The Impact of the COVID-19 pandemic on nonprofit organizations

REGIONALS

The impact of the COVID-19 pandemic on nonprofit organizations

The impact of the COVID-19 pandemic on nonprofit organizations BUTLER COUNTY 2020-2021

IN COLLABORATION WITH

PUBLICATION DATE: MARCH 2022

This report is a summary of the data collected from the COVID-19 Nonprofit Impact Report conducted from November through December 2021. The contents are property of Miami University Regionals and the Center for Social Impact.

CENTER FOR SOCIAL IMPACT

Miami University Regionals Hamilton: Mosler Hall 105 Hamilton, OH 45011 Middletown: Johnston Hall 100 Middletown, OH 45042 513-785-3005 csi@MiamiOH.edu MiamiOH.edu/Regionals/CSI

REPORT PREPARED BY:

John Cinnamon, Ph.D. Associate Professor Anthropology & Social & Behavioral Sciences Theresa Ervin Conover, Ph.D. Associate Professor Justice & Community Studies John Forren, Ph.D. Chair & Associate Professor Justice & Community Studies Ziying Jiang, Ph.D. Associate Professor Geography & Social & Behavioral Sciences Darrel Helm Undergraduate Student Researcher

Kara Love Regional Coordinator for Service Learning and Volunteerism Center for Social Impact Collette Loskoch Thompson Regional Director Center for Social Impact

The following students from NCS 202: Introduction to Nonprofits and NGOs assisted with collecting and updating contact information for the nonprofits surveyed: Jennifer Alba, Kate Broderick, Jiaxi Chen, Jesseca Crosen, Lisa Engel, Darrel Helm, Xinli Li, Chufei Liu, Brandon Williams.

Acknowledgment We are grateful to Mary Cannon, directordirector of AmeriCorps for ServeOhio; Beaton, Ph.D., We are grateful to Mary Cannon, of AmeriCorps forErin ServeOhio; Erin of Ohio State University; Jeff Diver, executive director of Supports Encourage Low Income Families; Sara Gabbard, Beaton, Ph.D., of Ohio State University; JefftoDiver, executive director of Supports to Encourage Income Gabbard, director of EDGE Teen executive director Low of EDGE TeenFamilies; Center; theSara students of NCSexecutive 202: Introduction to Nonprofits Center; the students of NCS 202: Introduction to Nonprofits and NGOs; our many and NGOs; our many colleagues at Miami who have guided us through our internal processes; colleagues at Miami team; who have guided usleaders through internaltoprocesses; our Regionals marketing and the nonprofit whoour responded our survey. our

Regionals marketing team; and the nonprofit leaders who responded to our survey.

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Miami University's Land Acknowledgement Miami University is located within the traditional homelands of the Myaamia and Shawnee people, who along with other indigenous groups ceded these lands to the United States in the first Treaty of Greenville in 1795. The Miami people, whose name our university carries, were forcibly removed from these homelands in 1846.

In 1972, a relationship between Miami University and the Miami Tribe of Oklahoma began and evolved into a reciprocal partnership, including the creation of the Myaamia Center at Miami University in 2001. The work of the Myaamia Center serves the Miami Tribe community and is dedicated to the revitalization of Miami language and culture and to restoring that knowledge to the Myaamia people.

Miami University and the Miami Tribe are proud of this work and of the more than 140 Myaamia students who have attended Miami since 1991 through the Myaamia Heritage Award Program.

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Dear community, As the new Vice President and Dean of Miami University Regionals since July 2021, I’ve found plenty of reasons to be proud of and energized by what our campuses are doing within the community. This report on the COVID-19 Impact on Butler County Nonprofits is one of them.

Inspired by the vision at Regionals, [begin yellow highlight] Empowering Minds, Strengthening Communities, [end yellow highlight] Inspired by the vision at Regionals, “Empowering Minds, Strengthening Communities,” and knowing and knowing the implications of the pandemic would be long lasting, the leadership team at our Center for Social Impact the implications the pandemic wouldengagement be long lasting, the leadership team at our Center forwhat Social knew we would need of to reassess our community efforts to better serve local organizations.

However, wasn t known wasknew the true of need the pandemic on these Putting our vision efforts into action, assembled an interdisciplinary Impact weimpact would to reassess ourorganizations. community engagement to they better serve local team of faculty, staff, and students to embark on the mission of gaining a better understanding of the impact of COVID-19 organizations. However, what wasn’t known was the true impact of the pandemic on these on the nonprofit community in Butler County.

organizations. Putting our vision into action, they assembled an interdisciplinary team of faculty, staff, and students to embark on the mission of gaining a better understanding of the impact of COVID-19 on the nonprofit community in Butler County.

