Nonprofits face shortfalls

This year brought an outpouring of support for disaster-relief efforts, but many non-relief charities are feeling the pinch and may be forced to cut services, a new study says.

The new report, released by the Colorado Nonprofit Association, includes results of a survey of 500 donors, nonprofits and nonprofit consultants from throughout the U.S.

More than seven in 10 respondents believe donations to disaster-relief organizations have hampered giving to other nonprofits, and six in 10 nonprofit respondents say they will be forced to alter their budgets as a result.

Almost one in three donors who contributed to disaster-relief efforts say they did so by redirecting some or all of their regular charitable giving, the study says.

More than half of the responding nonprofits that conducted annual campaigns during 2005 say giving was down from 2004, and almost all in that group say disaster relief was thought to be, or known to be, the cause for the decline.

Smaller nonprofits have been hit particularly hard, the study says, with one in three such groups reporting lower revenues compared with one in four larger charities.

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