the state of the new jersey non-profit community...december 6, 2017 somerset, nj annual nj...
TRANSCRIPT
February 25, 2019
The State of the
New Jersey Non-Profit
Community
• Promoting New Jersey’s non-profit community
• Public policy
• Research (non-profit statistics, trends)
• Annual conference
Advocacy/Public Education
• Management/compliance assistance
• Workshops/seminars/Webinars
• PublicationsCapacity Building
• E-newsletters, resource lists, info/referral
• Free job postings
• Cost saving benefits Member Services
Since 1982, the champion & go-to resource for and about New Jersey’s non-profit community
Here for YOUnjnonprofits.org
4www.njnonprofits.org/Events.html
5
December 6, 2017
Somerset, NJ
Annual NJ Non-Profit Conference
The “don’t miss” conference for NJ non-profits
600 non-profit leaders and allies
Save the Date!
December 4, 2019 Somerset, NJ
Thanks to
for supporting
New Jersey Non-Profits 2019: Trends and Outlook
Sally GlickPrincipal of the Firm and Chief Growth Strategist
Jonathan R. PearsonExecutive Director, Corporate
Social Responsibility
What we’ll cover today:
Overview of NJ Non-Profit Community
Highlights of 2019 Survey Findings
Why this Matters
What Can we Do?
Food pantries
Afterschool programs
Museums
Hospitals
Environmental protection
Disaster relief
Education
Mental health
Public radio
Philanthropy
Drug/alcohol prevention
Faith-based organizations
Housing
Senior care
Human service
Social justice
Touching every aspect of our lives
Non-Profits MATTER
Non-Profits MATTER
34,000+ 501(c)(3) orgs in NJ
324,000 employees 9.7% of the state’s private work force
More than construction, transportation, public utilities, finance and insurance industries
$42 billion in expenditures annually
1.6 million volunteers providing $5.3 billion in service
Sources: IRS Business Master File of Exempt Organizations; Urban Institute National Center for Charitable Statistics; U.S. Bureau of Labor Statistics; Corporation for National and Community Service; Independent Sector
TheSurvey
www.njnonprofits.org/2019AnnualSurveyRpt.pdf
Growing DEMAND
National and NJ surveys:
2/3 to 4/5 of survey respondents
consistently report
rising demand for services.
This upward trend has been reported by non-profits for
numerous consecutive years.
2019 NJ Non-Profit Survey:
66% of NJ respondents said
demand had risen in 2018.
76% projected that demand would
continue to rise in 2019.
Sources: Nonprofit Finance Fund, State of the Sector surveys, 2018 and prior years; Center for
Non-Profits, New Jersey Non-Profits: Trends and Outlook survey reports, multiple years
Resources Not Keeping Pace
Less than two-fifths (38%) of 2019 survey respondents reported
funding increases in the previous fiscal year…
…but 59% reported that
expenses had increased in the same period...
Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2019
Resources Not Keeping Pace
Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2019
…and only 32% reported that
support and revenue had exceeded expenses in their last fiscal year.
Resources Not Keeping Pace
Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2019
7%
6%
3%
5%
14%
7%
2%
6%
9%
32%
12%
9%
20%
31%
17%
15%
1%
1%
7%
7%
16%
12%
11%
4%
4%
13%
11%
3%
6%
15%
14%
18%
22%
17%
23%
31%
22%
20%
13%
19%
25%
32%
29%
18%
34%
41%
40%
39%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Other
Bus. Ventures/Commercial Activity
Local government
County government
State government
Federal government
United Way
Endowment
Planned Giving
Special Events
Investment Income
Membership Dues
Fees for service
Donations from individuals
Corporate donations
Private foundations
% responses reporting funding change per category (N=161)
Funding Changes 2018 vs 2017
Increase Decrease No significant change
Resources Not Keeping Pace
Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2019
Two-thirds (68%) of 2019 survey respondents predicted that
expenses would increase in 2019…
…but only 49% expected that
overall funding would increase.
2019 Projections
Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2019
3%
10%
5%
9%
16%
8%
1%
5%
15%
31%
12%
9%
26%
44%
31%
27%
1%
3%
4%
11%
10%
6%
3%
2%
8%
7%
1%
2%
6%
4%
7%
10%
12%
22%
31%
26%
23%
13%
18%
19%
34%
21%
22%
27%
30%
32%
32%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Other
Business venture/commercial activity
Local government
County government
State government
Federal government
United Way
Endowment
Planned Giving
Special Events
Investment Income
Membership dues
Fees for service
Donations from individuals
Corporate donations
Private foundations
% responses reporting funding change per category (N=157)
Predicted Funding 2019 vs 2018
Increase Decrease No significant change
2018 Predictions vs. 2019 Survey
Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2018 and 2019
In last year’s survey, 49% of respondents predicted thatindividual gifts would increase in 2018.