While there has been a wide range of research on this subject both in Ohio, as well as nationally, over the past two years, there has not been research conducted at the local level. All of Miami’s campuses are uniquely located in Butler County, making it our home. Because of this, our research team wanted to know specifically how COVID-19 has, is, and will continue to impact our efforts to collectively build a strong community. Their intention was to use this research to determine how best our university can serve the community as a regional steward. What we have found is that while the challenges have been plentiful, the hope and optimism for the future is abundant and bright.

As you read this report, I invite you to not only consider it as a resource for better understanding the effects of the virus on our nonprofits and the people they serve but as a call to action. Everyone in our community, young and old, unskilled and experienced, has a role to play in ensuring that the social and economic fabric of Butler County continues to thrive and become even more connected than in our pre-pandemic days.

With love and honor,

Ande Durojaiye, Ed.D. Vice President and Dean, Miami University Regionals

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The Impact of the COVID-19 Pandemic on Nonprofit Organizations in Butler County, Ohio

1. INTRODUCTION This report is devoted to studying the impact of COVID-19 the nonprofit serving Butler County.

The project This report is devoted to studying the impact ofon COVID-19 on community the nonprofit community serving Butlerexamines County. the Thecurrent state of capacity in the nonprofit community and what is needed to build capacity to serve clients effectively today and in the future. The project examines the current state of capacity in the nonprofit community and what is needed to build capacity to data from this study will be shared with government officials, policymakers, funders, and the general public to help make decisions that will serve impact theclients sector'seffectively recovery. today and in the future. The data from this study will be shared with government officials,

policymakers, funders, and the general public to help make decisions that will impact the sector's recovery.

Purpose of the Study Thearrival arrivalofofCOVID-19 COVID-19 to to the theUnited UnitedStates StatesininMarch March 2020 2020wreaked wreakedhavoc havocacross acrossall allaspects aspects of oflife. life.Nonprofit Nonprofitorganizations The organizations people serve were notstudy immune. not the first to examine thehas effects COVID and the people and theythe serve werethey not immune.

This is notThis the study first toisexamine the effects COVID had nonprofit organizations; there there have been manymany conducted acrossacross the United StatesStates and Ohio.

The results hason had on nonprofit organizations; have been conducted the United and Ohio.

The add toresults our knowledge our local communities; in this instance, howinstance, the pandemic haspandemic impacted has nonprofit organizations add to ourofknowledge of our local communities; in this how the impacted nonprofit serving Butler County. survey was conducted withconducted funding provided

by ServeOhio; are reported organizations serving AButler County.

A survey was with funding providedthe byresults ServeOhio; the results are below. reported below.

Understanding the impact of COVID-19 on the nonprofit sector has resulted in a growing amount of research in the U.S. The Understanding the impact of COVID-19 on the nonprofit sector has resulted in a growing amount of research in the present study follows the line of inquiry that has focused on the national (Urban Institute, 2021; Dumont, 2021) and state U.S. The present study follows the line of inquiry that has focused on the national (Urban Institute, 2021; Dumont, levels, including Ohio (Beaton, E. E., 2020; Beaton, E. E., Colchin, E., & Ma, Y., 2020; Beaton, E. E., Colchin, E., Ma, 2021) and state levels, including Ohio (Beaton, E. E., 2020; Beaton, E. E., Colchin, E., & Ma, Y., 2020; Beaton, E. E., Y., Bhati, A., 2021). However, our singular focus is on Butler County, located in southwestern Ohio.

Colchin, E., Ma, Y., Bhati, A., 2021). However, our singular focus is on Butler County, located in southwestern Ohio.

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Data and Methodology Data for this survey was obtained from the registered charities database from the Ohio Attorney General’s Office for nonprofit organizations in Butler, Warren, Preble, and Hamilton counties at the onset. Due to the massive number of organizations, we pared down eligible organizations to those that met our inclusion criteria of serving Butler County. The results are based on the responses from the nonprofits who completed our survey. The findings may not be representative of all nonprofits serving Butler County.

The survey instrument and accompanying documentation LevelExemption 1 Humanfrom Subjects The survey instrument and accompanying documentation received Level received 1 Human Subjects Miami University's Research Ethics & Integrity Office.

Exemption from Miami University's Research Ethics & Integrity Office.

Respondents received anan email with a personalized survey link accessible from November 8 to December 15,15,2021.

Respondents received email with a personalized survey link accessible from November 8 to December 2021.As an incentive for participation, each organization was eligible to enter a raffle.

Several follow-up methods were used to increase As an incentive for participation, each organization was eligible to enter a raffle. Several follow-up methods were response these included reminder call notices, reminders, and call personalized to encourage non- to used to rates; increase response rates; these notices, includedphone reminder phone reminders,emails and personalized emails and partial-completers finish the survey.to finish the survey. encourage non- and to partial-completers In In total, 164 nonprofit organizations that serve Butler County responded to the survey.

