Roughly 1,800 more New York nonprofits could close because of COVID-19: report

New York state could likely see an additional 1,829 nonprofits close because of the COVID-19 crisis, ranking among the top 10 states that could see the most charities shuttered per capita, according to an analysis by Candid.

Overall, the report shared by the research group showed that New York could anticipate seeing 2,875 charities close in the future. In a best case scenario, that number may be as low as 767 – but in a worst case scenario, closures could reach as high as 9,500. 

Prospects for many organizations depend on numerous factors explored in the analysis, such as how long their services have been disrupted and their decline in revenue from government funding, foundations and other sources. As one of the states hardest hit by the pandemic, it’s no surprise that institutions in New York have become so vulnerable.

The estimates paint a desperate picture for the more than 33,700 nonprofits housed in New York, the second-largest in the country. Federal aid given in the form of the Paycheck Protection Program has helped keep around 11,000 nonprofits in New York afloat, at least temporarily. But another federal loan initiative hasn’t proven helpful to many other organizations. 

Meanwhile, massive budget deficits at the state and local levels are jeopardizing the financial well-being of many organizations that work with the government. The state has already been withholding payments to nonprofits it contracts with as it faces a $62 billion decline in revenue over the next four years. And federal aid that local officials have been banking on has remained stalled as the U.S. Senate doesn’t plan to return to session until Sept. 8.