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name="MENUTITLEROW_345085" onmouseover="return changeFontColor_NoMenu('MENUTITLEROW_345085','over','ffcc33');" onmouseout="return changeFontColor_NoMenu('MENUTITLEROW_345085','out');"><a style="cursor:pointer;text-decoration:none;" onmouseover="" onmouseout="this.style.textDecoration='none';" href="http://www.jhu.edu/news_info/news/extra/"><span class="Footer_reverse">Hopkins in the News</span></a></div> </td> </tr> </table> </td> </tr> </table> </td> </tr> <tr> <td colspan="2" rowspan="1" style="white-space:normal;"><div style="background-color:#333333;" id="MENUTITLEROW_364033" name="MENUTITLEROW_364033" onmouseover="return changeFontColor_NoMenu('MENUTITLEROW_364033','over','ffcc33');" onmouseout="return changeFontColor_NoMenu('MENUTITLEROW_364033','out');"><a style="cursor:pointer;text-decoration:none;" onmouseover="" onmouseout="this.style.textDecoration='none';" href="http://web.jhu.edu/administration/notgcpa/people/index_people.html"><span class="Normal-Reverse">People</span></a></div> </td> </tr> <tr> <td colspan="2" rowspan="1" style="white-space:normal;"><div style="background-color:#333333;" id="MENUTITLEROW_364035" name="MENUTITLEROW_364035" onmouseover="return changeFontColor_NoMenu('MENUTITLEROW_364035','over','FFCC33');" onmouseout="return changeFontColor_NoMenu('MENUTITLEROW_364035','out');"><a style="cursor:hand;text-decoration:none;" onmouseover="" onmouseout="this.style.textDecoration='none';" href="http://web.jhu.edu/administration/notgcpa/contact_us/contact_us.html"><span class="Normal-Reverse">Contact Us</span></a></div> </td> </tr> </table> <!-- SIDE NAV IS OVER. DEAL WITH IT --> </td></tr> </table></td> <td bgcolor="#ffffff" colspan="3" rowspan="1" style="white-space:normal;" valign="top"> <table border="0" cellpadding="10" cellspacing="0" style="border-style: none;border-width: 0px;" width="740"><tr><td colspan="1" rowspan="1" style="white-space:normal;"><A NAME="Skip"></A> <!--BEGIN CONTENT HERE--> <!--BEGIN CONTENT HERE--> <table border=0 width=740> <tr> <td align=left valign=top> <font size=-1>Office of News and Information<br> Johns Hopkins University<br> 901 South Bond Street, Suite 540<br> Baltimore, Maryland 21231<br> Phone: 443-287-9960 | Fax: 443-287-9920</font><br> </td> <td align=right valign=top> <font size=-1>June 24, 2009<br> FOR IMMEDIATE RELEASE<br> CONTACT: Amy Lunday<br> (443) 287-9960<br> <a href="mailto:acl@jhu.edu"> acl@jhu.edu</a></font><br> </td> </tr> </table><br> <p class=MsoNormal><span style='mso-fareast-font-family:"Times New Roman"'><br> </span><span style='font-size:18.0pt;mso-fareast-font-family:"Times New Roman"'> Perfect Storm of fiscal stress hits nonprofits<o:p></o:p></span></p> <p> <p class=MsoNormal><span style='color:black'>Eighty percent of nonprofit organizations are experiencing fiscal stress </span>according to a survey released today by Johns Hopkins University, and c<span style='color:black'>lose to 40 percent of them reported that this stress was  severe or  very severe. <span style='mso-spacerun:yes'>  </span>Theaters and orchestras were particularly hard hit, with nearly 75 percent of the former and half of the latter reporting  severe or  very severe stress</span>. </p> <p><span style='color:black'>Contributing to this stress has been a perfect storm of impacts including declining revenues (51 percent of organizations); increased costs, particularly for health benefits; declining endowments; and decreased cash flow as a result of restricted credit and government payment delays</span>. </p> <p>The 363 organizations that participated in the survey as part of the <span style='color:black'>Johns Hopkins Nonprofit Listening Post </span>differ widely in size, cover all regions, and represent a diverse array of fields, including children and family services, elderly services and housing, community development, education, arts and culture, and others. </p> <p><span style='color:black'>Despite the dire challenges, more than two-thirds of the organizations indicated that they have been  successful or  very successful in coping with the current fiscal crisis. This is consistent with experience in prior recessions, during which nonprofits boosted employment while for-profit employment declined.