Of Of thethe total responses, 71.2 percent total, 164 nonprofit organizations that serve Butler County responded to the survey. total responses, 71.2 ofpercent the respondents maintainedmaintained an office inan theoffice county.

Thecounty. description of the findings includes organization of the respondents in the The description of the findings includes size, types of organization services and size, programming, number of annual clients served, financials, and innovation in addressing due types of services and programming, number of annual clients served, financials, anddisruption innovation to in pandemic. addressing disruption due to pandemic.

Snapshot of Nonprofits Serving Butler County, Ohio 164organizations organizations serving Butler County participated in the research survey; 71.2percent percent these nonprofits In In all,all, 164 serving Butler County participated in the research survey; 71.2 ofof these nonprofits were also were(e.g., also based (e.g.,an maintained an office) based maintained office) in the county.in the county.

NON-PROFIT ORGANIZATIONS SERVING BUTLER COUNTY, OHIO BY SERVICE SECTOR

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Sectors The five largest sectors serving Butler County represented in our survey results include human services (19.2 percent); youth services (18.5 percent); other (16.2 percent); education (13.1 percent); and arts, culture, and humanities (11.5 percent).

WHICH OF THE FOLLOWING SUBSECTORS BEST REPRESENT YOUR NONPROFIT ORGANIZATION’S PRIMARY MISSION AND PROGRAMMATIC FOCUS? PrimaryMission

Primary Mission

Frequency

Percent

Frequency

Human (i.e., housing/shelter, food, employment, 25 Human services services (i.e., housing/shelter, food, employment, etc.) etc.)

Youth 24 Youthservices services Other 21 Other Education 17 Education Arts, andhumanities humanities 15 Arts,culture, culture, and Other (other than thanhospitals) hospitals) 9 Otherhealth health (other Religion 6 Religion Other mutual, public, and societal benefit (i.e., civil rights Other mutual, public, and societal benefit (i.e., civil rights and5 and community development, advocacy groups, neighborhood community development, advocacy groups, neighborhood associations, etc.) associations, etc.)

Environment 3 Environment Animalwelfare welfare Animal 2 Community foundation 2 Community foundation Hospitals Hospitals 1 Total Total 130

Percent

25 19.2

19.2

24 18.5 21 16.2

18.5

17 13.1 15 11.5 9 6.9 6 4.6 5 3.8

3 2.3 2 1.5 2 1.5 1 0.8 130 100.0

16.2 13.1 11.5 6.9 4.6 3.8

2.3 1.5 1.5 0.8 100.0

Populations Served Overall, the largest populations served through responding nonprofit programs and activities include children/adolescents/youth (43.9 percent), families (37.8 percent), general population (37.2 percent), racial or ethnic minority groups (21.3 percent), and those who are disabled or have special needs (20.1 percent). Across all categories, the percentage of nonprofits that indicated they served economically disadvantaged populations was 65 percent.

Ot he Un r m e m ig pl ra o nt ye so d rr ef ug ee s Im

Ch il d re n/

ad ol es ce nt s/

yo ut h Ra Ge ci Fa al m n er or ilie al et s po hn pu ic la m tio in Di or n sa ity bl gr ed o /s up pe s cia ln ee ds Se nio rs W om en LG BT Q +

50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0%

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Number of Unique Clients Served

Annual Revenue for Organization (last fiscal year)

Size of Nonprofit Organizations NUMBER OF EMPLOYEES AND VOLUNTEERS Nov 2021

None

1 to 15

Nov 2021

None

Full-time employees (FTE)

21.6%

Part-time, paid employees

19.7%

Volunteers

0.9%

45.6%

1 to 15

16 to 100

Over 100

16-100

Over 100

55.7%

12.5%

10.2%

64.5%

10.5%

5.3%

38.6%

14.9%

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2. THE IMPACT OF COVID-19 ON NONPROFITS' DELIVERY OF SERVICES AND PROGRAMS

The survey suggests that at a macro level, the impact of the COVID-19 pandemic has been far from uniform within the local nonprofit sector. Regarding Butler County nonprofits' overall ability to deliver services and programs, 30 percent indicate they provide their services the "same as we always do." In comparison, 26 percent report a marked increase in their program and service delivery operations. However, 42 percent report they have reduced their capacity compared to “usual” operations, and about 1 in 8 (12 percent) are now operating at a "severely reduced capacity” compared to pre-pandemic norms.