But only 31% of this year’s respondents reported that individual gifts
had actually increased in 2018.
2018 Predictions vs. 2019 Survey
Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2018 and 2019
In last year’s survey, 35% of respondents predicted thatcorporate funding would increase in 2018.
But only 17% of this year’s respondents reported that corporate funding had
actually increased in 2018.
2018 Predictions vs. 2019 Survey
Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2018 and 2019
In last year’s survey, 34% of respondents predicted thatfoundation funding would increase in 2018.
But only 15% of this year’s respondents reported that foundation
funding had actually increased in 2018.
TAX REFORM
ReducedCharitableGiving
The Federal Charitable Income Tax
Deduction in NJ
Nearly half (46%) of NJ households who claimed federal
charitable tax deductions in 2016* had incomes of under
$100,000. They donated more than $1.5 billion to charity that
year – nearly one-quarter of all claimed gifts.
Four-fifths (81%) of NJ households who claimed federal
charitable deductions in 2015 had incomes of under $200,000.
They gave $3.2 billion to charity that year – 48% of all claimed
gifts.
More than 35% of individual returns in NJ had taken a charitable deduction in 2016.
Source: Internal Revenue Service, Individual Income and Tax Data, by State and Size of Adjusted Gross Income, Tax Year 2016 (most recent year available)
23
Charitable Giving Incentive Legislation
Pending BipartisanLegislation –
Federal and NJ
24
Repeal of Non-Profit Transportation Tax Introduced
NJ Non-Profits’
Top Issues
Top Challenges
for Individual
NPs
Financial Uncertainty
53%Branding/ Commun.
48%
Benefits costs 33%
Low org visibility
29%Increased demand for
services 25%
Need strategic planning
28%
Staffing (affording)
34%
Boards 46%
Source: Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2019
Top Challenges for the NP
Community
Infrastructure/Capacity Bldg 64%
Boards (Attracting)
46%
State fiscal policy/
budgets 38%
Advocacy/ Lobbying
Rights 28%
Diversity/ Equity in NPs
24%
Federal Funding /
Budget 29%
Giving/ volunteering
incentives 37%
Attract/retain qualified
workers 39%
Fndn / Corp Funding 48%
Source: Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2018
Other Observations by Respondents
• Uncertainty about the federal tax law and its impact on charitable giving, the state’s non-profits, and New Jersey in general
• Escalating administrative costs associated with government grants and contracts
• The need for increased funding to cover projected costs of employment law changes in NJ
• Impact of federal policies on vulnerable people
• The need to continue to strengthen relationships with policy makers at all levels of government
Other Issues(2019)
Seeking new/alternative revenues
Increasing volunteer recruitment
Increasing advocacy
New & more collaborations
Program adjustments
Budget adjustments
Special events
Sharing services
Actions Non-Profits are Taking
Overall circumstances
compared with one year ago
Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2008-19
Predictions for the coming
year (2008-2019)
How have past predictions panned out from year
to year?
Center for Non-Profits, New Jersey Non-Profits: Trends and Outlook, 2008-18
Source: Center for
Non-Profits, NJ Non-
Profit Issues/Trends
surveys, 2008-2019
WHY DOES THIS
MATTER?
NEEDS a strong non-profit
community
Resource Squeeze
CAPACITY GAP
What can we do?
38
SPEAK OUT
Tell the Story
Improve Understanding About Non-Profits
39
What can we do?
• Streamline laws/regulations
• Strengthen charitable giving incentives
Improve the Fundraising /
Operating Climate for Non-Profits
Strengthen Gov’t/ Non-Profit Partnerships
•Reduce bureaucracy
•Contract Reform
• Increase dialogue with government officials
• Joint problem-solving
Strengthen Government/ Non-Profit Partnerships
What else can we do?
Stay informed/educated
Invest in advocacy
Diversify revenue streams
Look for program efficiencies
Collaborate
KNOW YOUR DONORS/FUNDERS!
CHANGE THE DIALOG
Support “real cost” funding
Invest in capacity building, leadership development
Keep communications flowing
What can we do?
Stand Together
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non-profit community.
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www.njnonprofits.org/Membership.html
www.njnonprofits.org/2019AnnualSurveyRpt.pdf
Stay in touch!
Join our E-MAIL LIST
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Linda M. Czipo
President & CEO
Center for Non-Profits
Phone: 732/227-0800
E-mail: [email protected]
Web: www.njnonprofits.org
THANK YOU!
Blog: www.njnonprofits.org/blog