Revenue sources are changing for many nonprofits

July 14, 2014

Revenue sources are changing for many nonprofits

Although the total number of contributions to nonprofit groups in the U.S. isn't drastically changing, the sources of the money used to fund programs and keep charitable organizations operating are. Donations from for-profit businesses dropped significantly in 2013, falling 3.2 percent according to statistics from the annual Giving USA study and reported by the Chronicle of Philanthropy. The fall in donations from corporations was offset by increases in many other forms of giving, with the amount of bequests rising the most and providing 7.2 percent more money to nonprofits than they did in 2012. Donations from foundations and individuals also rose.

Nonprofits should take into account the increased giving among individuals and families, as well as foundations and bequests, when formulating their outreach strategy going forward. Organizations may consider refining their strategies, whether that means reducing corporate outreach to focus on more promising prospective donors or shoring up contacts at current contributing companies to better weather the possible changes.

Overall, the total number of contributions to nonprofits from all sources rose again in 2013, according to information from Indiana University-Perdue University Indianapolis' school of philanthropy. The school's analysis of the Giving USA report found that giving has gone up for four straight years and is approaching levels not seen since the Great Recession. The recovery has taken a long time to realize, especially for nonprofits, but the results of the slow improvement of the economy are starting to reach the charitable sector.

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Prevent Blindness America, Chicago, IL

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Visually Impaired Preschool Services, Louisville, KY