Distribution

Four Survey Tracks

Skipped Questions

Anonymity

Acknowledgments

39 consultants responded. Most provide multiple services. The highest number- 51.3% of respondents - provide organizational development and strategic planning services.

A significant number of consultants anticipate a decline in revenues in specific areas:

• 58% - Individual donations
• 50% - Corporate donations
• 39% - Government grants and contracts
• 37% - Capital campaign revenue
• 34% - Foundation grants

15.8% of consultants will urge their clients to adjust their budgets immediately. 78.9% will recommend that clients develop a contingency budget - "just in case." Only 5.3% will not recommend at least a contingency plan.

The top three recommended areas that consultants will urge clients to target for cuts are operating expenses, capital campaign expenses and programs.

They also will recommend increasing budgets for marketing/PR and fundraising.

The largest number of consultants - 46.9% of respondents - anticipates the impacts to extend for 6 to 11 months.

25.2% expect contributions made to the tsunami disaster relief to impact their organization's income. 40.2% believe an impact is possible.

In every category except individual donations, an often slim majority of nonprofits anticipate no change in revenue levels, but those who project revenue impacts generally appear to agree with consultants and anticipate shortfalls in these areas:

• 58% - Individual donations
• 38% - Corporate donations
• 27% - Foundation grants
• 20% - Event revenue
• 17% - Government grants/contracts
• 13% - Capital campaigns

57.8% of nonprofits anticipate at least the possibility of cutting budgets. Staffing appears to be the least likely focus of budget cuts*. Fundraising expenses are next most likely to be defended. Marketing/PR and fundraising expenses are most likely to see increases. Operating (34%), marketing/PR (27%) and programs (26%) are most likely to be cut if needed.
_{*Excluding capital campaigns - does not apply to 63% of organizations.}

2 of 8 (25%) may change their funding priorities as a result of the tsunami disaster and relief efforts. One is somewhat likely to divert funds to international relief efforts. Another is very likely to conduct special fundraising efforts to support disaster relief while sustaining current levels of support for other organizations.

Reassuring news for nonprofits comes from the fact that 6 of the 8 foundations that responded (75%) indicate that they are at least somewhat unlikely to divert funds normally granted to local, regional or state-wide organizations to national or international organizations providing relief for the tsunami affected areas.

Other reassuring news for nonprofits is that one foundation is very likely to increase funding to certain organizations not related to the disaster relief to help make up for other deficits. Three others are somewhat likely or likely to provide more technical assistance to organizations to help them develop strategies for dealing with anticipated income losses.

34.3% (n=236) indicated their intent to alter their giving patterns in response to the tsunami disaster. 35.8% indicated that they intended to divert a portion of the funds they normally give to other organizations to the tsunami disaster relief efforts.

Of those who do NOT plan to support tsunami disaster relief efforts, nearly equal numbers indicate that this is based on limited resources and a preference to donate to the local or U.S. based organizations they have supported in the past (43.8%) and a belief that local and national organizations will need their donations more than ever (42.5%). 9.2% report that they have concerns that funds donated to the tsunami effort won't reach those in need.

Observation: With approximately 35% of respondents indicating intent to divert a portion of their contributions from organizations they traditionally support to tsunami disaster relief efforts, it appears that respondents were generally candid. On the other hand, it's reasonable to speculate that at least some of the respondents, who indicated an intention to supplement current levels of giving with additional gifts for tsunami relief, may not live up to those "good intentions." Therefore, it's reasonable to anticipate that significantly more than 35% may divert a portion of the funds they normally give to other organizations to the tsunami disaster relief efforts.

All survey respondents were asked to comment on the sector as a whole. Responses regarding every area except volunteerism anticipate an impact from tsunami relief efforts.

Highest anticipated negative impacts:

• 67% - Arts/Culture/Humanities
• 47% - Advocacy
• 44% - Human Services (local)
• 42% - Environmental

• 21% - Religious
• 26% - Human Services (international)
• 28% - Health
• 37% - Education

Respondents overall expected a shorter period of impact - 1-6 months - compared to the majority of consultants, who expect impacts to extend from 7-11 months.

CommUlinks plans to conduct additional surveys to measure the actual impact that nonprofit organizations are experiencing. The schedule for these surveys is:

• Survey open March 1 ~ ~ close & report March 18
• Survey open July 5 ~ ~ close & report July 22
• Survey open January 3, 2006 ~ ~ close & report January 22