Charity organizations across the country are feeling the financial and housing crisis harder than anyone else. Thousands of charities are being forced to shut down, and with the economy continuing in its downward spiral, it’s clear that nonprofit organizations will continue to suffer. With nonprofits relying on charity donations for their sole income, it’s clear that many more will be in trouble as charity donations continue to decline.
Let’s look at the facts:
There are hundreds of millions of active nonprofit organizations in the United States. Combined, these nonprofits bring in over $1.9 trillion in revenue each year. Obviously, some charities take in more of that $1.9 trillion than others, but simply put, they each get their share.
Since the economy began to drop and the housing crisis surfaced, charity donations have dropped each year by billions of dollars. The $1.9 trillion that nonprofits receive each year is declining, making each organization’s piece of that revenue smaller.
The third, and most disappointing fact to look at is that over one million organizations claim nonprofit status each year. This is great that many organizations are willing to help support their communities, but disappointing because so many new organizations are joining an industry that continues to lose money each year. This is an obvious problem because nonprofit organizations are either forced to fail, or take an ever lesser amount of annual revenue.
It’s clear by looking at the facts that many nonprofit organizations will be forced to shut down, eliminating their support for the community and their employees.
Another important fact to look at is that over 10% of the American work force is employed by the nonprofit sector. This is an obvious problem because many nonprofits will be forced to shut down and lay off workers, causing a potential unemployment problem across the country.
It’s clear that many charities will be losing their valuable donations and need to start looking for a new way to support themselves other than the typical bake sale…