Conducted by

The Community Foundation for Palm Beach and Martin Counties

Allegany Franciscan Ministries
and the Quantum Foundation

3rd Annual Nonprots & The Economy Survey 2011

Table of Contents

Introduction
Key Findings

Page 3
Page 4 - 5

Survey Results
Organizational Proles

Page 6

Respondants by County

Page 7

Challenges

Page 7

Current Challenges

Page 8

Financial Health

Page 9

Three Year Outlook

Page 10

Cash Reserves

Page 10

Cash Flow

Page 11

Populations Served

Page 12

Stafng

Page 12

Facilities

Page 13

Planning

Page 13

Endowment

Page 14

Gauging Interest

Page 14

Funding Mix

Page 15

Organizational Response

Page 16

Conclusion

Page 17

Introduction
The economic recovery predicted for 2011 has
left many wondering when or if it will ever arrive.
Unemployment hovers around nine percent and
housing prices are predicted to fall another ve
percent in the coming year. Many economists remain
optimistic, but as we wait for a real recovery, our
local nonprots deal with the reality of today.
Shrinking savings, lower or non-existent real estate
equity, and unemployment have put an obvious strain
on our community, placing signicant pressure on
organizations trying to effectively meet the needs of
the community.
There are positive stories to tell as well, but the
status of the nonprot sector in Palm Beach, Martin,
and St. Lucie Counties, as a whole, seems relatively
unchanged from 2010. Diminishing sources of
funding, both public and private, have challenged
the sector. For social service agencies that are
desperately needed to serve the community, difcult
choices between serving clients and organizational
capacity often have to be made. And while
nonprot organizations struggle to maintain quality
services, foundations have encountered their own
difculties due to reductions in the investment
revenue that fuels their ability to offer grants.
Still, we remain cautiously optimistic. The community
is adapting to doing more with less, and the stories
that have been shared through the 2011 Nonprots
and the Economy survey have been inspiring. We
have capable, innovative leaders in our nonprot
community a group of unsung heroes. We hope
that the recession of recent years will soon be a
distant memory. In the meantime, we will continue
our commitment to local nonprot organizations,
adapting to meet the challenges of the current
economic times.
This is the third year that the Community Foundation
and Allegany Franciscan Ministries have partnered
to take the pulse of the nonprot sector in our
region. We were joined this year by the Quantum
Foundation, and heard directly from our nonprot
community about their experiences in managing

operations and services in this uncertain economic

climate.
We heard the good and the bad, and learned
about some of the difculties theyve encountered
and how theyve been overcome. Their stories are
both daunting and impressive. The nonprots in our
community are resilient, with leaders who use both
creativity and wisdom to guide their organizations.
They are an impressive group, and they deserve our
respect and thanks.
Our hope is that the key ndings of the survey in the
3rd Annual Nonprots & the Economy Survey: Understanding our Community 2011 will spark meaningful conversation and action that will support and
strengthen the nonprot sector, allowing it to respond
to our communitys needs.
We would like to express our gratitude to the nonprot leaders and volunteers that responded and
shared their knowledge, thoughts, and time. We can
only develop strategies and solutions to the issues
that they encounter daily when we know that they
exist. As we continue to nd and improve ways that
we all can work together, we hope that members of
the nonprot community will continue to provide their
valued feedback.
We welcome everyone to help join the discussion on
the issues the survey has identied on YourPBC.org,
Palm Beach Countys Digital Public Square at www.
yourpbc.org/economy.
Your partners in philanthropy,
Leslie Lilly, President & CEO
Community Foundation for Palm Beach and Martin
Counties, Inc.
Eileen Boyle, President & CEO
Allegany Franciscan Ministries, Inc.
Kerry Diaz, President
Quantum Foundation, Inc.

Key Findings
In May 2011, the Community Foundation, in
partnership with Allegany Franciscan Ministries and
the Quantum Foundation, conducted the 3rd Annual
Nonprot Survey to gather data regarding the
needs in the community, the state of nonprots and
how best funders could be of assistance. A total of
170 responses were received through the online
qualitative survey, with each response representing a
signicant segment of our community and economy1,
including:

6,456 Full Time Staff Members

52,246 Volunteers, representing 2,946,438
hours of volunteer service
3370 Part Time Staff Members
2,207 Board Members
160 Open Full Time Positions
241 Open Part Time Positions

Challenges
Nonprots continue to face unprecedented
challenges as more people in our community rely
on services and as resources are more limited than
ever before. Mirroring results from our previous two
surveys, nonprots identied the following as major
challenges: obtaining funding, recruiting donors
and covering employee payroll, benets and/
or insurance costs. The good news is that 39% of
respondents showed an increase in total revenue as
compared to only 25% in 2010.
However, this was offset by 66% of respondents
reporting an increase in expenses as compared
to 53% in 2010. Funding for operating expenses
again emerged as a top priority for organizations
in light of increase of demand for service. Of all the
respondents, 72% felt some degree of vulnerability
and 2% noted that the organization would cease
operations if the economy did not improve soon.

