Wednesday, May 6, 2020

Arizona Nonprofit Sector Anticipated To Lose $433 Million By Year's End

Posted By on Wed, May 6, 2020 at 3:30 PM

The Alliance of Arizona Nonprofits, an advocacy group representing more than 20,000 nonprofits, estimates the state's nonprofit sector has already lost more than $40 million due to the COVID-19 pandemic and anticipates a $433 million loss be year's end.

These numbers come from the Alliance's COVID-19 Nonprofit Impact Pulse Survey, which found that 98 percent of responding organizations have been "significantly impacted" by the pandemic. Of those impacted, 86 percent reported decreased revenue, and 76 percent indicate a disruption of services to clients and communities as of May 4.

“This may only represent the tip of the iceberg,” said Alliance CEO Kristen Merrifield in a press release. “Having access to PPP and Economic Injury Disaster Loans will certainly help, and we’ve seen the incredible generosity of the community through the recent Arizona Gives Day event, which raised more than $6 million."

Of the survey's 306 respondents, one-quarter reported laying off or furloughing a total of 1,962 employees and nearly 60 percent (155 nonprofit organizations) applied for Paycheck Protection Program loans, totaling more than $37.7 million in relief funding. Of those applying for loans, 48 percent were approved, 45 percent are waiting for approval, and 7 percent were denied funding. 

Not only has the pandemic cut revenues but also reduced the number of available volunteers and donors for local nonprofits.

"The collaboration among grantmaking organizations have made more than $36 million available to nonprofits, but, unfortunately, we’re a long way from assessing the full impact," Merrifield said. 

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