> Skip to content
FEATURED:
  • Philanthropy 50
  • Nonprofits and the Trump Agenda
  • Impact Stories Hub
Sign In
  • Latest
  • Commons
  • Advice
  • Opinion
  • Webinars
  • Online Events
  • Data
  • Grants
  • Magazine
  • Store
    • Featured Products
    • Data
    • Reports
    • Collections
    • Back Issues
    • Webinars
    • Featured Products
    • Data
    • Reports
    • Collections
    • Back Issues
    • Webinars
  • Jobs
    • Find a Job
    • Post a Job
    • Career Advice
    • Find a Job
    • Post a Job
    • Career Advice
Sign In
  • Latest
  • Commons
  • Advice
  • Opinion
  • Webinars
  • Online Events
  • Data
  • Grants
  • Magazine
  • Store
    • Featured Products
    • Data
    • Reports
    • Collections
    • Back Issues
    • Webinars
    • Featured Products
    • Data
    • Reports
    • Collections
    • Back Issues
    • Webinars
  • Jobs
    • Find a Job
    • Post a Job
    • Career Advice
    • Find a Job
    • Post a Job
    • Career Advice
  • Latest
  • Commons
  • Advice
  • Opinion
  • Webinars
  • Online Events
  • Data
  • Grants
  • Magazine
  • Store
    • Featured Products
    • Data
    • Reports
    • Collections
    • Back Issues
    • Webinars
    • Featured Products
    • Data
    • Reports
    • Collections
    • Back Issues
    • Webinars
  • Jobs
    • Find a Job
    • Post a Job
    • Career Advice
    • Find a Job
    • Post a Job
    • Career Advice
Sign In
ADVERTISEMENT
Finance
  • Twitter
  • LinkedIn
  • Show more sharing options
Share
  • Twitter
  • LinkedIn
  • Email
  • Facebook
  • Copy Link URLCopied!
  • Print

Most Nonprofits Lack Recession Plan

By  Michael Theis
February 26, 2020
Businessman standing on falling diagram and peering into the future on the background of stock market selloff. Economic crisis. Bankruptcy and money devaluation. (Getty Images)
Getty Images
Businessman standing on falling diagram and peering into the future on the background of stock market selloff. Economic crisis. Bankruptcy and money devaluation. (Getty Images)

Two-thirds of nonprofits don’t have a plan to deal with a recession, according to survey data from the Center for Effective Philanthropy.

And the vast majority of nonprofits — 96 percent — say the foundations they rely on for funding have not talked with them about how a recession would change the way they support those nonprofits. But nonprofits appear very eager to have those conversations; 89 percent say they would like their supporting foundations to discuss recession planning.

Since the end of the Great Depression, the typical American economic expansion cycle has lasted an average of about five years. The current economic expansion is entering its 11th year since the Great Recession, causing economists and nonprofit officials alike to wonder when the next downturn will hit.

We're sorry. Something went wrong.

We are unable to fully display the content of this page.

The most likely cause of this is a content blocker on your computer or network.

Please allow access to our site, and then refresh this page. You may then be asked to log in, create an account if you don't already have one, or subscribe.

If you continue to experience issues, please contact us at 571-540-8070 or cophelp@philanthropy.com

Two-thirds of nonprofits don’t have a plan to deal with a recession, according to survey data from the Center for Effective Philanthropy.

And the vast majority of nonprofits — 96 percent — say the foundations they rely on for funding have not talked with them about how a recession would change the way they support those nonprofits. But nonprofits appear very eager to have those conversations; 89 percent say they would like their supporting foundations to discuss recession planning.

Since the end of the Great Depression, the typical American economic expansion cycle has lasted an average of about five years. The current economic expansion is entering its 11th year since the Great Recession, causing economists and nonprofit officials alike to wonder when the next downturn will hit.

Among the 33 percent of nonprofits that reported they did have a plan, 38 percent said their organization would need to tap into a reserve fund to ride out the next recession. Asked for anecdotal data as part of the survey, one nonprofit official told pollsters, “We are preparing now, but not soon enough, by establishing a rainy-day fund to hold six months of operating cash.”

Twenty-one percent of nonprofits with a plan said they would have to reduce programs and services if a recession hit. Meanwhile, 64 percent of nonprofits said a recession would increase the need for their programs or services.

ADVERTISEMENT

The results are drawn from a survey of nearly 420 grant-seeking nonprofits with operating budgets of $100,000 to $88 million.

We welcome your thoughts and questions about this article. Please email the editors or submit a letter for publication.
Finance and RevenueGrant Seeking
Michael Theis
Michael Theis writes about data and accountability for the Chronicle, conducting surveys and reporting on fundraising, giving, salaries, taxes, and more.
ADVERTISEMENT
ADVERTISEMENT
SPONSORED, GEORGE MASON UNIVERSITY
  • Explore
    • Latest Articles
    • Get Newsletters
    • Advice
    • Webinars
    • Data & Research
    • Podcasts
    • Magazine
    • Chronicle Store
    • Find a Job
    • Impact Stories
    Explore
    • Latest Articles
    • Get Newsletters
    • Advice
    • Webinars
    • Data & Research
    • Podcasts
    • Magazine
    • Chronicle Store
    • Find a Job
    • Impact Stories
  • The Chronicle
    • About Us
    • Our Mission and Values
    • Work at the Chronicle
    • User Agreement
    • Privacy Policy
    • California Privacy Policy
    • Gift-Acceptance Policy
    • Gifts and Grants Received
    • Site Map
    • DEI Commitment Statement
    • Chronicle Fellowships
    • Pressroom
    The Chronicle
    • About Us
    • Our Mission and Values
    • Work at the Chronicle
    • User Agreement
    • Privacy Policy
    • California Privacy Policy
    • Gift-Acceptance Policy
    • Gifts and Grants Received
    • Site Map
    • DEI Commitment Statement
    • Chronicle Fellowships
    • Pressroom
  • Customer Assistance
    • Contact Us
    • Advertise With Us
    • Post a Job
    • Reprints & Permissions
    • Do Not Sell My Personal Information
    • Advertising Terms and Conditions
    Customer Assistance
    • Contact Us
    • Advertise With Us
    • Post a Job
    • Reprints & Permissions
    • Do Not Sell My Personal Information
    • Advertising Terms and Conditions
  • Subscribe
    • Individual Subscriptions
    • Site License Subscriptions
    • Subscription & Account FAQ
    • Manage Newsletters
    • Manage Your Account
    Subscribe
    • Individual Subscriptions
    • Site License Subscriptions
    • Subscription & Account FAQ
    • Manage Newsletters
    • Manage Your Account
1255 23rd Street, N.W. Washington, D.C. 20037
© 2025 The Chronicle of Philanthropy
  • twitter
  • instagram
  • youtube
  • facebook
  • linkedin