TO WHAT EXTENT ARE YOU CURRENTLY DELIVERING YOUR PROGRAMS AND/OR SERVICES? (SELECT ONE)

26.2% 26.2%

30.2% 30.2%

30.2% 30.2%

To a greater extent than usual

Same as we always do

In a moderately reduced capacity

12.1% 12.1% In a severely reduced capacity

0.7% 0.7%

0.7% 0.7 %

Not at all

Not applicable

Sources of Funding When asked about the most important funding sources, nearly three-fourths of nonprofits indicated individual donations were very important; foundation grants and business donations came in second and third, 46.6 percent and 41.4 percent, respectively.

HOW IMPORTANT ARE THE FOLLOWING SOURCES OF REVENUE TO YOUR ORGANIZATION?

IMPACT ON PERSONNEL LEVELS Change from March 2020 to November 2021 Decreased

No Change

Increased

Part-time employee

14.0%

75.6%

10.4%

Full-time employee

14.6%

75.0%

10.4%

Volunteer

37.2%

48.2%

14.6%

Personnel

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SINCE THE BEGINNING OF THE PANDEMIC (MARCH 2020), HOW HAVE THE FOLLOWING SOURCES OF INCOME CHANGED FOR YOUR ORGANIZATION? Individual donations Government grants or contracts

38.30% 13.70%

18.30%

Business/corporate donations Foundation grants Membership dues

Investment income Other

19.10%

37.10% 17.40% 13.70%

Earned Income Grants from donor advised funds

25.60%

22%

2% 6.10% 6.10% 2%

12.90% 19.70%

0.80%

1.50%

25% 31.80%

67.20%

5.30% 8.30%

32.10% 20.20%

9%

48.10%

24.20%

18.90%

15.30% 11.60%

0.80%

29.50% 13.70%

27.10%

50.80% 7.60%

2.30%

8.50% 0.80%

42.70% 58.90%

83.70%

Changes in Delivery of Services and Programming Similar service delivery, here, too, wewe find broad variability of impact.

Just over halfhalf 51 (51 percent) Similartotothe themethods methodsofofnonprofit nonprofit service delivery, here, too, find broad variability of impact.

Just over report no significant change in how theyinprovide services to services their clients/constituencies.

However, 43However, percent say percent) report no significant change how they provide to their clients/constituencies.

43 they are delivering services differently than before, and another 6 percent say they are now offering their services percent say they are delivering services differently than before, and another 6 percent say they are now offeringremotely. their services remotely.

Of their services differently, thethe qualitative responses indicate a pivot Ofthe theagencies agenciesthat thatindicated indicatedthey theywere weredelivering delivering their services differently, qualitative responses indicate a from face-to-face operations.

Most frequently mentioned were remote delivery, video conferencing, virtual, and phone. pivot from face-to-face operations. Most frequently mentioned were remote delivery, video conferencing, virtual, Other changes in the delivery services a switch to delivery (including drive-thru distribution among food and phone.

Other changes in of the deliveryinclude of services include a switch to delivery (including drive-thru distribution pantry amongproviders). food pantry providers).

AAkey thethe ability to deliver services may lie lie in the significant numbers of nonprofits thatthat report theirtheir clients keyfactor factoraffecting affecting ability to deliver services may in the significant numbers of nonprofits report have experienced challenges of their own in accessing their services and programs; just overjust one-half (53.8 percent) clients have experienced challenges of their own in accessing their services and programs; over one-half (53.8 ofpercent) organizations said that this is a problem. of organizations said that this is a problem. /

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During peak periods of the pandemic and prior to vaccine availability for the developmental disabilities community, many programs were closed or operating at reduced capacity. Even with services more available, transportation, and other support providers are now experiencing staffing shortages coming out of the pandemic so access can be challenging for our population.

— HUMAN SERVICE ORGANIZATION

Common themes emerged from respondent s comments and included cancellations due to closed venues; Common themes emerged from respondent’s comments andevent included event cancellations due to COVID closedprotocol venues;meeting restrictions (masking, social distancing resulting in reduced capacity); issues with staffing and fewer volunteers; matters related to COVID protocol meeting restrictions (masking, social distancing resulting in reduced capacity); issues with staffing technology (clients without internet, organizational lack of technology); lack of transportation options for clients; and the generalized fear and fewer volunteers; matters related to technology (clients without internet, organizational lack of technology); of contracting COVID, especially those serving elderly clients. Lastly, many organizations referred to a mental health crisis for their clients, lack of transportation options clients; generalized fear of contracting COVID, especially those serving which is impacting their ability to helpfor their clientsand fromthe many common comments.

elderly clients. Lastly, many organizations referred to a mental health crisis for their clients, which is impacting their ability to help their clients from many common comments.

Early on, there were challenges ensuring devices/internet access/teaching tech.