<span style='mso-spacerun:yes'>  </span>This suggests that nonprofits are a counter-cyclical force in the economy</span>. </p> <p>&quot;<span style='color:black'>Our nation s nonprofit organizations are displaying exceptional resilience in the face of enormous fiscal challenges, </span> said Lester M. Salamon, director of the Johns Hopkins Center for Civil Society Studies, which conducted this survey as part of its Listening Post Project.  N<span style='color:black'>early three-fourths of the organizations reported being able to maintain or actually increase the number of people they serve, and this was especially true of service to vulnerable populations</span>.&quot; </p> <p><span style='color:black'>To achieve this result, nonprofits have displayed unusual resolve and launched inventive coping strategies:</span> </p> <p style='margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family: Symbol'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span><![endif]><span style='color:black'>Well over half of all organizations have launched new or expanded fund-raising efforts, targeting individuals, state and local government, the federal government and foundations</span>. </p> <p style='margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family: Symbol'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span><![endif]><span style='color:black'>Substantial proportions of organizations are tightening their belts further, cutting administrative costs, creating collaborative relationships with other nonprofits, instituting salary freezes, postponing new hires, and relying more heavily on volunteers</span>. </p> <p style='margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='font-family:Symbol;mso-fareast-font-family:Symbol;mso-bidi-font-family: Symbol'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span><![endif]><span style='color:black'>Substantial numbers are also stepping up their marketing and their advocacy</span>.</p> <p style='margin-left:.5in'><span style='color:black'>Additional findings of this survey included:<o:p></o:p></span></p> <ul style='margin-top:0in' type=disc> <li class=MsoNormal style='color:black;line-height:125%;mso-list:l1 level1 lfo2'>While cultural institutions have been particularly hard hit by the recession, a third or more of child-serving and elderly-serving organizations also reported  severe or  very severe fiscal stress.<o:p></o:p></li> <li class=MsoNormal style='color:black;line-height:125%;mso-list:l1 level1 lfo2'>Beyond the 51 percent of responding organizations that reported declining revenues, a substantial majority also anticipated further revenue declines over the coming months, particularly from private giving and government support.<o:p></o:p></li> <li class=MsoNormal style='line-height:125%;mso-list:l1 level1 lfo2'>Among revenue sources, losses were particularly widespread from individual contributions (losses for 53 percent of organizations), corporate contributions (losses for 44 percent of organizations), and foundation support (losses for 42 percent of organizations).</li> <li class=MsoNormal style='color:black;line-height:125%;mso-list:l1 level1 lfo2'><span style='color:windowtext'>Reflecting their heavier reliance on donations, theaters and orchestras saw the worst revenue losses, with close to 80 percent of the theaters and 70 percent of orchestras reporting losses.</span><o:p></o:p></li> <li class=MsoNormal style='line-height:125%;mso-list:l1 level1 lfo2'>Government support, which plays a larger role than philanthropy in the funding of nonprofits, declined at fewer organizations, but more than a third (35 percent) of organizations experienced declines in this important source of support, as well, and over 40 percent reported delays in government payments. </li> <li class=MsoNormal style='color:black;line-height:125%;mso-list:l1 level1 lfo2'><span style='color:windowtext'>More than half (57 percent) of organizations experienced increased health benefit costs, underlining the importance of health benefit reform for nonprofits.</span><o:p></o:p></li> <li class=MsoNormal style='color:black;line-height:125%;mso-list:l1 level1 lfo2'><span style='color:windowtext'>Nonprofits were also affected by the general collapse of investment asset values. Among the organizations that have endowments, 80 percent reported that they had decreased in value.