And The Survey Says: Berkshires Nonprofits Are Rock Stars!
In an exceptionally difficult year and environment, Berkshires nonprofits fulfilled their missions.
Berkshire residents are well aware that the county runs, in great part, on the work of nonprofit organizations. So it was positive news when the Nonprofit Center of the Berkshires (NPC) released its Health of the Berkshire Nonprofit Center Report last week. Turns out, the state of the health of the Berkshire nonprofit sector is surprisingly good.
That this can be said against the backdrop of COVID-19 makes it a remarkable feat, given that nonprofits face challenges even in the best of times. But consider: Liana Toscanini, founder and executive director of the NPC, says that up until last week, she hadn’t heard of a single nonprofit that went out of business in the past year. (Moments House, a cancer drop-in center in Pittsfield, was the first casualty.)
The NPC, which serves as a clearinghouse for information for nonprofits, conducted its survey in December 2020. While there are nearly 1,000 nonprofits in the county (making Berkshire County one of the highest in numbers of nonprofits per capita in the Commonwealth), NPC claims 145 of them as members, in all categories and sizes. Around 90 of them responded to the survey, and Toscanini acknowledges that the people who responded are the most engaged, and quite possibly among the most successful of the organizations.
From The Health of the Berkshire Nonprofit Sector survey, by The Nonprofit Center of the Berkshires, December, 2020
Still, Toscanini herself was impressed with what these organizations have pulled off in the past year. “We were surprised to see that 37% of participating nonprofits had more than six months of operating reserves before COVID hit, and the goal is to have 3 to 6 months reserve in the bank” she says.
Earned income took a hit with so many programs unable to proceed as usual. COVID forced 60% of the responding organizations to dip into their precious reserves as well as make budget cuts. A query about “top-of-mind challenges and concerns” put the decrease in program revenue at the top of the list, followed by understaffing, increased demand for services, and employee burnout.
But: Three-quarters of the respondents didn’t lose any employees in 2020, partially — or even mostly — a result of PPP funding. "PPP was a total savior," says Toscanini.
It seems counterintuitive that concerns about decreased donations fell farther down the list of challenges. People — we — have continued to give to these vital agencies. (Nationwide, giving was up by more than 10% in 2020.) This can be attributed both to the philanthropic nature of our community, and the fact that nonprofits have worked hard at fundraising.
“Everyone stepped up, and I mean everyone,” says Toscanini [photo, right]. “Some people donated their government bailout money. In our area, we have all these really philanthropic people, and regular people, and second homeowners. The Gilded Age cottage thing has never really disappeared. Every organization has their one person who can give more than the others.”
The Berkshire Immigrant Center is a good example. Michelle Lopez, its executive director, says that BIC did better than expected in terms of fundraising during the pandemic.
“We were not able to hold our annual One World Celebration concert that we had planned in June 2020, and also didn't host any house parties or dinners to help fundraise like we had hoped to do in the fall,” Lopez says. “However, our Annual Appeal that was sent out right before Thanksgiving 2020 raised 85% more than in 2019! This made up for our lack of in-person fundraisers.”
The positive picture continues. Revenue loss was minor, and BIC did not lay off or furlough any employees. “Due to public media attention, client/community word of mouth, and tremendous work by our staff, volunteers and board, we have received support from 32 new donors this year,” Lopez says.
Toscanini points out that businesses pitched in, too, giving money and materials (like masks), and their employees volunteered. “Between individuals and businesses and government funding, we all made it through,” she says. “We just have to do it again, because this isn’t over.”
Throughout the pandemic, NPC has provided webinars on building a board, stress management, grant writing, fundraising, cultivating donors, and other topics. Toscanini has held two gala roundtables and lauds the creativity with which many of these organizations have managed their fundraising campaigns. Still, 39% of the respondents reported that virtual fundraising was less successful than in-person.
The big question is, what does the future look like for the Berkshires non-profit world? Toscanini says the indicators are that people will keep giving. They want these organizations to stay afloat. The groups will continue to work on efficiencies: expanding boards, involving volunteers more, revenue diversification, using available technology to their advantage.
“2020 was the year nonprofits were made for,” Toscanini says. “We proved to the be the safety net. This is who we are — we fulfilled our missions.”