Areas of Highest Need

In 2011, agencies reported that the entire
population continues to be affected by the current
economic climate. Their comments indicated an
increase in those in middle income brackets requiring
services in light of the economic downturn. Continued
high unemployment plagues our community, affecting
all segments of the population. People are facing
difculties in many areas, particularly in the areas of
unemployment, education, and healthcare.
Organizational Actions in Response to the
Economy
Organizations have continued to cut expenses and
increase fundraising activities. Many organizations
(63.7%) reported they are collaborating with other
nonprots. Some organizations have also reduced
staff, but only a small portion of the respondents
(9.4%) reported that they had to turn clients away.
Organizational Capacity
New on this years survey were questions related to
strategic planning and succession. Many respondents
noted a lack of staff time, and a desire for
assistance with training and capacity building.

Gauging Interest: What to Do

The activities that nonprots wish to engage in to
continue to effectively serve the community have
remained constant, and this years survey responses
indicate continued interest in building endowments,
increasing volunteer opportunities, undertaking
collaborative fundraising efforts and greening
business operations.
The survey instrument was designed to collect
summative information. These gures are qualitative
only.
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Key Findings
Suggestions to Funders in Addition to Giving
Nonprots repeatedly noted the need for
operational support and assistance in establishing
partnerships. Many also indicated a need for
training and advocacy on behalf of the nonprot
sector.
Methodology
The original survey was distributed in April 2011.
It was distributed by the Community Foundation for
Palm Beach and Martin Counties, Inc. utilizing an
online survey tool. The survey was initially sent via
email to representatives of nonprot organizations in
Palm Beach, Martin and St. Lucie Counties.
The survey was open for three weeks between
April 21 and May 12, 2011. One hundred seventy
responses (less than 8% response rate) were
received. We can only speculate as to the reason for
the low response rate, however, because the survey
is qualitative rather than quantitative, the results are
both valid and useful for decision-making and long
term planning.
In the tables and charts in this report, we have
omitted skip responses from the calculation of
percentages. In other words, percentages in the
tables and charts represent the number of people
who gave a particular answer to a question, divided
by all of the people who offered a response to the
question.

Survey Results
Organizational Proles

In order to best understand the survey results it is important to have a picture of the organizations represented
by the respondents.
Survey respondents spanned across a variety of service areas (Figure 1). Top respondents represented health
and human service agencies followed by education focused organizations, then those involved in arts and culture. These gures closely reect the respondents from last years survey.

Table 1 reects the breakdown of respondents by operating budget. Fiscal years for respondents largely
began in January (39.7%), followed by July (35.1%) and then October (20.1%).

Survey Results
Respondents by County

The majority (75.8%) of responding organizations are headquartered in Palm Beach County, followed by
Martin County and St. Lucie County. Figure 3 demonstrates the counties that are served by these nonprots.
Many of the respondents serve more than one county but the majority serves Palm Beach followed by Martin
and then St. Lucie.

The largest group of survey respondents identied themselves as Executive Directors/CEOs (60%). The next
highest respondent group included Development/Fundraising staff (17.3%), followed by programs/services
staff (6.7%). Board Members/Trustees made up 3.3% of respondents, as did Communications and Marketing
staff. Responses indicated that Executive Directors/CEOs have primary fundraising responsibilities (45.6%)
followed by Development/Fundraising staff (34%).
Challenges
When asked to rate the current challenges on a scale of 1 to 3 (1 = not a challenge, 2 = minor challenge, 3
= major challenge), respondents demonstrated that the challenges that they face have not changed in the past
year. Just as in 2010, recruiting donors and obtaining funding are of top concern followed by the ability to
cover employee payroll, benets and/or insurance costs. Of less concern at this time is recruiting qualied staff,
the ability to attract new clients, and competition with other nonprots. Figure 3 details the total responses. 2

The Rating Score is the weighted average calculated by dividing the sum of all weighted ratings by the number of
total responses.
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2

Survey Results
Challenges

When asked what the biggest need is for organizations in these times, 61 respondents provided open ended
feedback. Almost every response indicated a need for funding, as well as the ongoing and/or increased need
for services in our community, particularly in the areas of employment and healthcare.