</span> <o:p></o:p></li> <li class=MsoNormal style='color:black;line-height:125%;mso-list:l1 level1 lfo2'><span style='color:windowtext'>Despite these realities, 73 percent of responding organizations reported being able to maintain or increase the number of people they serve, and for organizations serving vulnerable populations, this figure was even higher (96 percent for organizations serving people with disabilities, 92 percent for organizations serving the economically disadvantaged, 86 percent for organizations serving the elderly, and 82 percent for organizations serving children and youth).</span><o:p></o:p></li> </ul> <p class=MsoNormal style='text-indent:.5in;line-height:125%'><span style='color:black'> The news is mixed, at best, noted Peter Goldberg, president and CEO of the Alliance for Children and Families and chair of the Listening Post Project Steering Committee.<span style='mso-spacerun:yes'>  </span> Resilience in the face of crunching challenges inspires pride in the sector, but also a deep concern about future capacities of nonprofit organizations to fulfill their missions. <o:p></o:p></span></p> <p class=MsoNormal style='text-indent:.5in;line-height:125%'><span style='color:black'><o:p>&nbsp;</o:p></span></p> <p class=MsoNormal style='text-indent:.5in;line-height:125%'>The full text of the report  Impact of the 2007-09 Economic Recession on Nonprofit Organizations is available online at <a href="http://www.ccss.jhu.edu/">http://www.ccss.jhu.edu</a> .</p> <p class=MsoNormal style='text-indent:.5in;line-height:125%'><o:p>&nbsp;</o:p></p> <p class=MsoNormal>&nbsp;<i><span style='font-size:10.0pt;mso-bidi-font-size: 12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Listening Post Project is a collaborative undertaking of the Center for Civil Society Studies at the Johns Hopkins University Institute for Policy Studies, the Alliance for Children and Families, the Alliance for Nonprofit Management, the American Association of Homes and Services for the Aging, the American Association of Museums, Community Action Partnership, the Corporation for National and Community Service, League of American Orchestras, Lutheran Services in America, Michigan Nonprofit Association, the National Council of Nonprofits, and United Neighborhood Centers of America. Its goal is to monitor the health of the nation's nonprofit organizations and assess how nonprofits are responding to important economic and policy changes. For full details on the respondents to the present survey, see the website above.&nbsp; Support for the Listening Post Project has been provided by the Carnegie Corporation of New York, the Bill and Melinda Gates Foundation, the Ewing Marion Kauffman Foundation, the Kresge Foundation, the Charles Stewart Mott Foundation, the Rockefeller Brothers Fund, and the Surdna Foundation.</span></i></p> </td></tr></table></td></tr><tr><td colspan="1" height="27" rowspan="1" style="white-space:normal;" valign="top"><p><img src="http://web.jhu.edu/bin/d/y/bottom_nav.jpg" align="" alt="" border="0" height="27" hspace="0" rolloverenabled="No" rolloverid="" vspace="0" width="160" ></p></td><td bgcolor="#ffffff" colspan="1" rowspan="1" style="white-space:normal;" valign="top" width="577"><p><img src="http://web.jhu.edu/bin/b/r/bottom_body.jpg" align="" alt="" border="0" height="27" hspace="0" rolloverenabled="No" rolloverid="" vspace="0" width="556" ></p></td><td bgcolor="#ffffff" colspan="1" rowspan="1" style="white-space:normal;"></td><td colspan="1" rowspan="1" style="white-space:normal;" valign="top"><p><img src="http://web.jhu.edu/bin/z/t/bottom_right.jpg" align="" alt="" border="0" height="27" hspace="0" rolloverenabled="No" rolloverid="" vspace="0" width="214" ></p></td></tr><tr><td colspan="4" rowspan="1" style="white-space:normal;"><p align="center"><span class="Footer_reverse">Copyright 2009, The Johns Hopkins University</span></p></td></tr><tr><td colspan="4" rowspan="1" style="white-space:normal;"><script type="text/javascript"> var gaJsHost = (("https:" == document.location.protocol) ? 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