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FORVIS LLP's annual nonprofit report found a widespread decrease in net income among participants.
The certified public accounting firm, which operates its Springfield office at 910 St. Louis St., found in the report that nearly half of the nonprofits surveyed had a decrease in net income last year, according to a news release. FORVIS' 2023 State of the Nonprofit Sector report was released this morning.
“Similar challenges and new worries have appeared since last year’s report for nonprofits,” said Dan Prater, senior managing consultant with FORVIS and author of the report, in the release. “Although talent acquisition and retention issues remain, concerns surrounding the economic fallout and its impact on program delivery are top of mind.”
FORVIS officials say the net income decreases were due to increases in compensation and operational costs, drops in state appropriations and the end of American Rescue Plan Act funds.
Other survey highlights include that:
• 68% of nonprofits had increased demands for programs and services;
• 50% had difficulty delivering programs and services due to staffing shortages;
• 78% continue to try to fill staff vacancies; and
• 40% of human services and 33% of religion-related nonprofits had large decreases in financial contributions.
The report surveyed 195 nonprofit organizations of various sizes nationwide. Conducted from November to December last year, the survey included 30 questions about organization size, function and stability.
“Despite this economic turbulence, most organizations reported they are satisfied with their current financial position and almost all of them are looking inward, spending more on their current employees increasing salaries and enhancing benefits,” Prater said in the release.
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