Nonprofits in Southwest Colorado face millions in financial losses and an uncertain future because of the economic impacts of the coronavirus pandemic.
Nonprofits expect to lose more than $8 million in revenue, according to a needs assessment conducted by the Community Foundation Serving Southwest Colorado and United Way of Southwest Colorado. The organizations have already provided $201,000 in stop-gap funding to 32 organizations through the Community Emergency Relief Fund in response to the crisis.
Seeing the status of nonprofits in the region, CERF will disburse another $175,000 in July.
“The goal of providing this funding is to help strengthen our local nonprofits at a time when they have faced the same economic hardships as other businesses, but when their services are needed more than ever to support people in our communities,” said Lynn Urban, president and CEO of United Way of Southwest Colorado.
More than a third of the 92 respondents had to lay off, furlough or reduce pay to staff over the past three months. The 2018 report found that nonprofits make up as much as 7% of the regional workforce.
“The recent needs assessment indicates that the need far exceeds the emergency funds available,” said a CERF news release. “Uncertainty in future funding is the primary concern expressed.”
While respondents expect to lose $8 million in revenue, they have received less than $2 million in emergency-related grants. On average, the nonprofits have about 5.75 months of expenses in their operating reserves.
The Boys & Girls Club of La Plata County had to adapt programming, which decreased the number of students served, and San Juan Symphony canceled its performances. The La Plata County Humane Society had to close its thrift store, which provides 40% of the nonprofit’s income, for about two months.
“Most of our region’s nonprofits rely on events and fundraisers to close the gap on operational expenses,” said Briggen Wrinkle, executive director of the Community Foundation. “With so many events and fundraisers canceled, our organizations are hurting.”
Wrinkle said the trickle-down effect from failing nonprofits will have various economic impacts. Nonprofits contribute more than $2 million to the annual real-estate market in rent and mortgage payments and more than $210,000 in annual spending on local food services, according to the 2018 study.
smullane@durangoherald.com
