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Recession Not Over, Not-for-Profits Still Struggling Ontario Trillium Foundation survey finds most organizations surviving, some barely hanging on while others try new approaches
NEWS Not-for-Profits across Ontario continue to feel the aftershocks of the recession, though many have used the downturn to launch new partnerships or explore alternative revenue streams, according to a survey released by the Ontario Trillium Foundation (OTF).
Following up on conversations first held in January 2009, the OTF returned in the fall to ask 100 Ontario not-for-profit organizations how they were faring, and what actions they had taken to cope with lowered donations, sponsorship or funding as well as higher demand for services.
There were notable changes in the status of organizations:
The positive…
- More than 72% of respondents reported collaboration was increasing in the sector
- A large majority of organizations (87%) have now developed plans to manage through the current economic uncertainty
- There have been minimal layoffs or cutbacks in services (they're coping but stretched)
The negative…
- More than 75% of respondents indicated that their organizations were feeling the effects of the recession (compared to about 30% in January)
- Almost two-thirds of organizations surveyed reported a decline in funding over the past year
- 68% of respondents reported the fundraising climate was worse (34%) or the same (34%) as in January 2009
- About 30% of respondents reported some reduction in the number and value of corporate sponsorships
- 68.9% reported experiencing an impact on their programs and services as a result of the downturn – 77% for social service organizations, 56% for arts organizations, 67% for environmental organizations (which may see opportunities to increase revenue, community engagement or further environmental goals)
- Food banks reported an average 25% increase in demand for services across the province
QUOTE “On the bright side, a majority of respondents indicated collaboration was increasing,” said OTF CEO L. Robin Cardozo. “Several organizations noted that, in tough times, agencies are often forced to come together to look at what they have in common and how to support each other. That’s a good thing.”
QUICK FACTS Examples of what the Ontario Trillium Foundation heard:
- In Toronto,an environmental organization said some institutional funders or donors who in the past may have given $10,000 - $15,000 have pulled back, giving in the $2,000-to-$5,000 range
- In Eastern Ontario, a credit and family counseling service was swamped with 1,000 new clients coming through the doors - in one month alone
- In Southwestern Ontario, an employment resource centre reported that by July client numbers had doubled over the previous year
- Organizations with endowment funds continue to face low returns on their endowment funds and the possibility of several more years of low investment earnings
Examples of collaboration/resiliency:
- In Leamington, the Ontario Association of Food Banks partnered with local farmers to bring 300,000 pounds of fresh peppers to food banks in the area after donations from food manufacturers dropped significantly
- In Toronto, several women’s shelters have come together, with support from the province, to undertake a collective strategic planning exercise
- In Cochrane and other northern communities, credit counseling agencies are exploring a joint marketing plan to make their advertising go further
- Ecology Ottawa is collaborating with low-income housing providers to find ways to lower energy bills for their buildings
ABOUT A leading grantmaker in Canada, the Ontario Trillium Foundation strengthens the capacity of the voluntary sector through investments in community-based initiatives. An agency of the Government of Ontario, OTF builds healthy and vibrant communities.
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For more information on the survey or more examples of how local community organizations said they are responding to the downturn, contact:
Alexis Mantell 1.800.263.2887 ext. 218 amantell@trilliumfoundation.org
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