Pandemic Pushed Nonprofits to Accelerate Transformation

Nonprofit organizations accelerated plans to adopt new technologies, operational models, and budgeting and financial approaches last year because of the pandemic, according to our annual Nonprofit Pulse Survey of leaders and executives conducted by CBIZ Marks Paneth.

The report provides insights into nonprofit leaders’ experiences, concerns, and priorities. This year’s survey found that pandemic challenges accelerated initiatives that began before COVID-19, as leaders discovered, through adversity, unexpected source of new audiences, donors, and resources.

Almost one third (31.3%) cited new funding opportunities as the most significant opportunity for their organization, which tracks with last year’s survey, when diversifying funding and building cash reserves was a concern. This year they are actively pursuing solutions.

While last year’s survey found budget shortfalls and rising expenses to be the biggest threat, only 48% selected that concern this year, while staffing challenges became the most cited threat among 69% of respondents.

Nonprofit leaders displayed admirable flexibility, responding to challenges by calling on board members, volunteers and outside advisors to help them stay focused on organizational efficiency, new funding sources, and technology implementation. In addition, leaders also initiated:

Virtual and hybrid programming
Remote staffing
Flexible budgeting
Online workflow, communications, and marketing tools
Business continuity planning
Cybersecurity and data protection

In 2021, nonprofits benefitted from federal and state pandemic relief funding. Two rounds of the Paycheck Protection Program (PPP) and other government relief helped organizations maintain staffing levels and more, with 38% indicating the forgiveness application is in process or completed. Another 32% said they had no outstanding debt issues.

According to Hope Goldstein, a Managing Director at CBIZ who leads CBIZ Marks Paneth’s Nonprofit, Government & Healthcare practice, “A lot of what nonprofit leaders did to survive in the last couple of years are changes that will become part of their go-forward operations, like having hybrid in-person virtual events, or leveraging board members and volunteers to fill staffing gaps.”

Further, Goldstein, who is also a Shareholder at Mayer Hoffman and McCann (MHM), says, “the challenges of the pandemic have accelerated initiatives that will power up the nonprofit sector’s future in what will be a new and more robust industry. Taking leaps that seemed impossible in the past are giving these leaders many opportunities to transform their organizations.”

What’s next for nonprofit organizations? What support do they need to pursue their mission? Access the full survey to learn more.