Now the bigger and long-term effect is that many of the mental health services we connect youth and families to (especially the intensive, in-home-based models) do not have adequate staffing, resulting in programs not taking new clients or waitlists that are two-three months long.

— YOUTH SERVICES ORGANIZATION

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3. NONPROFIT RESPONSES TO THE PANDEMIC Following thethe adage when one one door door closes,closes, anotheranother opens, opens,” the impact COVID has had a two-fold effect on organizations Following adage “when theof impact of COVID has had a two-fold effect serving on Butler County. While one consequence (door closing) is focused on the contraction of resources, the other (door opening) adapts organizations serving Butler County. While one consequence (door closing) is focused on the contraction of to new opportunities to address the needs within the community.

resources, the other (door opening) adapts to new opportunities to address the needs within the community.

The survey asked respondents to identify specific actions that they have taken during the pandemic. The following table displays the results.

SINCE THE BEGINNING OF THE PANDEMIC (MARCH 2020), WHICH OF THE FOLLOWING ACTIONS HAS YOUR ORGANIZATION TAKEN?

Personnel

Pct

Transitioned employees to work from home Transitioned employees to work from home Restricted travel Restricted travel Restricted professionaldevelopment developmentofofstaff staff Restricted professional Reduced or furloughed furloughedstaff staff Reduced or Froze Froze hiring hiring Created Created aa virtual virtual volunteer volunteer program program Cut Cut wages wages

53.1%

Pct

53.1% 39.4% 36.3% 34.1% 23.5% 13.9% 9.8%

39.4% 36.3% 34.1% 23.5% 13.9% 9.8%

Funding/Revenue

Pct Pct

Sought new sources of funding (including grants, donations, earned income) Sought new sources of funding (including grants, donations, earned income) Made specialappeal appealtotodonors donors Made aa special Held a virtual or online fundraising event Held a virtual or online fundraising event Drew on reserves Drew on reserves Changed internal and/or and/or financial financial controls controls Changed internal Applied for the Federal Economic InjuryDisaster DisasterLoan Loan Advance Applied for the Federal Economic Injury Advance Asked funders or sought legal permission to remove restrictions from donated funds Asked funders or sought legal permission to remove restrictions from donated funds Increased the draw on endowment Increased the draw on endowment

61.3% 61.3% 43.1% 43.1% 35.0% 35.0% 33.6% 33.6% 23.4% 23.4% 14.7% 14.7% 12.4% 12.4% 5.2% 5.2%

Operations

Pct Pct

Conducted board meetings virtually Conducted board meetings virtually Cut Cutother otheradministrative administrativeexpenses expenses Created new that you you did did not not have have before before Created neworganizational organizational partnerships partnerships that Shut down operations indefinitely Shut down operations indefinitely Merged Mergedwith withanother another organization organization

83.9% 83.9% 36.8% 36.8% 33.3% 33.3% 11.8% 11.8% 2.2%2.2%

Operational Adaptation (includes only those nonprofits who indicated they were adapting Pct Pct (includes only those nonprofits who indicated they were adapting their programs or services) their programs or services) Planned new program and/or service offerings you did not offer before 54.0% 54.0% Planned new program and/or service offerings you did not offer before Added new new program programand/or and/or service serviceofferings offeringsyou youdid didnot notoffer offerbefore before 49.6% 49.6% Added Discontinuedprogram programand/or and/orservice serviceofferings offeringsyou youoffered offeredbefore before 39.7% 39.7% Discontinued 33.6% Planned and/or services servicesto topopulations populationsyou youdid didnot notserve servebefore before 33.6% Planned to to provide provide programs programs and/or Provided and/orservices servicestoto populations serve before 29.9% Provided programs programs and/or populations youyou diddid notnot serve before 29.9% 19.7% Planned offeredbefore before 19.7% Planned to to discontinue discontinue program program and/or and/or service service offerings you oered

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Now that video conference capabilities are more widely accepted, we expanded the footprint for the services that we offer.

— HEALTH ORGANIZATION

In with their boards, nearly 8484 percent of respondents indicated they Inefforts effortstotocontinue continueoperations operationsand andcommunication communication with their boards, nearly percent of respondents indicated conducted their board meetings virtually.

DuringDuring this time, between leaders leaders and their boards they conducted their board meetings virtually. thiscommunication time, communication between and their was boards critically essential to navigate an uncertain environment.

Other organizations reported extending virtual options was critically essential to navigate an uncertain environment. Other organizations reported extending virtual even more broadly. options even more broadly.

