 Seeking new/alternative revenues Increasing volunteer recruitment Actions Non-Profits are Taking Increasing advocacy New & more collaborations Program adjustments Budget adjustments Special events Sharing services
21 Overall circumstances compared with one year ago Overall, would you describe your organization s circumstances as better, worse, or no different than the same time a year ago? Response Better 53% 48% 49% 57% 58% 43% 38% 32% 30% 31% 51% Worse 14% 15% 15% 13% 12% 22% 23% 29% 36% 34% 15% No different 34% 37% 36% 31% 30% 35% 40% 38% 34% 36% 35% Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook,
22 Predictions for the coming year ( ) Overall, one year from now, do you think your organization s circumstances will be better, worse or no different than they are currently? Response Better 44% 53% 57% 64% 62% 46% 44% 45% 43% 41% 68% Worse 9% 10% 9% 6% 3% 7% 8% 10% 14% 33% 8% No different 12% 9% 6% 7% 11% 15% 16% 11% 9% 26% 24% Unknown/Too early to tell 35% 28% 28% 23% 25% 32% 32% 34% 34% n/a n/a Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, How have past predictions panned out from year to year?
23 Source: Center for Non-Profits, NJ Non- Profit Issues/Trends surveys,
24 TAX REFORM April 12,
25 WHY DOES THIS MATTER?
26 NEEDS a strong non-profit community
27 Resource Squeeze CAPACITY GAP
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32 What can we do?
33 SPEAK OUT 33
34 Improve Understanding About Non-Profits Tell the Story 34
35 Strengthen Government/ Non-Profit Partnerships Strengthen Gov t/ Non-Profit Partnerships Education about non-profits Reduce bureaucracy Contract Reform Increase dialogue with government officials Joint problem-solving
36 Improve the Fundraising / Operating Climate for Non-Profits What can we do? Streamline laws/regulations Strengthen charitable giving incentives
37 What else can we do?
38 Stay informed/educated Invest in advocacy Diversify revenue streams What can we do? Look for program efficiencies Collaborate CHANGE THE DIALOG with funders Support real cost funding Invest in capacity building, leadership development Keep communications flowing
39 Stand Together
40 MEMBERSHIP is a sound investment in your organization and in New Jersey's non-profit community. Benefits include: The Center as your non-profit advocate Exclusive learning and networking opportunities FREE job postings Priority access to our HelpDesk experts Access to savings worth thousands of dollars 30% OFF registration for the 2018 NJ Non-Profit Conference (Dec. 5, 2018) And much more!
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42 Join our LIST Stay
43 THANK YOU! Linda M. Czipo President & CEO Center for Non-Profits Phone: 732/ Web: Blog:
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