Finance and Revenue

The National Rifle Association’s financial turnaround might seem to bode well for the organization, but a look below the surface shows ominous signs.

Foundation grants and gifts from individuals could be at risk as nonprofits continue to struggle to pay wages that will keep workers from seeking other opportunities.

Damage to nonprofits appears limited so far, but charity leaders and experts urge groups to protect assets amid fears about the banking industry’s health.

Pressures spun up from Covid are cutting into revenue, as foundation and government funding dwindles and a possible recession looms.

Nonprofits say the tight labor market continues to pose problems, and some organizations are considering merging or closing.

Prompted by the police murder of Tyre Nichols in Memphis, grant makers say it’s time to stop the erratic flow of money to organizations that work to advance racial justice and ensure money goes to such organizations generously and consistently.

Organizations are seeking loans and taking other steps to help keep workers, and those who are trying to build or renovate facilities are facing high borrowing costs. Meanwhile, foundation assets have been hit hard, so it might be tougher for nonprofits to obtain grants in the coming year or two.

The drop comes after three years of gains, so that might mitigate the pain of the losses.

One reason could be that government programs and nonprofits that help people get enough food are succeeding.

Nonprofits likely first recovered from pandemic job losses in October 2022 and have added jobs since December.