Even with giving down and demand up, optimism among the regional nonprofit community crept higher this year, according to United Way’s 2012 Non-profit Pulse Survey of northeastern and central Connecticut organizations.
Optimism among the survey respondents hit 71.4 percent in 2012, up 5.3 percentage points from 2011. The increase marks the best year since the survey’s 2007 peak of 78.8 percent, but could be less a sign of improvement and more a sign organizations are adjusting to the new norm with lower expectations.
“As a group, we have now adjusted to the norm. The economy is difficult and people are cutting back on donations, and it becomes a question of how can we tighten up our budget without affecting our services,” said John Prescod, executive director of Hartford youth development agency ConnectiKids Inc.
The positive outcome of the survey may be less the industry doing better than the individual respondents fairing particularly well, said Martin Legault, president and chief executive officer of Hartford disability service organization CIL.
“For us, personally, we have been able to weather the recession pretty well,” Legault said. “Generally speaking, nonprofits were not doing all that well, so the optimism is a little bit surprising.”
United Way distributed 350 surveys and received 84 responses, yielding a response rate of 24 percent, with most respondents from human services.
Despite the optimistic survey results, the struggles of the nonprofit sector since 2007 have not subsided, said Mary Moran Boudreau, the executive director of the Connecticut Oral Health Initiative.
The levels of giving remain troublesome, too, as 59.9 percent reported individual giving remained the same or decreased and 62.3 percent reported corporate and foundation giving decreased or remain unchanged.
“In totality, since the economic downturn, we saw a decrease in foundation and corporation funding, and now it is more on par with what we used to receive so it is about stable. While most foundations cannot increase their funding, they can at least keep it flat,” said Prescod.
The nonprofits still are thankful for whatever they do get.
“We have been able to maintain annual giving from individuals, which we are very happy about considering the economy,” said Anne Ruwet, CEO of New Britain disability services provider CCARC Inc. “It is just great that people are so giving in these times.”
While giving remains stagnant, the survey reported a remarkable increase in the need for nonprofit services: 69.5 percent reported an increase in total need with 83.5 percent reporting an increase in demand for services and programs.
“More and more people have had to look to the non-profit sector to have their needs met,” said Legault. “We have been fortunate that we started diversifying our services and revenue sources five years ago so that when there is a decline in one area of funding, we pick the slack up in another area.”
With the challenges, nonprofits remain proud of what they accomplish as 45 percent of respondents reported their greatest success in 2012 was meeting the increased demand for services.
In order to continue these successes into the future, 21.4 percent of nonprofits reported considering a merger or shared services agreement with other organizations to cuts down on overhead costs.
“We have been working with Connecticut Association of Nonprofits to develop a nonprofit office center in Hartford, where small organizations can come together and share resources and reduce overhead,” Legault said. “It would be a place where the rent would be less expensive and would provide a supportive environment to smaller non-profits.”
Some of the most positive results emerge from collaborative ventures, Prescod said. In its efforts toward youth development, ConnectiKids has partnered with the Village for Families and Children, a nonprofit that works to build a community of health families who protect and nurture children.
“Agencies who have not thought about collaborating in the past were entering into collaborative engagements and were able to benefit from them, including increased opportunities in funding for collaborative grants,” Prescod said. “Adjusting to the new norm has forced us to be able to work around it and as a result we are more stable and more optimistic for what the future can hold.”
Despite the growing enthusiasm at the sector’s ability to remain consistent, declining volunteer support and staff has further hindered the nonprofits’ missions. Of the survey respondents, 64.1 reported volunteerism decreased or stayed the same while 66.7 percent reported decreased or unchanged paid staffing levels.
“Our employees have not had any meaningful increases over the years, and our ability to attract people into this field is of great concern to me. Why would young people go into a field where there is no future for increases?” said Stephen Becker, the president and CEO of Hartford disability service provider HARC Inc.
One reason the nonprofit community remains optimistic is because the Connecticut state government has pledged to keep the social safety net in place for people helped by nonprofit.
“Although in many cases we are still at the bottom, we are looking to a better future now,” Ruwet said. “One reason for optimism in the human services area is that Gov. (Dannel P.) Malloy and the General Assembly have kept their word to preserve Connecticut’s safety net.”
That safety net remains important to the nonprofit community, which sees its purpose as more than just levels of giving, volunteerism, and need for services.
“If we do not care for these people, then who will?” Legault said.