First, tooktook different approaches to adapt totothe pandemic, cutting expenses,cutting shifting expenses, fundraising efforts, and discontinuing First,organizations organizations different approaches adapt to theincluding pandemic, including shifting some programming. Those items cut included travel restrictions (39.4 percent), administrative expenses (36.8 percent), professional fundraising efforts, and discontinuing some programming. Those items cut included travel restrictions (39.4 development of staff (36.3 percent), and reductions or furlough of staff (34.1 percent). Efforts to address funding included seeking percent), expenses (36.8 percent), professional development ofvirtual staff or (36.3 percent), and reductions new sourcesadministrative (61.3 percent), making special appeals to donors (43.1 percent), and pivoting to online fundraising events or furlough (35.0 percent).of staff (34.1 percent). Efforts to address funding included seeking new sources (61.3 percent), making

special appeals to donors (43.1 percent), and pivoting to virtual or online fundraising events (35.0 percent).

Nearly percent of those surveyed indicated they discontinued programs andprograms services since beginning of the Interestingly, Nearly4040 percent of those surveyed indicated they discontinued andthe services since thepandemic. beginning of the some nonprofits started up new programs or expanded to reach new service populations. Second, organizations added or planned pandemic. Interestingly, some nonprofits started up new programs or expanded to reach new service populations. new additions to their program and service repertoire. Further, new organizational partnerships were created, and new populations Second, added or planned new additions their program service repertoire.

Further, new were beingorganizations served. A significant number of organizations reported to expanding services and to youth, which they had not done prior organizational to the pandemic. partnerships were created, and new populations were being served. A significant number of

organizations reported expanding services to youth, which they had not done prior to the pandemic.

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Interestingly, despite concern and the challenges nonprofits continue to confront since the beginning of the pandemic, nearly 8 of 10 leaders are optimistic in their 12-month outlook on serving clients.

WHICH WORD BEST DESCRIBES YOUR OUTLOOK ON SERVING CLIENTS OVER THE NEXT 12 MONTHS?

(We are) adding youth offerings because they are struggling with the pandemic more than most age groups.

— RELIGOUS ORGANIZATION /

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4. THE CHALLENGES AHEAD: GROUP LEADERS' PERCEPTIONS OF THE FUTURE OF THE LOCAL NONPROFIT SECTOR

Next, the survey explored the extent to which local nonprofits plan to retain pandemic-driven changes to operations (i.e., a new normal). The central theme, looking forward, is that there is still a lot of uncertainty about the future in the eyes of nonprofit leaders.

At least in some areas, though, we can expect to see significant impacts on the sector well into the future: First, the pandemic drives some positive developments, including greater attention to controlling administrative costs and maintaining strong financial and accounting controls. Second, there is continued emphasis on expanding funding bases, and lastly, there is a continued focus on building partnerships with other organizations, creating more synergy.

At the same time, there is not a broad appetite to pare back services or operations or consolidate the sector into a smaller number of organizations. Here, the central theme is that many nonprofit leaders view pandemic-related cutbacks on services, personnel, and others as transient/temporary – but a great deal of uncertainty about capacity and resources about the future exists. They want to get back to work much as before – just worried about how to do that.

The respondents to The survey survey asked asked respondents to estimate estimate their theirlevel levelof ofconcern concernabout aboutaarange rangeofofpossible possiblebarriers barrierstotoeffective effectiveservice delivery in the year ahead; responses are provided in the following table. service delivery in the yeartheir ahead; their responses are provided in the following table.

LOOKING AHEAD TOWARD THE NEXT 12 MONTHS, HOW CONCERNED ARE YOU ABOUT THE FOLLOWING?

Not applicable

Very concerned

Somewhat concerned

Not important

Wellbeing of employees, volunteers, or members

19.0%

52.6%

21.9%

6.6%

Loss of revenue

32.6%

37.0%

21.7%

8.7%

Decline in donations

25.4%

43.5%

20.3%

10.9%

Loss of volunteers

30.1%

36.8%

19.9%

13.2%

22.5%

42.0%

25.4%

10.1%

Disruption of services to clients or communities

15.2%

44.2%

29.7%

10.9%

Increased demand for services

21.5%

36.3%

32.6%

9.6%

Disruption of supplies or services provided by partners

19.0%

37.2%

24.8%

19.0%

19.7%

30.7%

18.2%

31.4%

Loss of fee-for-service revenues due to event/program cancellations

13.1%

35.8%

18.2%

32.8%

Delayed grant processing for a program/general operating support

8.7%

31.2%

27.5%

32.6%

Having to shut down operations indefinitely

9.4%

23.7%

54.0%

12.9%

Having to lay off employees

7.4%

21.0%

65.4%

6.2%

Government contracts or grants that cannot get reimbursed

6.5%

13.8%

32.6%

47.1%

Inability to pay rent or mortgage

5.8%

11.7%

42.3%

40.1%

Ability to provide needed personal protective equipment (PPE) to employees

2.2%

13.1%

52.6%

32.1%

Issue

Increased absences Increasedstaff staffor orvolunteer volunteer absences

Inability to hire staff or maintain needed staffing levels Inability to hire staff or maintain needed staffing levels

