Nonprofits across Arizona are still reeling from the impact of the COVID-19 pandemic, reporting total revenue losses thus far of nearly $53 million, according to a recent survey by the Alliance of Arizona Nonprofits.
In its updated Covid-19 Nonprofit Impact Pulse Survey as of June 11, 99% of 488 respondents nonprofit organizations have been significantly impacted by the pandemic. Of those, 92.5% reported decreased revenue and 75% indicate a disruption of services to clients and communities. The organizations responding represent statistics for establishments in the areas of health, human services, animal welfare, youth development, and the arts but do not include colleges or hospitals.
As of June 11, the anticipated loss through the end of the organizations’ respective fiscal years is nearly $270 million. One-quarter of respondents reported laying off or furloughing 2,877 employees as a result of the pandemic. Arizona nonprofits employ more than 170,000 Arizonians or 1 in 16 paid jobs in Arizona according to the 2018 report from the L. William Seidman Research Institute, the consulting arm of W. P. Carey School of Business at Arizona State University.
Nearly 60%, or 299 organizations, applied for Paycheck Protection Program (PPP) loans totaling more than $63.8 million in relief funding. Of those applying for loans, 60% of respondents were approved, 33% are waiting for approval and 8% were denied funding at the time of the survey.
“We know that the situation for most Arizona Nonprofits is grim, and we anticipate these numbers only represent the ‘tip of the iceberg,’” said Alliance of Arizona Nonprofits CEO Kristen Merrifield. “At the same time, nonprofits are incredibly resilient and have long been a major economic engine for Arizona as the fifth largest employer with revenue contributions on par with retail and construction sectors. This means that getting critical relief to these organizations through increased donations, government relief packages and state and local funding must be a top priority. Many nonprofits are on the front lines, experiencing an increase in demand as our communities turn to them for much-needed support. We call on our community to continue to support nonprofits in whatever ways they can.”
Nearly 70% of responding organizations also reported a loss of 36,477 volunteers as a result of the pandemic.
According to Independent Sector, a national organization that advocates for public policies impacting the charitable sector, volunteer hours are valued at $25.45 an hour. Figuring at least one hour of time per volunteer, the minimum value of the loss of donated hours is likely more than $900,000.
For more information about the Alliance of Arizona Nonprofits, visit www.arizonanonprofits.org.