07/23/2020

Analysis: The Risks Nonprofits Face from COVID-19

Individual nonprofits face unique financial circumstances

It’s well known that nonprofits are struggling during the COVID-19 crisis. But a new analysis from Candid—a nonprofit information service founded last year in a merger of GuideStar and the Foundation Center—attempts to quantify the scope of the challenges they face.

A projection-based analysis of more than 315,000 U.S. nonprofits, with a focus on 501(c)(3) charitable nonprofits, found that in normal circumstances, 4 percent of those organizations (12,042) would close, but 11 percent (34,472) are at risk of closure due to COVID-19.

Those are median numbers. In the best-case scenario, the study says, 3 percent of nonprofits will shut their doors amid COVID-19; in the worst-case scenario, the total is closer to 38 percent.

Please select this link to read the complete article from Associations Now.