Foundation releases State of Yolo Nonprofit Sector Report

The Yolo Community Foundation identified four main themes following their third annual State of the Yolo Nonprofit Sector Report.

According to a press release from the Yolo Community Foundation (YCF), the report enables the community to understand the needs and concerns of Yolo nonprofits in order to support the nonprofits as they serve the Yolo County community.

“This year’s report focuses on how nonprofits are emerging from the pandemic and what their greatest concerns are for their next fiscal year,” the press release explained.

The report is based on survey responses from 59 of local nonprofits, collected in February 2023, supplemented by interviews with a cross-section of executive directors.

The four main themes identified following YCF’s research included expenses outpacing revenues, maintaining services amid high demand and limited resources, underpaid and overworked staff and the critical need for volunteers and nonprofits’ continued call for more unrestricted funding.

With increasing costs, limited resources, potential declining donations, the end of COVID-related government assistance programs and demand for community services expected to rise, 32% of survey respondents were worried they will need to cut programming.

Nonprofits are also facing ongoing burnout among staff and volunteers, exacerbated by the COVID-19 pandemic, economic instability, climate change and political polarization.

“Chronic understaffing and underpayment of qualified employees, coupled with declining volunteerism, has left many nonprofits struggling to keep up with community demands,” the press release said.

Due to these issues, nonprofits are urging for more unrestricted funding, seeking more autonomy in allocating funds in order to deliver on their missions and respond to evolving needs.

Based on the themes that emerged from the report, YCF issued the following call to action for local donors, elected officials and community members.

Recommendations for donors:

-Trust that local nonprofit professionals know best how to serve the community. Engage in trustbased philanthropy practices. Provide unrestricted and/or general operating support which supports capacity building & allows nonprofit organizations to be nimble.

-Invest in endowments and building reserve funds. Funding endowments and supporting a nonprofit to build cash reserves is an investment in a nonprofit’s sustainability, innovation and growth.

-Fund the full cost of doing business. Offer grants that take into account the entire cost for a nonprofit to implement and deliver on their mission.

Recommendations for elected officials:

-Reduce restrictions and complexity of government grants to let nonprofits be nimble and reduce the staffing burden associated with reporting.

-Increase funding to nonprofits, which are increasingly taking on services that the government has performed in the past.

-Raise awareness of the critical roles nonprofits play in our community.

Recommendations for Community Members:

-Return to (or start) volunteering. Volunteers are essential to many Yolo nonprofits, and volunteers gain physical and mental health benefits from the act of volunteering. Consider donating your time, your skills, etc.

-Make monetary donations—even a little goes a long way to a local nonprofit. Consider identifying a local nonprofit whose work you truly value and commit to providing them with consistent cash donations. This type of sustained funding addresses an important need for many nonprofits — a reliable, sustainable cash flow.

-Learn about Yolo County nonprofits, for instance at www.bigdayofgiving.org and in YCF’s upcoming Yolo County Nonprofit Directory (visit www.yolocf.org in late April to find it). Learn how they are serving our community and how you can support them in their mission.

To read the complete State of the Yolo Nonprofit Sector Report, visit https:// bit.ly/YCFStateoftheSector2023.