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A sizable percentage see an existential threat as one-third of respondents said they were very or somewhat concerned about A sizable percentage see an existential threat as one-third of respondents said they were very or somewhat having to shut down indefinitely within the next 12 months. Nonprofit leaders are apprehensive about the loss of concerned about “having to shut down indefinitely” within the next 12 months. Nonprofit leaders are apprehensive necessary resources, including funding, donations, delays in grant processing, and the loss of fee-for-service revenue. Nonprof about the loss of necessary resources, including funding, donations, delays in grant processing, and the loss of are concerned with the potential loss and absences of staff and volunteers who are critical to the successful operation fee-for-service revenue. Nonprofits are concerned with the potential loss and absences of staff and volunteers who of the agencies' delivery of programs and services. are critical to the successful operation of the agencies' delivery of programs and services.

Staffing ourbiggest biggest challenge the continuation of all Staffing remains remains our challenge in the in continuation of all services.

— HEALTH ORGANIZATION services. HEALTH ORGANIZATION

Leadership is especially worried about increased demands for service and the mismatch between capacity and demand.

Leadership is especially worried about increased demands for service and the mismatch between capacity and While demand for services and programming increases, they are limited in hiring the needed staff to accommodate demand. While demand for services and programming increases, they are limited in hiring the needed staff to the demand. Especially telling is that 70 percent were worried about the well-being of their employees, accommodate the demand. Especially telling is that 70 percent were worried about the well-being of their volunteers, and members. The pandemic has created a delicate balancing act, and nonprofits are concerned employees, volunteers, and members. The pandemic has created a delicate balancing act, and nonprofits are about these impacts disrupting their service delivery. concerned about these impacts disrupting their service delivery.

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5. THE CURRENT NEEDS OF THE LOCAL NONPROFIT SECTOR

After weathering the ebb and flow of the COVID-19 pandemic, nonprofits are setting their sights toward the future to address their organizational missions. The local nonprofit sector has significant needs that may have been exacerbated or created due to the pandemic.

WHICH PROFESSIONAL SERVICES ARE YOU LIKELY TO NEED OVER THE NEXT YEAR?

Fundraising

43.0%

Marketing and design 35.8% Website development 27.9% Strategic planning 27.3% IT 20.6% Facilities management 18.2% Program evaluation 17.6% CPA/bookkeeping 15.8% HR/payroll 13.9% Other 4.2% /

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It isn't surprising that over 43 percent of the nonprofits identified fundraising as a high priority when asked which professional service they expect to need over the next year. Along these same lines, marketing and design, website development, and strategic planning were all identified among the top five needs. These services are needed to address the significant challenges faced over nearly three years. By addressing these needs, organizations should be on a more stable footing for the future.

Planned support and training WHICH OF THE FOLLOWING ACTIVITIES ARE YOU LIKELY TO UNDERTAKE WITHIN THE NEXT YEAR?

Activity

Activity New/adapted program development New/adapted program development Business planning Business planning Diversity, equity, and and inclusion initiatives Diversity, equity, inclusion initiatives

N

N 69 69 48 48 45 45

Pct.

Pct. 41.8% 41.8% 29.1% 29.1% 27.3% 27.3%

Professional development Professional development Board training and and coaching Board training coaching Program policy and procedure development Program policy and procedure development Succession planning Succession planning Advocacy Advocacy

45 45 43 43 38 38 36 36 28 28

27.3% 27.3% 26.1% 26.1% 23.0% 23.0% 21.8% 21.8% 17.0% 17.0%

Strategic alliance preparation and/or implementation Strategic alliance preparation and/or implementation

28 28

17.0% 17.0%

25 25 23 23 15 15 14 14 13 13 7 7 4 4

15.2% 15.2% 13.9% 13.9% 9.1%9.1% 8.5%8.5% 7.9%7.9% 4.2%4.2% 2.4%2.4%

Racial equity/justice initiatives Racial equity/justice initiatives Team facilitation and and supports Team facilitation supports Risk management assessment Risk management assessment Scenario planning Scenario planning Executive coaching Executive coaching Executive search Executive search Other Other

The issues nonprofits have encountered since March 2020 have been highlighted earlier in this report. We can see the list of anticipated activities they are likely to undertake appears to address these challenges and opportunities to increase resiliency. More than 40 percent of organizations are likely to adapt their existing programs or create new ones, likely due to those unique opportunities that presented themselves as a result of COVID (e.g., serving new populations, new partnerships). Nearly 30 percent indicated undertaking business planning activities.

