Nearly three quarters of nonprofit organizations are concerned that tax exemptions will be revoked in the next year or two, according to a new survey.
The survey of U.S. nonprofit organizations by Sage North America found that 74 percent of the 602 organizations surveyed said they are very or somewhat concerned that some tax exemptions for nonprofits will be revoked in the next one or two years.
In general, however, the survey found that organizations that fundraise are optimistic that 2011 will be a better year than 2010, with 90 percent saying they expect the amount of funds raised in 2011 to be equal to or higher than the amount raised in 2010.
In addition, organizations are planning to put more effort behind online fundraising during 2011. Forty-four percent of respondents said they expect the share of donation made online to increase this year.
“While signs point to a more positive outlook on fundraising, it's clear that nonprofit organizations are still cautious and concerned, particularly as the state budget crisis and the ‘ARRA cliff’ continue to unfold,” said Krista Endsley, senior vice president and general manager for nonprofit solutions at Sage. “We’re entering a time where diversification of funding sources and increasing attention to individual donors will be key for many groups looking to mitigate potential declines in government funding and contracts.”
The survey also found that online donations make up a very small part of the fundraising volume for organizations surveyed, with 74 percent of respondents raising 5 percent or less online. Approximately half of those surveyed expect the amount of government funding they receive to decrease during 2011, mainly due to budget cuts at the local level. Eighty-five percent of respondents receiving government funding said recent changes in the political environment will have at least some effect on their funding.
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