Nonprofits in trouble: One-third of organizations may not survive pandemic, recession
The twin crises of pandemic and recession are straining the region’s philanthropies and could force as many as a third of nonprofits to close or merge before the economy recovers, according to top executives in the sector.
Area donors responded generously at the onset of the disease and financial slump, as foundations, corporations and individuals increased their giving. But the explosion in the need for food, rental assistance and other charity quickly outstripped available resources. The Greater Washington Community Foundation, the region’s largest funder, collected more than $8 million starting in March for its Covid-19 Emergency Response Fund — only to see requests for aid exceed $60 million.
Now private donors, facing their own financial problems, are turning cautious just as federal aid risks drying up because of political gridlock in Congress and the White House.
Source: The Washinton Post