Perhaps because of the inequities that became apparent and exacerbated by the pandemic, 27 percent of organizations are likely to conduct diversity, equity, and inclusion activities. Professional development and board training/coaching round out the top five activities.

COVID arguablystressed stressed both organizational and individual of staff board The members.

COVID arguably both the the organizational and individual staminastamina of staff and boardand members. likely activities be a way to heal make who areindividuals core to serving crucial The likelycan activities can be aorway tostronger heal or those makeindividuals stronger those whothese are core organizations. to serving these crucial organizations.

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Call to Action Nonprofit organizations everywhere have been struggling to do more with less for two years now. nonprofits overcome immense Nonprofit organizations everywhere have been struggling to do more with less forThese two years now.have These nonprofits hurdles to persist, adapt, and even expand services to the community. As presented with the data in this report, the effects on nonprofits have overcome immense hurdles to persist, adapt, and even expand services to the community. As presented with in Butler County are starting to show with a decline in the well-being of staff, staffing shortages, less volunteers, fewer opportunities data inand thisfar-reaching report, the effects onconcerns. nonprofits in Butler County startingacross to show withsectors a decline in the tothe fundraise, mental health Along these lines, manyare nonprofits different identified a well-being of staff, staffing shortages, less volunteers, fewer opportunities toarea fundraise, and far-reaching mental youth mental health crisis as a significant and concerning theme. Additional research in this is recommended.

health concerns. Along these lines, many nonprofits across different sectors identified a youth mental health crisis as a significant and concerning theme. Additional research in this area is recommended.

From this, many questions arise: arise: How long can our nonprofits hold out? How long can How nonprofits an empty tank? are unable From this, many questions How long can our nonprofits hold out? longrun canonnonprofits run Ifonnonprofits an empty to attract and retain new staff, who will be there for the communities they serve? What happens when the additional funding provided tank? If nonprofits are unable to attract and retain new staff, who will be there for the communities they serve? by the government for COVID-19 relief expires?

What happens when the additional funding provided by the government for COVID-19 relief expires?

The nonprofits that have thrived during the pandemic are the ones that have been able to quickly adapt to the changing landscape. Our community needs to follow suit. Support cannot come from one source alone.

Individuals, donors, volunteers, government officials, grant-making institutions, local chambers of commerce, philanthropic organizations, and institutions of higher education all have a role to play in building this muchneeded capacity.

Funding alone, while critical, will not sustain the sector. Innovation and collaboration must be at the core of our community’s response to COVID-19 recovery. Our collective action, especially as it pertains to the needs expressed by the nonprofits in this report, will maximize the impact, both short and long term, in the nonprofit sector.

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References

Beaton, Ph.D., E. (2020).

Ohio Nonprofit COVID-19 Survey: A Report of the Beaton, Ph.D., E. E.E. (2020).

Ohio Nonprofit COVID-19 Survey: A Report of the Results.

Columbus, OH:Results.

The Ohio Columbus Attorney Office andGeneral's PhilanthropyOffice Ohio. and Philanthropy Ohio.

OH: TheGeneral's Ohio Attorney Beaton, E.E., E.,Colchin, Colchin, & Y. Ma, Y. (2020).

Ohio Nonprofit COVID-19 Survey: A Report of Wave 2 Results.

Beaton, E. E., E., & Ma, (2020).

Ohio Nonprofit COVID-19 Survey: A Report of Wave 2 Results.

Columbus, Columbus, OH: The Ohio Attorney Office, Ohio, & OANO. OH: The Ohio Attorney General's Office,General's Philanthropy Ohio,Philanthropy & OANO.

Beaton, E. E., Colchin, E., Ma, Y., Bhati, A. (2021). Ohio Nonprofit COVID-19 Survey: A Report of Wave 3 Results. Columbus Beaton, E. E., Colchin, E., Ma, Y., Bhati, A. (2021). Ohio Nonprofit COVID-19 Survey: A Report of Wave 3 Results.

OH: The Ohio Attorney General's Office, Philanthropy Ohio, & OANO. Columbus, OH: The Ohio Attorney General's Office, Philanthropy Ohio, & OANO.

Dumont, A. (2021).

(2021).The The of COVID-19, as Reported Local Communities.

Notes.Board Washington: Dumont, A. EffEffects ects of COVID-19, as Reported

by Localby Communities.

FEDS Notes.FEDS Washington: of Board of Governors of the Federal Reserve System, February 12, 2021, Governors of the Federal Reserve System, February 12, 2021, Urban Institute. (October 2021). Nonprofit Trends and Impacts 2021: National Findings on Donation Trends from 2015 through 2020, Diversity and Representation, and First-year Impacts of the COVID-19 Pandemic.

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