Nonprots told us
Military families and wounded warriors have needs and challenges that the general population does not experience or comprehend. They
want to remain a productive member of our society, but often in transition they need help.
Challenges include: SAFE, decent and affordable housing with support services; food insecurity; lack of a living wage; lack of childcare
that is affordable or subsidized; transportation.
Many children, teens, adults and seniors in our community dont know where their next meal will come from, and if they eat, there is little
chance that it will be a nutritious meal.
Being poor unemployed or underemployed present signicant challenges just to get through each day, add to this the burden of sickness
and chronic disease which make the simplest of daily activities seem overwhelming. Most of us have had the unhappy experience of being
sick; imagine not being able to get medical attention or medications to get well while receiving little or no respect.
We have had an extremely challenging time raising funds from our traditional sources. Grants, especially for general support, have
virtually dried up. We have also traditionally obtained state contracts and these have dried up as well. Our existing members have
stepped up to the plate and individual donations are up, but not enough to ll the gap. We are solvent through the end of the year and
have a reserve fund, but will need to make dramatic changes in early 2012 if things dont change.

Survey Results
Financial Health

Respondents were asked how the state of the organization has changed in comparison to one year ago. The
responses indicated an increase in demand for services, number of clients served/members participated and
total expenses. Over all, total revenue has decreased for 35% of respondents, but increased for 39%. This
shows a signicant improvement over 2010, when only 25% of respondents indicated an increase in revenue
vs. 52% with a decrease.
During the same time period, however, demand for services increased by 76%, with a 68% increase in the
number of clients served. And while the demand increased dramatically, the number of paid staff members
remained stable. The numbers of volunteers increased for 40% of respondents vs. 10% reporting a decrease,
possibly due to a large number of available volunteers. (Figure 5)

Survey Results
Organizations largely reported some sense of vulnerability (72%). However, 27.9% indicated that the
organization was nancially healthy and not currently vulnerable, an increase from 16% in 2010 (12% in
2009). Figure 6 demonstrates overall responses.

We are nancially
healthy andnot currently
vulnerable.

We have been
nancially healthy to
date but feel
vulnerable in the future.

We are experiencing
chronic nancial
problems
but expect to survive.

We will be closing our

doors if the economy
does not improve
soon.

Three Year Outlook

Over the next three years, 56.8% of responding organizations expect to increase programming to meet
current needs, an increase over last years 40.8%. They will also evaluate and recongure existing
programming (28.1%). Figure 7 details organizational outlook through 2013.

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Cash Reserves

Survey Results

Respondents indicated that 43.8% have at least four or more months of cash reserves available, up slightly
from 41% in 2010. The numbers of organizations with at least two months cash reserves was 71.9%, an increase from 65% in 2010. 7.5% of respondents reporting that there are no cash reserves available (Figure 8).

Cash Flow
When queried about cash ow, 33.3% of the respondents indicated that their organization experienced
negative cash ow in the previous 12 months (compared to 36.3% last year and 39% in 2009). Primary
reasons cited for cash ow problems included normal business cycles and the challenges related to unmet
fundraising goals. Twenty eight organizations noted that they borrowed money in the previous 12 months with
the need to stabilize cash ow listed as the top reason for that action.

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Survey Results
Populations Served

Organizations were asked two questions related to the current economy and the populations directly served by
the agency. When questioned about age demographics and need (children, young adults, middle aged adults,
the elderly, minorities, immigrants, and individuals with disabilities), respondents indicated that every single
age group was in high need of services. Throughout the open-ended comments, respondents noted that no
population has gone untouched and that rating the populations in any order of need was extremely difcult.
When asked about priority areas of need in direct correlation to population served respondents ranked the
following in order of priority:
1.
2.
3.
4.
5.
6.

Unemployment
Healthcare
Education
Housing
Hunger
Social Activities

Many of the respondents also noted no one area is exclusive of the other. There are many priorities at this
point in time and they are often interrelated.
Nonprots told us
Many of our patients have not received medical care for a decade or more [] Chronic disease management education is a priority for
our clinic, many of our patients nd this education to be life changing.
With the recent economic difculties, many of our agencies report that they are seeing numerous rst-time visitors to their pantries seeking food assistance.
Many children, teens, adults and seniors in our community dont know where their next meal will come from, and if they eat, there is little
chance that it will be a nutritious meal.

Stafng
The organizations surveyed represent 6454 full time staff members and 3370 part time staffers. When asked
whether there were any open positions for which they are currently hiring, 33.1% responded in the afrmative,
indicating 160 full time and 241 part time openings. The respondents indicated a strong reliance on volunteer
service. Respondents noted that 52,246 volunteers were associated with their organizations, and in 2010,
volunteers provided a staggering 2,946,438 hours of time. Primary sources of volunteers included the elder
community and students.

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Survey Results
Facilities

In response to being asked whether the organization owns or rents its space, 36.4% responded that they own
their space, 33.6% reported that they rent their space, and 15.7% utilized donated space. An additional
14.3% indicated other, possibly because their space may be partially rented/partially owned, home ofce
space or they do not currently have facilities.

