Three in 10 Hudson Valley nonprofits say dissolution is at least somewhat likely

View of Poughkeepsie, New York.
View of Poughkeepsie, New York.
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Smaller nonprofits in the Hudson Valley are particularly vulnerable to becoming insolvent.

Three in 10 Hudson Valley nonprofits say dissolution is at least somewhat likely

Nonprofits on average expected to see annual revenues losses of 41% because of COVID-19.
September 25, 2020

About 30% of Hudson Valley nonprofits have reported they are at least somewhat likely to dissolve because of challenges brought on by the COVID-19 pandemic, according to a new survey of 291 regional nonprofits.

Declining charitable donations, canceled fundraisers and irregular government funding have contributed to the financial challenges facing many organizations throughout New York. On average, respondents to the survey conducted by the New York Council on Nonprofits between June 29 and July 14 expected to see an annual revenue decrease of 41%. Losses were worse for nonprofits with budgets under $1 million and for those without reserve funds or a credit line. Expected financial insolvency was also more common for organizations without endowments, reserve funds or government funding.

“Services that people are relying on to meet their needs are quickly eroding as nonprofits are reducing their workforce, shutting down programs, and even permanently going out of business; all making it even more challenging for the region to economically recover,” Doug Sauer, CEO of the New York Council on Nonprofits, said in a statement. 

Respondents spanning across Columbia, Dutchess, Greene, Orange, Putnam, Rockland, Sullivan, Ulster and Westchester counties identified fundraising as a major area where they needed additional technical support. Attracting philanthropic dollars will remain difficult given the continued economic downturn, fears of a second wave and limited resources among local funders, according to the report accompanying the survey. 

“The competition for donor and philanthropic grant dollars is going to be significantly greater,” it reads. “The overall resources are simply not available to meet the longer-term or sustained revenue needs and the heightened expectations of many, if not most, of the nonprofits surveyed, even if they measurably improved their capacity or infrastructure to fundraise.”

Foundations in the region will use the survey’s results to find new ways to collaborate with nonprofits and offer technical assistance.

NYN Media reporter Kay Dervesh
Kay Dervishi
is a staff reporter at NYN Media.
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