Nonprofits Make More Cuts, Seek Efficiency
Nonprofit organizations are increasingly turning to layoffs and dipping into reserve funds in order to stay afloat, according to an updated Bridgespan Group study.
The study, which tracks survey data from nearly 100 nonprofit leaders, was begun in 2008 and updated in May.
In November 2008, 28 percent of nonprofits said they had let staff go. In May, that number jumped to 41 percent. In November, 19 percent of respondents said they had dipped into their reserve funds and last month, 33 percent of those surveyed said they had done so.
More nonprofits also said they had cut staff salaries and renegotiated the terms of funding to focus on core programs.
While the cuts identified in the survey are dramatic, Bridgespan, a nonprofit strategy consulting group based in Boston, said the tactics suggest nonprofits are using the economic downturn to strengthen their organizations to be less costly and more efficient.
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