Planning
This year, the survey included questions related to strategic planning. When asked Does your organization
currently have a strategic plan in place? 83% of respondents answered in the afrmative. Of the
organizations with a strategic plan, 93% stated that their organization was adhering to the current plan.
Also new this year was a question on succession. Respondents indicated that 31.3% of their organizations have
a succession plan in place for senior staff members, while 59.9% do not.

Strategic Planning: Nonprots told us

Our strategic plan needs to be reviewed and updated.
We are one year into our strategic plan and, after our 12-month re-evaluation, we have readjusted slightly but, for the most part, are
right on track.
Our strategic plan has not been revisited [] we are stretched in terms of time to do so because we have such a low staff level now, but
recognize this as a high priority need.

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Survey Results
Endowment

Due to the continued need for identifying sustaining funding sources, we again queried nonprots on endowment related issues. Thirty nine organizations (27.9% of those who responded to the question) noted that they
currently had an endowment. Of the organizations that provided gures, the value of endowments was spread
out equally, with 6.4% reporting values of less than $250,000 up to 4.7% with values of over $5,000,000.
When asked how the current asset value of the endowment compared to the previous scal year, there was
good news reported. Almost 48% reported an increase in the value, while 28.6% saw no change, and 23.8%
responded that their endowments had decreased in value.
Thirty ve organizations reported that there was a spending policy in place for their endowment and ve
organizations noted that they had to rely on corpus (invade principal of their endowment) within the past 12
months to sustain operations.
Gauging Interest
Nonprots demonstrated strong interest in building endowment and increasing volunteer opportunities.
Many respondents also expressed an interest in greening business operations. These results are unchanged
from 2010. Overall the numbers indicate that organizations are looking for ways to sustain funding sources,
decrease costs and improve operations (Figure 11). Organizations reported little interest in merging operations
and indicated possible interest in the idea of utilizing shared space and back ofce services with other
nonprots.

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Survey Results
Funding Mix

Nonprots were asked to compare their funding mix in the past six months to the same period of time last year.
Figure 12 represents those organizations which responded to the question and for which the items referenced
were applicable. Respondents reported greatest decreases in the areas of government funding, individual
donations (excluding bequests), and corporate donations. The greatest increase in type-specic funding came
in the areas of special events and donations from individuals.

Endowment: Nonprots told us

In order not to discontinue a service and since we lost [] state funds, there were no choices except to invade our principal.

15

Survey Results
Organizational Response
Organizations are all looking at a variety of measures to improve their capacity in these uncertain times.
When asked what actions the respondents have taken specically due to the economy, Figure 13 demonstrates
that the most common response (68.5%) has been to cut nonessential expenses, followed by collaborations with
other nonprots (63.7%). Respondents also indicated that they have increased fundraising activities (62.9%).
These responses are very similar to responses in both 2009 and 2010.

Respondents also indicated that they have increased fundraising activities (62.9%). These responses are
closely related to responses in both 2009 and 2010.

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Survey Results
Conclusion
Hundreds of nonprot organizations are located in Palm Beach, Martin, and St. Lucie Counties. Collectively,
they help thousands and thousands of our friends and neighbors each day. They feed, heal, teach, and enrich.
They offer volunteers meaning and purpose. In short, it would be nearly impossible to nd someone in our
community who isnt affected by the nonprot sector.
We all bear the privilege and responsibility of helping to create a strong and thriving local nonprot
community. As economic times remain uncertain, demand for services continues to increase while revenues
remain level or decline. We hope that the information gathered in the 2011 Nonprots and the Economy
Survey will offer the catalyst for collaboration and action.
We would again like to express our gratitude to the nonprot leaders and volunteers that responded and
shared their knowledge, thoughts, and time. As we continue to nd and improve the ways we all can work
together, we hope that members of the nonprot community will continue the conversation. We welcome
everyone to join the discussion on YourPBC.org, Palm Beach Countys Digital Public Square at
www.yourpbc.org/economy.

Biggest organizational need: Nonprots told us

Funding, active board members, skilled volunteers are major areas of need.
We are limited with the amount funding to serve the community and their needs. There is always more that we can do but with so little
support makes it very difcult to reach out in those needed areas of concerns.
We need assistance developing a strategic plan, as well as ongoing board training.
The need to coordinate and work in partnership through collaborative efforts in the community will be more important than ever.
We have had an extremely challenging time raising funds from our traditional sources. Grants, especially for general support, have
virtually dried up. We have also traditionally obtained state contracts and these have dried up as well. Our existing members have
stepped up to the plate and individual donations are up, but not enough to ll the gap.
I think our largest challenge is fundraising and building capacity in this area amongst the Board and the staff. It would be great if the
funders of this survey would make signicant investments into this type of capacity building so that we could diversify our revenue.

For a copy of the survey instrument, please contact the Community Foundation for Palm Beach and Martin Counties
at 561.659.6800 or by email info@cfpbmc.org.
17